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1h ago

Shutdown Stalemate Deepens as Senate Again Fails on Dueling Bills Over ACA Subsidies

Missed paychecks now loom as the administration questions back pay.

Mike Johnson and Joe Scarborough.
Senate Minority Leader Chuck Schumer, D-N.Y., speaks to reporters following the weekly Senate policy luncheon on Capitol Hill in Washington, Tuesday, Oct. 7, 2025. (AP Photo/Allison Robbert)
U.S. Capitol building at sunset
A general view of the U.S. Capitol from downtown Washington during the continuing partial federal government shutdown on Capitol Hill in Washington, D.C., U.S., October 8, 2025. REUTERS/Jonathan Ernst

Overview

  • For the sixth time, senators fell short of the 60 votes needed, rejecting a GOP stopgap 54–45 and a Democratic plan with a permanent ACA tax credit extension 47–52.
  • The House remains in recess as Speaker Mike Johnson resists a stand-alone military pay bill, with the first missed active-duty payday approaching Oct. 15.
  • Democratic leaders refuse a one-year extension of enhanced ACA tax credits, while a bipartisan bill (H.R. 5145) draws co-sponsors but is labeled a nonstarter by Hakeem Jeffries.
  • Republican unity shows strain as Marjorie Taylor Greene, Josh Hawley and Thom Tillis signal openness to extending the credits, even as leaders insist talks wait until after reopening.
  • OMB has withheld roughly $28–30 billion and floated limits on back pay while unions seek court intervention, as KFF projects steep premium increases if the enhanced credits lapse, with reported estimates ranging from more than 75% on average to about 114%.