Health care

Senate Democrats, holding out for healthcare, ready to reject government funding bill for 10th time

Senate Democrats are poised for the 10th time Thursday to reject a stopgap spending bill that would reopen the government, insisting they won’t back away from demands that Congress take up healthcare benefits.

The repetition of votes on the funding bill has become a daily drumbeat in Congress, underscoring how intractable the situation has become. It has been at times the only item on the agenda for the Senate floor, while House Republicans have left Washington altogether. The standoff has lasted over two weeks, leaving hundreds of thousands of federal workers furloughed, even more without a guaranteed payday and Congress essentially paralyzed.

“Every day that goes by, there are more and more Americans who are getting smaller and smaller paychecks,” said Senate Majority Leader John Thune, adding that there have been thousands of flight delays across the country as well.

Thune, a South Dakota Republican, again and again has tried to pressure Democrats to break from their strategy of voting against the stopgap funding bill. It hasn’t worked. And while some bipartisan talks have been ongoing about potential compromises on healthcare, they haven’t produced any meaningful progress toward reopening the government. Thune has also offered to hold a later vote on extending subsidies for health plans offered under Affordable Care Act marketplaces, but said he would not “guarantee a result or an outcome.”

Democrats say they won’t budge until they get a guarantee on extending the tax credits for the health plans. They warn that millions of Americans who buy their own health insurance — such as small business owners, farmers and contractors — will see large increases when premium prices go out in the coming weeks. Looking ahead to a Nov. 1 deadline in most states, they think voters will demand that Republicans enter into serious negotiations.

“The ACA crisis is looming over everyone’s head, and yet Republicans seem ready to let people’s premiums spike,” said Senate Democratic leader Chuck Schumer in a floor speech.

Still, Thune was also trying a different tack Thursday with a vote to proceed to appropriations bills — a move that could grease the Senate’s gears into some action or just deepen the divide between the two parties.

A deadline for subsidies on health plans

Democrats have rallied around their priorities on healthcare as they hold out against voting for a Republican bill that would reopen the government. Yet they also warn that the time to strike a deal to prevent large increases for many health plans is drawing short.

When they controlled Congress during the pandemic, Democrats boosted subsidies for Affordable Care Act health plans. It pushed enrollment under President Obama’s signature healthcare law to new levels and drove the rate of uninsured people to a historic low. Nearly 24 million people currently get their health insurance from subsidized marketplaces, according to healthcare research nonprofit KFF.

Democrats — and some Republicans — are worried that many of those people will forgo insurance if the price rises dramatically. While the tax credits don’t expire until next year, health insurers will soon send out notices of the price increases. In most states, they go out Nov. 1.

Sen. Patty Murray, the top Democrat on the Senate Appropriations Committee, said she has heard from “families who are absolutely panicking about their premiums that are doubling.”

“They are small business owners who are having to think about abandoning the job they love to get employer-sponsored healthcare elsewhere or just forgoing coverage altogether,” she added.

Murray also said that if many people decide to leave their health plan, it could have an effect across medical insurance because the pool of people under health plans will shrink. That could result in higher prices across the board, she said.

Some Republicans have acknowledged that the expiration of the tax credits could be a problem and floated potential compromises to address it, but there is hardly a consensus among the GOP.

House Speaker Mike Johnson (R-La.) this week called the COVID-era subsidies a “boondoggle,” adding that “when you subsidize the healthcare system and you pay insurance companies more, the prices increase.”

President Trump has said he would “like to see a deal done for great healthcare,” but has not meaningfully weighed in on the debate. And Thune has insisted that Democrats first vote to reopen the government before entering any negotiations on healthcare.

If Congress were to engage in negotiations on significant changes to healthcare, it would likely take weeks, if not longer, to work out a compromise.

Votes on appropriations bills

Meanwhile, Senate Republicans are setting up a vote Thursday to proceed to a bill to fund the Defense Department and several other areas of government. This would turn the Senate to Thune’s priority of working through spending bills and potentially pave the way to paying salaries for troops, though the House would eventually need to come back to Washington to vote for a final bill negotiated between the two chambers.

