Home EconomyUS Senate Negotiates End to 30-Day Government Shutdown and ACA Subsidy Extensions

US Senate Negotiates End to 30-Day Government Shutdown and ACA Subsidy Extensions

US Senate works to end 30-day government shutdown amid rising health care costs and expiring SNAP benefits affecting millions of Americans.

by Jake Harper
US Senate works to end 30-day government shutdown amid rising health care costs and expiring SNAP benefits affecting millions of Americans.

Senate Republicans and Democrats are actively working to finalize a proposal to end the 30-day government shutdown as early as next week, as some centrist Democrats argue that their party has effectively highlighted rising health care costs and that it is time to resolve the deadlock, reports Baltimore Chronicle, with reference to the The Hill.

Fatigue from the prolonged shutdown is growing on Capitol Hill, with the government closure approaching one month, and its effects are being felt by an increasing number of Americans. With the open enrollment period for the Affordable Care Act (ACA) health insurance marketplace beginning next month, some Democrats note that rising costs are already baked in, as Republicans have consistently refused to negotiate the extension of enhanced subsidies set to expire at the end of December.

A Democratic senator, speaking anonymously, emphasized that any potential political advantage from continuing the shutdown will soon be outweighed by the harm inflicted on ordinary Americans, including those relying on food banks and federal employees. A key factor in this assessment is the imminent expiration of Supplemental Nutrition Assistance Program (SNAP) benefits on Saturday, which threatens food security for 42 million Americans.

Democratic senators believe that the public is now aware that Republicans have declined to extend health insurance subsidies, and fears that the shutdown’s consequences will worsen are pushing them to seek a face-saving resolution next week. Senator Michael Bennet (D-Colo.) stated that Republicans have effectively won their battle to raise Americans’ health care costs by refusing to extend ObamaCare tax credits. He added that Democrats have achieved a measure of success by demonstrating their commitment to health care access for all Americans.

Some Democratic senators privately speculate that a strong performance in the upcoming gubernatorial elections in New Jersey and Virginia could provide a political victory and allow them to finalize the government reopening plan. Virginia, a key state for the 2026 Senate elections, is home to roughly 140,000 federal employees.

Senate Democratic Whip Dick Durbin (Ill.) noted that voters are “well aware” their health insurance premiums will rise in 2026, partly due to Republicans’ refusal to extend ACA enhanced subsidies. Another factor influencing Democrats is pressure from the American Federation of Government Employees (AFGE), which represents 820,000 federal and D.C. government employees, calling for a “clean” continuing resolution to reopen the government.

Senate Majority Leader John Thune (R-S.D.) told reporters that moderate Democrats are looking for an “off-ramp” to end the shutdown, and he is open to discussing the concessions he has already offered. Specifically, Thune promised to negotiate ACA subsidy extensions once the government reopens and even allow Democrats to vote on their own proposal to extend these tax credits beyond December. However, he reaffirmed that he will not negotiate specific health care policy changes while the government remains closed.

Moderate Republican Senator Lisa Murkowski (Alaska) said bipartisan negotiations to end the shutdown have gained momentum this week as the SNAP benefits expiration approaches. She noted that the outstanding issues have been thoroughly discussed and that it is possible to outline a pathway to reopen the government next week. Senator Jeanne Shaheen (D-N.H.), a key centrist working with Republicans on compromise measures, confirmed that recent discussions have been constructive.

Senator Gary Peters (D-Mich.), another centrist involved in negotiations, stated that discussions continue, though he declined to provide details on progress. Acknowledging the financial strain on hundreds of thousands of federal employees, Peters proposed a plan to compensate all workers for missed paychecks during the shutdown.

Earlier we wrote that U.S. Government Shutdown Hits 22 Days: Senate Democrats Block Twelfth Republican Effort.

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