Shutdown Day 40: Senate Weekend Push for Deal

by mark.thompson business editor

Government Shutdown Enters 40th Day as healthcare Subsidies Become Key Sticking Point

The ongoing federal government shutdown reached a critical juncture Sunday, stretching into its 40th day with no immediate resolution in sight. disruptions to essential services, including air travel and food assistance programs, continue to impact millions of Americans as senators engage in a grueling weekend session attempting to bridge a widening partisan divide.

The Senate has demonstrated limited progress despite the urgency of the situation. Republican leadership is aiming to secure votes on a series of bills designed to partially reopen the government, but these efforts are complicated by a dispute over funding for the Affordable Care Act (ACA) marketplace. Democratic leaders are aggressively advocating for a continuation of these subsidies, while Republicans have thus far resisted the effort. A potential compromise is emerging from a group of moderate Democrats, who propose ending the shutdown in exchange for a subsequent vote on the “Obamacare” subsidies, which are crucial for maintaining affordable healthcare coverage.

For individuals currently enrolled in ACA exchanges, the lapse of these enhanced subsidies could lead to a dramatic increase in premiums, perhaps more than doubling costs next year. This prospect has intensified the pressure on lawmakers to find a solution.

Vermont Sen. Bernie Sanders, an independent who caucuses with Democrats, expressed skepticism about a pledge to hold a vote on the subsidies, calling it a “wasteful gesture” without a firm commitment from both the Speaker of the House and the President to support the measure.

President Donald Trump has signaled a reluctance to compromise, and has instead urged Republicans to eliminate the Senate’s filibuster rules – which require 60 votes to advance most legislation – to bypass Democratic opposition. This call was echoed by Vice President JD Vance, a former Ohio senator, who asserted in an online post Saturday that Republicans who support maintaining the filibuster are “wrong.” Though, Republican leaders have so far rejected Trump’s proposal, with Thune exploring a bipartisan package mirroring the moderate Democrats’ proposal.The specifics of any potential healthcare concessions from thune remain unclear.

Moderates, including Sen. jeanne Shaheen, D-N.H., are actively negotiating potential bills that would fund critical government functions – such as food aid, veterans programs, and the legislative branch – while extending overall funding through December or January. This agreement hinges on the promise of a future vote on healthcare, but does not guarantee an extension of the existing subsidies.

The viability of this plan remains uncertain, as even with a deal, Trump appears unlikely to support extending the health benefits. House Speaker mike Johnson, R-La.,has also refrained from committing to a vote on healthcare. Republican leaders require just five additional votes to secure funding, and the ongoing discussions involve a group of 10 to 12 Democratic senators.

Some republicans have indicated a willingness to consider extending the COVID-19-era tax credits,acknowledging the potential for premiums to skyrocket for millions. Though, they are seeking to impose new limitations on eligibility for these subsidies, advocating for a system where benefits are routed directly to individuals. “We’re going to replace this broken system with something that is actually better for the consumer,” Sen. Lindsey Graham, R-S.C., saeid.

The current impasse represents a critical choice for Democrats.A test vote on new legislation could occur within days,forcing them to decide whether to continue fighting for a thorough deal on extending the subsidies – potentially prolonging the shutdown – or to vote to reopen the government while relying on Republican promises of a future healthcare vote,an outcome that is far from assured.

Sen. Chuck Schumer, D-N.Y., reiterated Saturday that Republicans should agree to a one-year extension of the subsidies before any negotiations regarding the future of tax credits can begin. “Doing nothing is derelict because people will go bankrupt, people will lose insurance, people will get sicker,” Schumer warned in a floor speech. “That’s what will happen if this Congress fails to act.”

The shutdown, which began on October 1, has already seen democrats reject 14 previous funding bills passed by the House. The current proposed bill would only extend government funding until November 21.

___Associated Press writers Seung Min Kim, Joey Cappelletti, Mary Clare Jalonick and Lisa Mascaro contributed to this report.

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