It could also put a crack in Democrats’ resolve. Thune said Thursday, “If they want to stop the defense bill, I don’t think it’s very good optics for them.”

It wasn’t clear whether Democrats would give the support needed to advance the bills. They discussed the idea at their luncheon Wednesday and emerged saying they wanted to review the Republican proposal and make sure it included appropriations that are priorities for them.

While the votes will not bring the Senate any closer to an immediate fix for the government shutdown, it could at least turn their attention to issues where there is some bipartisan agreement.

Still, there was a growing sense on Capitol Hill that an end to the stasis is nowhere in sight.

“So many of you have asked all of us, how will it end?” said House Speaker Johnson. “We have no idea.”

Groves and Jalonick write for the Associated Press.

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At the center of shutdown fight, healthcare is one of the most intractable issues in Congress

Democrats believe healthcare is an issue that resonates with a majority of Americans as they demand an extension of subsidies for their votes to reopen the shuttered U.S. government. But it is also one of the most intractable issues in Congress — and a real compromise is unlikely to be easy, or quick.

There are some Republicans in Congress who want to extend the higher subsidies, which were first put in place in 2021 amid the COVID-19 pandemic, as millions of people who receive their insurance through the Affordable Care Act marketplaces are set to receive notices that their premiums will increase at the beginning of the year. But many GOP lawmakers are strongly opposed to any extension — and see the debate as a new opportunity to cut back on the program altogether.

“If Republicans govern by poll and fail to grab this moment, they will own it,” wrote Texas Rep. Chip Roy, a Republican, in a letter published in the the Wall Street Journal over the weekend. He encouraged senators not to go “wobbly” on the issue.

“The jig is up, the pandemic is over and my colleagues shouldn’t blink in any other direction,” Roy wrote.

Republicans have been railing against the Affordable Care Act, former President Obama’s signature healthcare law, since it was enacted 15 years ago. But while they have been able to chip away at it, they have not been able to substantially alter it as a record 24 million people are now signed up for insurance coverage through the ACA, in large part because billions of dollars in subsidies have made the plans more affordable for many people.

Now, some of them see the Democrats’ fight as their chance to revisit the issue — putting Republican congressional leaders and President Trump in a complicated position as the government shutdown enters its seventh day and hundreds of thousands of federal workers are going unpaid.

“I am happy to work with Democrats on their Failed Healthcare Policies, or anything else, but first they must allow our Government to reopen,” Trump wrote on social media Monday night, walking back earlier comments saying there were ongoing negotiations with Democrats.

Senate Majority Leader John Thune (R-S.D.) has repeatedly indicated that Republicans are open to extending the subsidies, with reforms, if Democrats would reopen the government. But he has refused to negotiate until that happens — and has suggested Trump will be key to the eventual outcome.

Thune told reporters Monday “there may be a path forward” on ACA subsidies, but stressed, “I think a lot of it would come down to where the White House lands on that.”

Many GOP senators argue the only path forward is to overhaul the law. “The whole problem with all of this is Obamacare,” said Florida Sen. Rick Scott.

Most House Republicans agree, and House Speaker Mike Johnson has been noncommittal on discussions.

“Obamacare is not working,” Johnson said Sunday on NBC’s “Meet the Press.” “We’re trying to fix it.”

Democrats believe that public sentiment is on their side and argue that Trump and Republicans will have to come to the negotiating table as people who are enrolled in the program, many of whom live in Republican districts and states, are notified that their rates will increase.

“All I can tell you is the American people feel very deeply about solving this healthcare crisis,” Schumer said after the Senate rejected a House-passed bill to reopen the government for the fifth time Monday evening. “Every poll we have seen shows they want us to do it, and they feel that the Republicans are far more responsible for the shutdown than we are.”

