Senate Minority Leader Chuck Schumer (D-N.Y.) on Friday reportedly unveiled a proposal to end the ongoing government shutdown, offering a one-year extension of the enhanced Affordable Care Act (ACA) tax credits alongside a short-term spending bill.
The plan marks the latest Democratic attempt to link the reopening of the federal government to the preservation of pandemic-era healthcare subsidies — a move Republicans have long criticized as political brinkmanship.
“Democrats have said we must address the health care crisis, but Republicans have repeatedly said they won’t negotiate to lower the health care costs until the government reopens,” Schumer said in remarks on the Senate floor. “So let’s find a path to honor both positions.” He added that the proposal would “reopen the government and extend the ACA premium tax credits simultaneously,” before engaging in broader talks on healthcare reform.
The proposal calls for a continuing resolution, or CR, to fund the government temporarily, along with a three-bill “minibus” of full-year appropriations measures drawn from prior bipartisan negotiations. It would also create a bipartisan committee to discuss longer-term healthcare affordability reforms, according to Schumer’s office.
The offer emerged after several days of internal Democratic debate over whether to soften demands as the effects of the shutdown deepened. Progressive lawmakers pressed to maintain a firm link between reopening the government and extending the ACA subsidies, while moderates urged flexibility in light of mounting public pressure.
Earlier this week, Senate Majority Leader John Thune (R-S.D.) had presented an alternative framework calling for a clean CR through January, coupled with a commitment to hold a future vote on extending the ACA credits.
Thune, however, warned that his conference would not negotiate on healthcare policy while the government remained closed and said that no guarantees could be made regarding the fate of the tax credits, given widespread opposition within both the Senate and House GOP.
“Republicans are not interested in using the livelihoods of federal workers and the operations of government as bargaining chips for partisan priorities,” Thune said in recent comments, emphasizing the need to reopen the government first.
Senate Republicans were expected to discuss Schumer’s proposal in a closed-door conference meeting scheduled for Friday afternoon. Thune had previously expressed hope to move forward on the House-passed CR and consider amending it to reflect progress in bipartisan discussions.
Meanwhile, Sen. Ron Johnson (R-Wis.) introduced a separate measure to ensure pay for excepted federal workers during the shutdown — a bill that Democrats blocked. Johnson attempted to pass it by unanimous consent shortly before Schumer announced his offer, but Sen. Gary Peters (D-Mich.) objected, effectively halting the effort.
Schumer’s plan, while pitched as a compromise, underscores the fundamental divide between the parties: Democrats continue to insist on coupling reopening the government with healthcare policy concessions, while Republicans argue that such conditions hold the functioning of government hostage to partisan demands.
As federal workers face delayed paychecks and key agencies remain shuttered, the standoff highlights the contrasting priorities of both parties — one seeking to expand Washington’s role in healthcare, and the other calling simply to get the government back to work.
UPDATE: Republicans officially rejected Schumer’s proposal on Friday soon after it was made, setting negotiations back to where they began.
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