Senate Democrats Push for ACA Subsidy Extension Amid Government Shutdown Deadlock

By Mark Swanson | Friday, 07 November 2025 03:48 PM EST

Senate Minority Leader Chuck Schumer, D-N.Y., on Friday outlined Democrats’ latest demand to resolve the 38-day government shutdown: a one-year extension of Obamacare subsidies. Speaking on the Senate floor, Schumer proposed simultaneous votes to reopen the government and extend expiring tax credits while establishing a bipartisan panel to review Republican proposals for Affordable Care Act (ACA) reforms.

“Democrats are ready to quickly pass a government funding bill that includes health care affordability,” Schumer said. “Leader [John] Thune just needs to add a clean, one-year extension of the ACA tax credits to the CR so we can immediately address rising healthcare costs.” He emphasized, “That’s not a negotiation. It’s an extension of current law, something we do all the time around here.”

Thune, R-S.D., dismissed Schumer’s proposal as a “nonstarter” but acknowledged it as “progress,” stating it still “doesn’t get anywhere close to what we need to do here.” The shutdown has disrupted food aid, federal worker pay, and air travel nationwide, with Republicans resisting renewal of ACA subsidies without reforms.

Thune urged Democrats to “end these weeks of misery,” citing openness to a bipartisan funding plan—pending government reopening. He suggested, “With reforms, we can get something done.” Republican leaders are preparing a stopgap funding package to reopen veterans’ programs, food assistance, and congressional operations while extending spending through early 2026.

Thune indicated the Senate could remain in session over the weekend, with a test vote expected as early as Friday. Former President Donald Trump has pressed Republicans to end the standoff, advocating for elimination of the Senate filibuster to pass a GOP-backed bill without Democratic support. “We’d be back to work within 10 minutes after that vote,” Trump said.

Democrats face internal divisions, with moderates like Sen. Jeanne Shaheen, D-N.H., discussing a compromise guaranteeing future ACA subsidy votes rather than an immediate extension. Progressives reject this as insufficient, while Sen. Brian Schatz, D-Hawaii, warned, “Without something on healthcare, the vote is very unlikely to succeed.”

House Speaker Mike Johnson, R-La., has avoided commitments, stating, “I’m not promising anybody anything.” Negotiators are also considering language to restore back pay for furloughed workers and reverse some White House firings during the shutdown. Sen. Susan Collins, R-Maine, confirmed these talks are ongoing.

Schumer and House Democrat Leader Hakeem Jeffries, D-N.Y., have called for direct talks with Trump, though such a meeting appears unlikely. Jeffries has maintained Democrats will hold out until Republicans agree to make ACA tax credits permanent.