Bipartisan talks face difficulties

With leaders at odds, some rank-and-file senators in both parties have been in private talks to try to find a way out of the shutdown. Republican Sen. Mike Rounds of South Dakota has suggested extending the subsidies for a year and then phasing them out. Senate Appropriations Committee Chairwoman Susan Collins (R-Maine) has suggested pushing ahead with a group of bipartisan spending bills that are pending and a commitment to discuss the healthcare issue.

But many Democrats say a commitment isn’t good enough, and Republicans say they need deeper reforms — leaving the talks, and the U.S. government, at a standstill.

Maine Sen. Angus King, an Independent who caucuses with Democrats, voted with Republicans to keep the government open. But he said Monday that he might switch his vote to “no” if Republicans do not “offer some real solid evidence that they are going to help us with this crisis” on healthcare.

Republican Sen. Markwayne Mullin of Oklahoma said his party is “not budging,” however. “First and foremost, before we can talk about anything, they need to reopen the government.”

Some Republicans urge action on healthcare

Still, some Republicans say they are open to extending the subsidies — even if they don’t like them — as it becomes clear that their constituents will face rising costs.

“I’m willing to consider various reforms, but I think we have to do something,” said Republican Sen. Josh Hawley of Missouri. He said Congress should address the issue “sooner rather than later” before open enrollment begins Nov. 1.

Rep. Marjorie Taylor Greene (R-Ga.) said she is “not a fan” of Obamacare but indicated she might vote to extend it.

“I’m going to go against everyone on this issue because when the tax credits expire this year my own adult children’s insurance premiums for 2026 are going to DOUBLE, along with all the wonderful families and hard-working people in my district,” she posted on social media Monday evening.

Jalonick writes for the Associated Press. AP writers Lisa Mascaro, Matt Brown, Kevin Freking, Stephen Groves and Joey Cappalletti contributed to this report.

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Both sides dig in ahead of threatened government shutdown

Washington is barreling toward a government shutdown Tuesday night, with few signs of an off-ramp as Democrats and Republicans dig in for a fight over government spending.

Democratic leadership on Capitol Hill is insisting on an extension of Affordable Care Act tax credits as part of a package to fund the government. At least seven Democratic votes are needed in the Senate to pass a seven-week stopgap bill that cleared the House last week.

But Republican lawmakers and the White House have dismissed the proposal, with senior officials in the Trump administration threatening to use unique legal authorities granted during a government shutdown to conduct yet more mass firings of federal workers.

Bipartisan congressional leadership met with President Trump at the White House on Monday afternoon in a last-minute effort to avert the crisis. But neither side exited the meeting with expectations of a breakthrough. On the contrary, Republican leaders in the House told the GOP caucus to plan to return to work next week and said they would hold a news conference on Wednesday anticipating the government’s closure.

“We are not going to support a partisan Republican spending bill that continues to gut the healthcare of everyday Americans, period, full stop,” House Minority Leader Hakeem Jeffries (D-N.Y.) said Monday.

House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer talk to reporters outside the White House.

House Minority Leader Hakeem Jeffries and Senate Minority Leader Chuck Schumer talk to reporters outside the White House.

(Alex Brandon / Associated Press)

Vice President JD Vance said he thought the country was “headed to a shutdown,” labeling Democratic calls for healthcare tax credits an “absurd” demand that amounts to an “excuse for shutting down the people’s government.”

“You don’t use your policy disagreements as leverage to not pay our troops,” Vance said. “That’s exactly what they’re proposing out there.”

When the government shuts down, the law requires all nonessential government services to cease, requiring most federal workers to go on furlough or work without pay. Essential services — such as national security functions and air traffic control — are not affected.

Ahead of the meeting, Trump told reporters he hoped Democrats would agree to “keeping our country open,” before proceeding to criticize their proposals.

“They’re going to have to do some things, because their ideas are not very good ones,” Trump said. “They’re very bad for our country. So we’ll see how that works out.”

But Senate Minority Leader Chuck Schumer (D-N.Y.) said he thought his message was beginning to resonate with the president after their meeting Monday afternoon.

