Top Senate Democrat Chuck Schumer on Friday proposed a new plan to Republican lawmakers that would allow the U.S. government to reopen from the shutdown that began on October 1.
But Republicans quickly rejected Schumer’s proposal.
The deal hinges on Democrats dropping their request to include a long-term extension of ACA tax credits in a stopgap government funding bill, in exchange for protecting the Affordable Care Act’s enhanced subsidies for at least a year.
“I think Sen. Schumer’s demands are ridiculous and amount to political hostage to continue his bad policies,” South Carolina Republican Sen. Lindsey Graham said in a post on X.
“We should not be forced to continue funneling taxpayer dollars to health insurance companies under Obamacare in exchange for opening up the government,” Graham said.
“My no vote would be a clear rejection of Sen. Schumer’s very bad idea.”
Mr. Schumer’s proposal requires Democrats to agree to pass a so-called clean resolution that would provide short-term funding for government operations. Instead, Republicans would agree to a separate one-year extension of the ACA credits, the New York lawmaker said.
Another part of the agreement calls for the creation of a bipartisan commission to continue negotiations on long-term reforms to address health care affordability issues.
The proposal comes as millions of Americans who purchase Obamacare health insurance plans face much higher premiums in 2026 because the prices of those plans do not include the enhanced ACA tax credit.
These increased subsidies, which are used by more than 20 million Americans, will expire at the end of December unless Congress extends them.
U.S. Senate Minority Leader Chuck Schumer (D-N.Y.) speaks during a press conference after the weekly policy luncheon, more than a month into the ongoing U.S. government shutdown, at the U.S. Capitol in Washington, DC, on November 4, 2025.
Annabelle Gordon Reuter
Mr. Schumer’s proposal would reverse a longstanding Democratic demand to address ACA subsidies in funding resolutions.
Democrats’ stance prevented a Republican House bill that did not extend the credits from reaching the 60 votes needed to pass the Senate.
Republicans insist that the question of the fate of the ACA credits will be decided after a “clean” funding bill is passed.
Republicans hold 53 seats in the Senate. There are 45 Democratic senators and two independents who caucus with them.
“Democrats say we have to deal with the health care crisis, but Republicans have repeatedly said they won’t negotiate lower health care costs until the government reopens,” Schumer said on the Senate floor Friday afternoon.
“So let’s find a way to respect both sides,” the minority leader said.
“So we want to offer a simple proposal that simultaneously reopens the government and extends the ACA Premium Tax Credit, and we want an opportunity to start negotiating a long-term solution to health care costs,” Schumer said.
“This proposal will reopen the government and ensure that working families currently shopping for health insurance receive financial relief while open enrollment begins,” he said.
Schumer added that insurers “can renew premiums after a simple extension of the tax credit is passed.”
Senate Majority Leader John Thune (R.S.D.) rejected Schumer’s proposal as a “non-starter.”
“They know that the previous proposal was unscrupulous and unrealistic… so this is progress,” Thun told reporters. “But I don’t think that comes close to what we need to do here.”
“Democrats made a private proposal several weeks ago, but it was rejected,” a source familiar with the Republican Party’s position told CNBC.
“Today’s stunt is an admission that it’s time to end the shutdown that Democrats started.”
“Democrats are making it clear that they are holding the American people hostage for other spending. This is a significant retreat from their original position and shows that Democrats are under significant pressure from within,” a White House official told CNBC.
The official said House Minority Leader Hakeem Jeffries of New York “has indicated that he will never accept something like this, and this is a significant break with House Democrats.”
“Ultimately, Democrats should reopen the government today, and the administration intends to meet and work with them on tax credits,” the official said.
Numerous polls show that more Americans blame President Trump and the Republican Party than Democrats for the government shutdown.
Three days before Mr. Schumer introduced his new proposal, Democratic candidates swept key races in New York City, New Jersey and Virginia.
President Donald Trump acknowledged Wednesday that the low turnout was bad for the Republican Party.
President Trump said the government shutdown is seen as a “huge negative factor for the Republican Party.”
