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41m ago

U.S. Shutdown Begins Over Health-Care Standoff as Senate Republicans Block ACA Subsidy Extension

Democrats are withholding votes for a stopgap to force action on expiring premium tax credits.

House Democrats prepare to speak on the steps of the Capitol to insist that Republicans include an extension of expiring health care benefits as part of a government funding compromise, in Washington, Tuesday, Sept. 30, 2025. (AP Photo/J. Scott Applewhite)
People sign up for health insurance through Covered California at the Asian Health Services offices in Oakland in January 2017. Nearly 1.7 million Californians could soon face steep increases in Covered California premiums if Congress does not extend federal subsidies.
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Senate Minority Leader Chuck Schumer, D-N.Y., turns to Sen. Brian Schatz, D-Hawaii, while speaking with reporters as the government lurches toward a shutdown if the Senate does not pass a House measure that would extend federal funding for seven weeks, at the Capitol in Washington, Tuesday, Sept. 30, 2025. (AP Photo/J. Scott Applewhite)

Overview

  • The federal government shut down after lawmakers missed the funding deadline as Democrats tied their votes to immediate action on health coverage and Republicans insisted on reopening the government before talks.
  • A 47–53 Senate vote blocked a Democratic plan to fund operations through Oct. 31, permanently extend enhanced marketplace subsidies, and undo Medicaid cuts that the CBO says would increase the uninsured by millions.
  • KFF estimates that if the enhanced credits lapse at year’s end, average out-of-pocket premiums for subsidized marketplace enrollees would more than double next year, affecting a record 24 million enrollees, over 90% of whom receive subsidies.
  • Republican leaders say they will negotiate on the subsidies after passing a stopgap, while claims that Democrats seek subsidized coverage for undocumented immigrants are refuted by federal rules that bar such eligibility.
  • Insurers are proposing median 2026 premium increases near 18% and analysts warn higher costs could push healthier people out of the market as open enrollment begins Nov. 1.