**White House Economic Council Director Kevin Hassett on Government Shutdown and Economic Impact**

White House Economic Council Director Kevin Hassett is known for calling things as they are, rather than as many might wish them to be. In a recent interview, Hassett reframed the issue of court orders demanding cabinet secretaries spend money to fund the government, referencing the law around federal spending: money that isn’t appropriated by Congress simply can’t be spent. He warned that any agency complying with court orders outside this strict legal framework risks lawsuits for unauthorized spending.

Hassett also suggested this legal impasse could be part of why Democrats aren’t reopening the federal government. By prolonging the shutdown, they may be creating a catch-22 for the Trump administration: either violate appropriations law or risk the consequences of continued closure. CBS’s Margaret Brennan, visibly surprised, questioned whether Democrats would pursue such a strategy, but Hassett argued that “Lawfare” tactics were indeed part of broader political maneuvers against the Trump administration.

*Below is a condensed and edited transcript of their conversation:*

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**Margaret Brennan:** We begin this morning with Kevin Hassett, Director of the White House National Economic Council. This is now the longest government shutdown in American history. Treasury Secretary Mnuchin recently noted that November 15 was the hard stop for any paychecks going to US troops. Does that remain the point of exhaustion?

**Kevin Hassett:** That’s about the right number. The problem is, under the law, we’re not allowed to spend money that’s not appropriated. The Antideficiency Act actually says that if a government official spends money not appropriated by Congress, they could face criminal penalties. People are studying the law carefully and trying to get as much money out the door as is legal. We’re glad we found a way to get most of the SNAP money paid, but it’s really pushing legal boundaries. That’s why the Supreme Court had to put a ruling from Rhode Island on hold.

**Margaret Brennan:** Until the lower court rules?

**Hassett:** Right. Unless the lower court provides a legal justification—which probably doesn’t exist—we need to get the government open. Goldman Sachs estimates about 1.5% has already been knocked off GDP. That may be a low estimate if the shutdown continues even a few more weeks. There could be massive disruption, especially around the holidays, which is a critical economic period.

**Margaret Brennan:** On food stamps, the Supreme Court issued a temporary stay, blocking full benefits pending the lower court’s decision. Why not use short-term patchwork solutions as with military pay?

**Hassett:** The president’s and our job is to uphold the law. Lawyers tell us what’s legal. The military is different due to commander-in-chief authority. But the legal analysis shows we’re doing everything by the book, trying to avoid illegal actions. In this season of lawfare, any cabinet secretary who spends unappropriated money risks lawsuits.

**Margaret Brennan:** Are Democrats likely to challenge paying benefits like military pay or food stamps in court?

**Hassett:** We’ve seen Democrats go to court on very weak charges, so yes, they could challenge anything.

**Margaret Brennan:** So your position is: open the government, then discuss healthcare, correct?

**Hassett:** Absolutely. Our calculation is to get the government open, pay people—including 750,000 federal workers—and then get back to business as usual through regular order.

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### On Healthcare Negotiations

**Margaret Brennan:** President Trump recently suggested redirecting money from insurance companies to people, letting them buy their own healthcare, and proposed terminating Obamacare. Is this the Cassidy proposal?

**Hassett:** The president is brainstorming to help the Senate find a way to end the shutdown. The idea is to give people more choices than the government typically allows, perhaps sending direct checks for healthcare premiums. This, however, isn’t yet the official Senate position, but the President is encouraging discussion.

**Margaret Brennan:** Do you agree a healthcare deal is needed to address high costs?

**Hassett:** If you look at the Affordable Care Act, premium increases haven’t been made permanent post-COVID, mainly due to budget concerns. Most increases don’t impact lower-income groups, but seniors above roughly four times the poverty level are seeing significant jumps—up to $500 more a month. It’s an issue that deserves thoughtful next steps.

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### On Economic Indicators, Inflation, and Tariffs

**Margaret Brennan:** The president’s approval on the economy is down to 38%, with 75% of people saying he’s not focused enough on lowering prices. The Consumer Price Index showed groceries up nearly 3% from last year. Do you dispute that?

**Hassett:** Let’s look at the facts. Inflation rose about 5% under Biden; under Trump’s first months, it went up about 2.7%. Mortgages have increased with interest rates up roughly 4%. Grocery prices are actually down under Trump. Real spending power dropped about $3,000 under Biden due to inflation. Under Trump so far this year, it’s up $1,200. People are stretched, but we’re making progress. GDP growth is around 4%, and industrial production and capital spending are near all-time highs.

**Margaret Brennan:** Are you comfortable with 3% inflation?

**Hassett:** I’m comfortable with 2% inflation—numbers should go a bit lower, but the trajectory is positive.

**Margaret Brennan:** How much are tariffs contributing to inflation?

**Hassett:** Studies show tariffs may account for two-tenths to half a percentage point of inflation—a one-time bump, not ongoing. Our estimates are closer to zero. In fact, imported goods prices have been declining as sellers—like the Chinese—reduce prices to maintain U.S. market share.

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**Margaret Brennan:** Kevin Hassett, always good to have you here. Thank you for joining us.

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*Stay tuned for more updates on the government shutdown, economic impacts, and ongoing negotiations in Washington.*
https://theconservativetreehouse.com/blog/2025/11/09/white-house-nec-director-kevin-hassett-discusses-government-shutdown-democrats-baiting-trump-to-violate-the-law-video-and-transcript/