The Senate on Tuesday evening failed for the eighth time to pass the House-approved continuing resolution to fund the government, falling short of the 60 votes needed to reopen federal operations. The impasse continues as Democrats insist on including an extension of Affordable Care Act (ACA) tax credits, which are set to expire at the end of the year.
The federal government shutdown has entered its third week, with no resolution in sight as lawmakers remain divided over health care funding.
At the center of the debate are ACA subsidies and recent Medicaid cuts enacted under President Donald Trump’s “One Big Beautiful Bill” signed into law in July. Democrats argue that allowing subsidies to lapse would lead to significant premium hikes for millions of Americans, while reversing Medicaid cuts would restore coverage for vulnerable populations.
Republicans, led by House Speaker Mike Johnson, say negotiations can only resume after the government is reopened, citing concerns about fiscal responsibility and the long-term sustainability of federal health programs, Politico reported. Johnson said he’s open to discussing ACA subsidies once basic government functions are restored.
RELATED: Government shutdown enters second week: Battle over health care subsidies continues
House Minority Leader Hakeem Jeffries told CNN that Democrats are ready for bipartisan talks on a spending agreement that includes health care provisions. However, he noted that Republicans have not returned to the negotiating table since the shutdown began on October 1.
Given the stalemate, Johnson warned on Monday that the shutdown could become the longest in U.S. history, the Associated Press reported.
RELATED: Federal government shutdown: What it means for Medicare, telehealth, ACA premiums, and rural health
Despite the lack of negotiation on the shutdown, GOP leaders are working to advance full-year spending bills, including funding for the Pentagon and other federal agencies, Politico reports. Majority Leader John Thune has scheduled a procedural vote for Thursday on the House-passed Defense spending bill, which will need 60 votes to proceed.
Meanwhile, mass layoffs of federal workers that began on Friday night have further escalated tensions. Unlike previous shutdowns, which typically resulted in temporary furloughs, the current administration has initiated permanent layoffs. On Friday, 4,000 federal employees received layoff notices, including staff from the Office of Special Education and Rehabilitative Services at the Department of Education, the Substance Abuse and Mental Health Services Administration, and 600 workers from the Centers for Disease Control and Prevention (CDC).
Unions representing the affected workers have filed a lawsuit to temporarily stop the reductions in force. A federal judge is expected to hear preliminary arguments today, NPR reports. However, the Office of Management and Budget has indicated in a social media post that further layoffs are forthcoming.