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Schumer Proposal: Senate Majority Leader Chuck Schumer on Friday unveiled a new proposal to break the impasse over the U.S. government shutdown that began on October 1.
Under Schumer’s plan, the government would reopen while enhanced Affordable Care Act (ACA) subsidies remain in place for another year.
In exchange, Democrats would set aside their demand for a longer extension of those tax credits in the temporary funding bill.
Republican lawmakers, however, swiftly rejected the offer, leaving negotiations stalled and the shutdown without a clear end in sight.
Senator Lindsey Graham of South Carolina strongly criticized Senate Majority Leader Chuck Schumer’s latest proposal to end the ongoing government shutdown, describing it as “ridiculous” and “political hostage taking.”
Posting on X, the Republican senator said he would not support any plan that ties reopening the government to continuing federal subsidies under the Affordable Care Act.
“We shouldn’t be forced to keep sending taxpayer money to health insurance companies under Obamacare as the price for reopening the government,” Graham wrote. “My vote against it will be a clear rejection of Senator Schumer’s misguided plan.”
Senate Majority Leader Chuck Schumer has proposed that Democrats back a clean short-term funding bill to keep the federal government running.
In return, he said Republicans should agree to extend the enhanced Affordable Care Act tax credits for one more year.
The credits are designed to make health insurance more affordable for Americans who buy coverage through the ACA marketplaces.
The plan also calls for forming a bipartisan committee to develop long-term solutions to make health care more affordable.
As part of the offer, Senate Majority Leader Chuck Schumer has withdrawn Democrats’ earlier demand to attach an extension of the enhanced Affordable Care Act subsidies to the short-term funding bill. Those subsidies are scheduled to end in December.
The expanded Affordable Care Act subsidies, first introduced during the COVID-19 pandemic, now help more than 20 million Americans pay for health insurance.
Democrats’ push to preserve those tax credits has stalled progress on a Republican House funding bill that omits the extension, leaving it short of the 60 votes needed to pass in the Senate.
Republican lawmakers argue that decisions about the future of Affordable Care Act tax credits should be made only after Congress passes a clean government funding bill.
That position, however, could lead to higher health insurance premiums for millions of Americans starting in 2026.
The Republican Party currently holds 53 seats in the Senate, while Democrats have 45, along with two independents who typically vote with them.
Senate Majority Leader Chuck Schumer on Friday called for compromise as the federal government shutdown dragged on.
“Democrats have said we need to confront the health care crisis,” Schumer said during remarks on the Senate floor.
“But Republicans continue to insist they won’t negotiate on lowering health care costs until the government is reopened.”
“Let’s find a way that respects both sides,” he added, urging lawmakers to work toward a solution.
Senate Majority Leader Chuck Schumer on Friday proposed a plan to end the government shutdown and extend the Affordable Care Act premium tax credits at the same time.
“Our goal is simple — reopen the government, keep the ACA premium tax credits in place, and begin meaningful talks on long-term ways to lower health care costs,” Schumer said.
Senate Republican Leader John Thune of South Dakota rejected the proposal, signaling continued disagreement between the two parties.
Senate Republican Leader John Thune on Friday downplayed the latest Democratic proposal to reopen the government, saying it does not go far enough to resolve the ongoing impasse.
“They know their last proposal wasn’t serious or realistic, so maybe this counts as a small step forward,” Thune told reporters. “But it’s still nowhere near what needs to be done.”
According to a source familiar with the Republican position, Democrats had privately floated a similar offer weeks earlier, which GOP leaders had already turned down.
Republican leaders on Friday dismissed the latest Democratic plan to reopen the government, calling it a sign that their opponents are backing down.
“Today’s stunt is an admission by Democrats that it’s time to end the shutdown they started,” a GOP statement said.
A White House official told CNBC that Democrats were “holding the American people hostage over unrelated spending demands.”
The official added that the move represented “a major step back from their original position” and showed that Democrats are facing “mounting pressure within their ranks.”
A White House official said Friday that House Minority Leader Hakeem Jeffries, D-N.Y., had previously rejected a proposal similar to the one now put forward by Senate Democrats, calling it a clear departure from the House Democratic stance.
“Leader Jeffries made it clear he wouldn’t accept something like this, so it’s a notable shift from House Democrats,” the official said.
The official added that Democrats should act to reopen the government, saying the administration is ready to meet with them afterward to discuss the tax credit issue and find common ground.
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