A group of eight moderate Democrats on Sunday paved the way for a potential deal to end the government shutdown, now in its 41st day, by agreeing to compromise legislation to fund the government without a guarantee to extend the enhanced Affordable Care Act (ACA) tax credits.
The Senate on Sunday voted 60-40 on a procedural measure to advance a stopgap funding package for debate. If the Senate eventually passes the bill, it will need approval from the House of Representatives before it is sent to President Donald Trump to sign into law.
The package includes a short-term funding measure to keep most of the government running through January 30, 2026; bills to fully fund agricultural programs, including the Supplemental Nutrition Assistance Program (SNAP), military construction and veterans’ affairs until the end of September 2026; reimburse states for the money they spent to keep SNAP and the Women, Infants and Children (WIC) program running during the shutdown; reverse layoffs of federal workers made during the shutdown: and provide backpay for furloughed workers, according to The Hill.
It also includes a commitment from Senator Majority Leader John Thune to allow a vote in December to extend the expiring ACA tax credits for a year, The New York Times reports. However, House Speaker Mike Johnson, R-La., has not agreed to bringing a vote to the chamber, The Associated Press reports.
If Congress agrees to the legislation, it will end the government shutdown, which is the longest in U.S. history, and has disrupted federal services, including delayed funding of SNAP benefits and air travel due to air traffic controller staffing shortages.
But the deal without an agreement to extend the subsidies has frustrated many Democrats who have fought to preserve the ACA tax credits. Republicans argued to pass a short-term funding bill first and then debate the tax credits later.
The subsidies will expire at the end of the year, and many consumers could face significantly higher premiums. Indeed, premiums may increase 26 percent on average and consumers who previously relied on enhanced tax credits to pay for coverage could see their monthly costs more than double, according to KFF.