Dems accept shutdown deal without ACA guarantee
Add Axios as your preferred source to
see more of our stories on Google.
Senate Minority Leader Chuck Schumer. Photo: Tom Brenner/Getty Images
Enough Senate Democrats are poised to accept a deal to reopen the government without a concrete agreement to extend Affordable Care Act subsidies — but with the promise of a showdown vote on the assistance next month.
Why it matters: If a bill to temporarily fund the government passes this week, it would be a relief for much of the country but a major letdown for many Democrats who made ACA financial assistance a centerpiece of the shutdown fight.
Driving the news: The promised Senate vote on the ACA, on a bill of Democrats' choosing, is set to occur by the end of the second week in December, per a source familiar.
- That sets up a crucial period during which senators could delink the enhanced tax credits from government funding and try to reach a deal on eligibility changes that are more acceptable to Republicans.
- The source, speaking on the condition of anonymity because of the sensitivity of discussions, said Democrats will "move swiftly" to take Republicans up on their pledges to negotiate once the government is reopened "and hold them accountable in the public eye if they refuse to engage in good faith."
But an ACA deal still faces difficult odds, especially now that President Trump has weighed in against an extension and proposed sending the money directly to consumers to spend on health care as they chose.
Between the lines: The decision by eight moderate senators — including Jeanne Shaheen (D-N.H.), Maggie Hassan (D-N.H.), Tim Kaine (D-Va.) and Angus King (I-Maine) — to support reopening the government without concrete action on the subsidies prompted blowback from other Democrats.
- "That's not a deal. It's an unconditional surrender that abandons the 24 million Americans whose health care premiums are about to double," Rep. Ritchie Torres (D-N.Y.) wrote on X.
- House Democratic Leader Hakeem Jeffries said he is also opposed to the agreement, saying any government funding deal must extend the ACA tax credits. Senate Minority Leader Chuck Schumer also told reporters he would vote no.
The emerging agreement includes a temporary bill to fund the government into late January as well as a package of three full-year spending bills, designed to show progress through the annual appropriations process.
- On Sunday night, the Senate voted 60-40 to advance a procedural motion on the deal, with the eight Democrats in favor.
- The full-year spending bills include one to fund the Food and Drug Administration.
- Even if the Senate backs extending the subsidies, Speaker Mike Johnson has not given a similar commitment for a House vote.
Yes, but: There are some vulnerable Republicans in both chambers who support action on the subsidies, if there are changes like capping the income of eligible recipients or anti-fraud measures.
- Republicans in tight reelection races are wary of the prospect of ACA premiums more than doubling in an election year.
