WASHINGTON — On day 38 of the longest federal government shutdown in U.S. history, Senate Minority Leader Chuck Schumer (D-N.Y.) took to the Senate floor Friday to unveil a compromise aimed at breaking the impasse over funding and health care affordability. The proposal, which ties the reopening of the government to a one-year extension of enhanced Affordable Care Act (ACA) premium tax credits set to expire at the end of 2025, was swiftly dismissed by Republicans as a "nonstarter." The rejection deepened the partisan divide, leaving hundreds of thousands of federal workers unpaid, essential services strained, and millions of Americans facing uncertainty over rising health insurance costs.
Schumer, flanked by about 30 Democratic senators in a show of caucus unity, framed the offer as a pragmatic path forward. "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 declared. "So, let's find a path to honor both positions. We'd like to offer a simple proposal that would reopen the government and extend the ACA premium tax credits simultaneously, and then have the opportunity to start negotiating longer-term solutions to health care costs. Let's do all three."
The plan, crafted in part by Sen. Gary Peters (D-Mich.), calls for Democrats to support a "clean" continuing resolution (CR) for short-term government funding—potentially through mid-November—paired with a separate vote on extending the enhanced premium tax credits for one year. This extension would prevent an estimated 114% average increase in ACA marketplace premiums starting in 2026, affecting over 22 million enrollees who rely on the subsidies to cap their contributions at 8.5% of household income. Without it, low- and middle-income families could see monthly premiums jump from $88 to $189 on average, according to Kaiser Family Foundation analysis, with some households facing hikes exceeding $1,000 annually.
Schumer emphasized the proposal's flexibility, including the creation of a bipartisan committee to tackle broader health care reforms post-reopening. "Democrats are ready to clear the way to quickly pass a government funding bill that includes health care affordability," he added. "(Senate Majority) Leader (John) Thune just needs to add a clean one-year extension of the ACA tax credits to the CR so that we can immediately address rising health care costs. That's not a negotiation; it's an extension of current law." The minority leader's remarks came amid growing pressure from recent off-year elections, where Democrats notched significant wins, bolstering their resolve to link shutdown relief to ACA protections.
Republicans, however, wasted no time in torching the idea. Senate Majority Leader John Thune (R-S.D.) called it a "nonstarter" that "doesn't even get close" to resolving underlying spending disputes. In a statement to reporters, Thune acknowledged it as "progress" from Democrats' earlier demands for permanent extensions and Medicaid expansions but insisted it fell short of GOP priorities, including deeper cuts to discretionary spending. "I think it's an indication that they're feeling the heat," Thune said, referencing the shutdown's mounting toll.
The sharpest rebuke came from Sen. Lindsey Graham (R-S.C.), who labeled the proposal "terrible" and accused Democrats of "political terrorism." "Horrible. I'm not going to keep giving taxpayer dollars to the five largest health care insurance companies under Obamacare to get the government open," Graham fumed, echoing conservative critiques that the subsidies fuel inflation and enrich insurers rather than patients. Sen. John Kennedy (R-La.) piled on, dismissing it as "stupid," while Thune signaled the Senate would reconvene over the weekend for further votes on a GOP-backed funding bill.
The shutdown's origins trace back to Oct. 1, when fiscal year 2026 appropriations lapsed after House Republicans passed a stopgap bill that Democrats filibustered in the Senate over exclusions of ACA extensions. What began as a routine budget tussle has ballooned into a crisis eclipsing the 35-day 2018-2019 shutdown, with full appropriations halted across all non-essential federal operations—unlike prior partial closures. Over 1.4 million civilian federal employees remain furloughed or working without pay, alongside 1.3 million active-duty military personnel delayed on compensation. Back pay is guaranteed upon resolution, but the uncertainty has triggered a surge in food bank usage; military family pantries report 30-300% increases in demand.
Economic ripples are intensifying. Goldman Sachs estimates each week costs the U.S. $6-18 billion in lost output, with the 38-day mark already shaving 0.3% off fourth-quarter GDP growth. Air travel is in chaos: The Federal Aviation Administration (FAA) announced Friday it would slash flights at 30 major airports starting Nov. 7 due to unpaid air traffic controllers, leading to over 800 cancellations by midday. Transportation Secretary Sean Duffy warned of broader airspace closures if unresolved.
Nutrition programs are buckling under the strain. The Supplemental Nutrition Assistance Program (SNAP), serving 42 million low-income Americans, saw November benefits slashed to 50-65% after exhausting a $5 billion contingency fund, prompting lawsuits from over two dozen states. The Supreme Court temporarily blocked a full halt on Thursday, but distribution delays persist, with states like Missouri withholding aid for 650,000 residents and Louisiana imposing purchase restrictions on "unhealthy" items. The Women, Infants, and Children (WIC) program, aiding 7 million, teeters on emergency state funds that are depleting rapidly, risking clinic closures.
National parks, Smithsonian museums, and IRS tax processing have ground to a halt since early October, with Capitol tours canceled and veterans' services backlogged despite assurances of continuity. Small businesses feel the pinch too: The Small Business Administration froze $170 million in daily guaranteed loans on Oct. 1, stalling expansions amid holiday uncertainty. Economic data releases, including jobs reports and inflation metrics, are delayed, complicating Federal Reserve decisions on interest rates.
The ACA credits at the impasse's core were bolstered in 2021 via the American Rescue Plan and extended through 2025 by the Inflation Reduction Act, slashing premiums and boosting enrollment to 24.3 million—92% subsidized. Expiration would revert caps to pre-2021 levels (up to 9.83% of income for higher earners), potentially uninsured 3.5 million and shifting costs to employers or emergency care. CBO projects a $335 billion deficit reduction if lapsed, but at the expense of household budgets strained by inflation.
President Donald Trump amplified the drama Friday via Truth Social, blasting the stalemate as a "Democrat Shutdown" and urging the Senate to stay in session until resolved. "The United States Senate should not leave town until they have a Deal to end the Democrat Shutdown," he wrote. "If they can’t reach a Deal, the Republicans should terminate the Filibuster, immediately, and take care of our Great American Workers!" Trump's filibuster push, reiterated since Oct. 30, aims to drop the 60-vote threshold for passage, allowing a simple majority on funding. Yet, Thune and most GOP senators rebuffed it, citing long-term risks if Democrats regain control. "The votes aren’t there," Thune said, prioritizing the filibuster as a "bulwark against bad things."
As Thanksgiving nears, moderates on both sides whisper of off-ramps, but hardliners hold firm. White House economic adviser Kevin Hassett warned Friday the shutdown's impact is "far worse than expected," softening labor markets and holiday spending. With flights grounded, benefits cut, and premiums poised to soar, the cost of intransigence mounts daily. Whether Schumer's olive branch revives talks or entrenches the divide remains unclear, but one thing is certain: America's families can't afford much more delay.
