Senate Democrats proposed a new deal to Republicans Friday afternoon, announcing they’ll immediately vote to reopen the government in exchange for a one year extension of Affordable Care Act tax subsidies. The proposal is being sold as a compromise, although Republicans immediately poured cold water on the idea.
“Democrats would like to see an end to this shutdown, and we want to respect Leader [John] Thune’s desire not to negotiate on ACA until after the government reopens,” Senate Minority Leader Chuck Schumer, D-N.Y., said as he announced the proposal from the Senate floor. “Therefore, we’d like to offer a simple proposal that would reopen the government and extend the ACA premium tax credits simultaneously.”
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Thune, R-S.D., called the offer a nonstarter. Other Republicans in the Senate and House of Representatives echoed that.
“I think everybody who follows this knows that’s a nonstarter. There is no way,” Thune told reporters Friday. “The Obamacare extension is the negotiation. That’s what we’re going to negotiate once the government opens up. But you know, a one year extension along the lines of what they’re suggesting… that doesn’t get close.”
Schumer said if Congress approves a one year extension for the ACA subsidies now, it’s not too late for insurers to update pricing that’s set to take effect next year. Newly released premiums for 2026 gave many low income Americans sticker shock, and in some cases, made their insurance plans impossible to afford.
Schumer added that he spoke with the Democratic caucus about the proposal, indicating he has counted votes to ensure there is enough support to pass the measure.
“Democrats are ready to clear the way to quickly pass a government funding bill that includes health care affordability,” Schumer said. “Leader Thune just needs to add a clean, one year extension of the ACA tax credits to the [Continuing Resolution] so that we can immediately address rising health care costs. That’s not a negotiation. It’s an extension of current law, something we do all the time around here.”
It’s doubtful Schumer’s ACA proposal will be signed into law. Both House Speaker Mike Johnson, R-La., and House Minority Leader Hakeem Jeffries, D-N.Y., previously expressed opposition to a one year extension. Johnson doesn’t want them extended at all. Jeffries wants them made permanent.
Schumer called for the creation of a bipartisan committee to discuss health care policy, with the goal of making significant reforms before Americans enroll for new health insurance plans in November 2026.
Democrats also want the temporary funding package to include appropriations bills for the Food and Drug Administration, Veterans Affairs and legislative branch, which would last all of the 2026 fiscal year. The Senate approved those earlier this year on a bipartisan basis.