“We have very large differences, on healthcare, and on their ability to undo whatever budget we agree to, through rescissions and through impoundment,” Schumer said. “I think for the first time, the president heard our objections and heard why we needed a bipartisan bill. Their bill has not one iota of Democratic input. That is never how we’ve done this before.”

“We’ve made to the president some proposals,” Schumer added. “Ultimately, he’s a decision-maker.”

Schumer faced widespread ridicule from within his party in March after reversing course during the last showdown, choosing then to support the Trump administration’s continuing resolution to fund the government at the height of an aggressive purge of the federal workforce.

At that point, Schumer feared a shutdown could accelerate the firings. But Schumer is now defiant, despite the renewed threat of layoffs, after the White House Office of Management and Budget circulated a memo last week directing federal agencies to relieve workers on discretionary projects that lose funding after Oct. 1.

“This is an attempt at intimidation,” Schumer said in response to the memo. “Donald Trump has been firing federal workers since day one — not to govern, but to scare. This is nothing new and has nothing to do with funding the government.”

Vice President JD Vance talks to reporters as House Speaker Mike Johnson and Senate Majority Leader John Thune listen.

Vice President JD Vance talks to reporters as House Speaker Mike Johnson and Senate Majority Leader John Thune listen.

(Alex Brandon / Associated Press)

Still, Schumer began gauging his caucus Monday afternoon on the prospects of a continuing resolution that would in effect delay a shutdown by a week, briefly extending government funding in order to continue negotiations.

Betting markets had chances of a shutdown soaring above 70% by the end of the day on Monday.

Speaking to Fox News on Monday, Karoline Leavitt, the White House press secretary, said the president’s position was “the reasonable and commonsense thing to do,” calling on Democrats to continue funding to the military and its veterans.

“All we are asking for is a commonsense, clean funding resolution — a continuing resolution — to keep the government open,” Leavitt said. “This is a bill that keeps the government funded at the exact same levels as today, just adjusted for inflation.”

“So there is zero good reason for the Democrats to vote against this,” she added. “The president is giving Democrat leadership one last chance to be reasonable.”

But Jeffries dismissed Leavitt as “divorced from reality” in a podcast interview.

“In what world will any rational American conclude, after we’ve been lectured throughout the year about this so-called mandate that the Republican Party has in this country, and their complete control of government in Washington, that because Democrats are unwilling to gut the healthcare of the American people as part of the Republican healthcare crisis, that it’s us shutting the government down?” Jeffries said.

“Nobody’s buying that,” he continued, “outside of the parts of the MAGA base who basically, seemingly, will buy anything that Donald Trump has to peddle.”

Senate Majority Leader John Thune (R-S.D.) said he would call a vote on funding the government Tuesday afternoon.

“This is purely and simply hostage-taking,” Thune said Monday. Whether it passes or fails, he said, is “up to the Democrats.”

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House GOP grinds ahead with Trump’s tax-cut bill

House Republicans are pushing to vote on their multitrillion-dollar tax breaks package as soon as Wednesday, grinding out last-minute deal-making to shore up wavering GOP support and deliver on President Trump’s top legislative priority.

Trump himself had instructed the Republican majority to quit arguing and get it done, his own political influence on the line. But GOP leaders worked late into the night to convince skeptical Republicans who have problems on several fronts, including worries that it will pile onto the nation’s $36-trillion debt.

A fresh analysis from the Congressional Budget Office said the tax provisions would increase the federal deficit by $3.8 trillion over the decade, while the changes to Medicaid, food stamps and other services would tally $1 trillion in reduced spending. The lowest-income households in the U.S. would see their resources drop, while the highest ones would see a boost, the CBO said.

Republicans hunkered down at the Capitol through the night for one last committee hearing processing changes to the package. Democrats immediately motioned to adjourn, but the vote failed on party lines.

“President Trump’s ‘one, big, beautiful bill’ is going to require one, big, beautiful vote,” said Speaker Mike Johnson (R-La.). “We are going to get this done.”

