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.
Schumer’s proposal calls for Democrats to agree to pass a so-called clean resolution that 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 existing enhanced tax credits that are used to reduce the cost of health insurance purchased on ACA marketplaces.
The other leg of the deal calls for the establishment of a bipartisan committee to continue negotiations on long-term reforms to address the issue of health-care affordability.
U.S. Senate Minority Leader Chuck Schumer (D-NY) speaks at a press conference following the weekly policy luncheon, more than a month into the ongoing U.S. government shutdown on Capitol Hill in Washington, D.C., U.S., Nov. 4, 2025.
Annabelle Gordon | Reuters
Schumer’s offer drops the long-standing Democratic demand that the short-term funding resolution include an extension of the enhanced ACA subsidies, which are due to expire at the end of December. The boosted subsidies, which went into effect during the Covid-19 pandemic, are used by more than 20 million Americans.
The Democrats’ stance on the ACA credits has prevented a Republican House bill that does not extend the credits from reaching the 60 votes it needs to pass in the Senate.
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 … and then have the opportunity to start negotiating longer-term solutions to health care costs,” Schumer said.
A person familiar with the Republican position told CNBC that Schumer’s offer is likely to be rejected.
“Democrats offered this privately weeks ago and was rejected,” that person said. “Today’s stunt is an admission by democrats that it’s time to end the shutdown they started.”
A White House official told CNBC, “Democrats are making clear they’re holding the American people hostage for other spending. This is a huge climbdown from their initial position and shows they’re under massive internal pressure.”
The office said that House Minority Leader Hakeem Jeffries, D-N.Y., “indicated that he would never accept something like this so it’s a sharp break from House Democrats.”
“Ultimately, Democrats should reopen the government today and the Administration will meet with them on the tax credit and work with them on it,” the official said.
— CNBC’s Emily Wilkins contributed to this story.
