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4h ago

Shutdown Standoff Centers on ACA Subsidies as Republicans Weigh Conditions

Democrats are withholding votes to reopen the government until the expiring pandemic-era tax credits are guaranteed permanently.

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House Minority Leader Hakeem Jeffries, D-N.Y., and Senate Minority Leader Chuck Schumer of N.Y., talk to reporters outside the West Wing of the White House, Monday, Sept. 29, 2025, in Washington. (AP Photo/Alex Brandon)

Overview

  • Sen. Katie Britt said she is open to extending the subsidies if fraud safeguards and income caps are added, but she wants the government reopened first.
  • Senate Majority Leader John Thune said he offered Democrats a vote on the credits paired with restoring income limits for eligibility.
  • Democratic leaders, including Hakeem Jeffries, demand an ironclad commitment to a permanent extension and the reversal of Medicaid cutbacks before any funding deal.
  • Analysts warn of major fallout if the credits lapse, with KFF projecting premiums more than doubling next year and the Urban Institute estimating 7.3 million would forgo marketplace coverage and up to 4.8 million become uninsured.
  • Fiscal critics cite high costs and fraud risks, pointing to a roughly $335 billion 10-year CBO price tag and reports of “phantom enrollees,” even as KFF says most alleged fraud involves third-party signups; Republicans remain divided, with some signaling support for a renewal through 2027.