Senate Republicans reject Democrat deal to reopen government

Top Senate Democrat Chuck Schumer on Friday offered a new plan to Republican lawmakers that would allow the U.S. government to reopen from a shutdown that began Oct. 1.

But Republicans quickly dismissed Schumer’s proposal, which hinges on protecting enhanced Affordable Care Act subsidies for at least one year. In exchange, Democrats would drop their demand that a longer-term extension of ACA tax credits be included in a stopgap government funding bill.

“I find Senator Schumer’s demands ridiculous and equivalent to political hostage taking to continue bad policy,” Sen. Lindsey Graham, a South Carolina Republican, said in a post on X.

“We should not be made to continue flooding health insurance companies with taxpayer dollars under Obamacare as the price to open up the government,” Graham said.

“My no vote will be an unequivocal rejection of Senator Schumer’s very bad idea.”

Schumer’s proposal calls for Democrats to agree to pass the GOP’s so-called clean resolution, which would provide short-term funding for government operations.

In exchange, the New York lawmaker said, Republicans would agree to a separate one-year extension of ACA credits, and to create a bipartisan committee to continue negotiations to address health-care affordability.

The offer comes as millions of Americans who buy Obamacare health insurance plans are being confronted with much higher premiums for 2026 coverage because the prices of those plans do not include the discount they would get from enhanced ACA tax credits.

Those boosted subsidies, which are used by more than 20 million Americans, are due to expire at the end of December if Congress does not extend them.

Senate Democrats, since before the shutdown began, had until Friday insisted that any funding resolution extend the ACA subsidies.

That stance prevented a Republican-backed House funding bill that does not extend the credits from getting the 60 votes that it needs to pass the Senate.

Republicans say that the question of retaining the credits must be settled only after a “clean” funding bill is passed.

The GOP holds 53 seats in the Senate. There are 45 Democratic senators, and two independents who caucus with them.

“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 on the Senate floor on Friday afternoon.

“So let’s find a path to honor both positions,” the minority leader said.

“Therefore, we’d like to offer a simple proposal that would reopen the government and extend the ACA premium tax credits simultaneously…