It’s a make-or-break moment for the president and his party in Congress, who have invested much of their political capital during the crucial first few months of Trump’s return to the White House on this package. If the House Republicans fall in line with the president, overcoming unified Democratic objections, the package would next go to the Senate.

The package comes at a daunting time as the U.S. economy faces uncertainty. Democratic Leader Hakeem Jeffries said Republicans are trying to “quickly jam this unpopular legislation through the House because they know that the longer they wait, the more will come to light about this cruel and unconscionable bill.”

At its core, the sprawling 1,000-plus-page bill is centered on extending the tax breaks approved during Trump’s first term in 2017, while adding new ones he campaigned on during the 2024 presidential campaign.

To make up for some of the lost revenue, the Republicans are focused on spending cuts to federal safety net programs and a massive rollback of green energy tax breaks from the Biden-era Inflation Reduction Act.

Additionally, the package tacks on $350 billion in new spending — with about $150 billion going to the Pentagon, including for the president’s new “ Golden Dome” defense shield, and the rest for Trump’s mass deportation and border security agenda.

The package title carries Trump’s own words, the “One Big Beautiful Bill Act.”

As Trump promised voters on the tax front, the package proposes there would be no taxes on tips for certain workers, including those in some service industries; automobile loan interest; or some overtime pay.

There would also be an increase to the standard income tax deduction, to $32,000 for joint filers, and a boost to the child tax credit to $2,500. There would be an enhanced deduction, of $4,000, for seniors of certain income levels, to help defray taxes on Social Security income.

To cut spending, the package would impose new work requirements for many people who receive health care through Medicaid, with able-bodied adults without dependents needing to fulfill 80 hours a month on a job or in other community activities.

Similarly, those who receive food stamps through the Supplemental Nutritional Assistance Program, known as SNAP, would also face new work requirements.

Older Americans up to age 64, rather than 54, who are able-bodied and without dependents would need to work or engage in the community programs for 80 hours a month. Additionally, some parents of children older than 7 years old would need to fulfill the work requirements; under current law, the requirement comes after children are 18.

Republicans said they want to root out waste, fraud and abuse in the federal programs.

The Congressional Budget Office has estimated 8.6 million fewer people would have health insurance with the various changes to Medicaid and the Affordable Care Act. It also said 3 million fewer people each month would have SNAP benefits.

Republicans have been racing to finish up the package by Memorial Day, a deadline imposed by Johnson as he tries to overcome objections within his own ranks.

Conservatives are insisting on quicker, steeper cuts to federal programs to offset the costs of the trillions of dollars in lost tax revenue. GOP leaders have sped up the start date of the Medicaid work requirements from 2029 to 2027.

At the same time, more moderate and centrist lawmakers are wary of the changes to Medicaid that could result in lost health care for their constituents. Others are worried the phaseout of the renewable energy tax breaks will impede businesses using them to invest in green energy projects in many states.

Plus, a core group of lawmakers from New York, California and other high-tax states want a bigger state and local tax deduction, called SALT, for their voters back home.

As it stands, the bill would triple what’s currently a $10,000 cap on the state and local tax deduction, increasing it to $30,000 for joint filers with incomes up to $400,000 a year. They have proposed a deduction of $62,000 for single filers and $124,000 for joint filers.

Trump has been pushing hard for Republicans to unite behind the bill, which has been uniquely shaped in his image, and he said after meeting with House lawmakers privately Tuesday at the Capitol that anyone who doesn’t support the bill would be a “fool.”

But it’s not at all clear that Trump, who was brought in to seal the deal, changed minds.

One of the conservative Republicans, Rep. Thomas Massie of Kentucky, said afterward he’s still a no vote.

“We’re still a long ways away,” said Rep. Andy Harris (R-Md.), chair of the House Freedom Caucus.

The Committee for a Responsible Federal Budget, a nonpartisan fiscal watchdog group, estimates that the House bill is shaping up to add roughly $3.3 trillion to the debt over the next decade.

Mascaro, Freking, Askarinam and Cappelletti write for the Associated Press.

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