Top Senate Democrat Chuck Schumer on Friday proposed a new plan to Republican lawmakers that would allow the U.S. government to reopen from the shutdown that began on October 1.
But Republicans quickly rejected Schumer’s proposal. The proposal hinges on protecting enhanced Affordable Care Act subsidies for at least a year. In exchange, Democrats will drop their request to include a long-term extension of ACA tax credits in a stopgap government funding bill.
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“I think Sen. Schumer’s demands are ridiculous and amount to political hostage to continue his bad policies,” South Carolina Republican Sen. Lindsey Graham said in a post on X.
“We should not be forced to continue funneling taxpayer dollars to health insurance companies under Obamacare in exchange for opening up the government,” Graham said.
“My no vote would be a clear rejection of Sen. Schumer’s very bad idea.”
Mr. Schumer’s proposal calls for Democrats to agree to pass Republicans’ so-called clean resolutions that would provide short-term funding for government operations.
In return, the New York congressman said, Republicans would agree to extend ACA credits for another year and establish a bipartisan commission to continue negotiations to address health care affordability issues.
The proposal comes as millions of Americans who purchase Obamacare health insurance plans face much higher premiums in 2026 because the prices of those plans do not include the discount provided by enhanced ACA tax credits.
These increased subsidies, which are used by more than 20 million Americans, will expire at the end of December unless Congress extends them.
U.S. Senate Minority Leader Chuck Schumer (D-N.Y.) speaks during a press conference after the weekly policy luncheon, more than a month into the ongoing U.S. government shutdown, at the U.S. Capitol in Washington, DC, on November 4, 2025.
Annabelle Gordon Reuter
Senate Democrats had been pushing for an extension of ACA subsidies since before the shutdown began until Friday, with a funding resolution.
That stance prevented a Republican-backed House funding bill that did not extend the credit line from gaining the 60 votes needed to pass the Senate.
Republicans argue that bond maintenance issues should only be resolved after a “clean” funding bill is passed.
Republicans hold 53 seats in the Senate. There are 45 Democratic senators and two independents who caucus with them.
“Democrats say we have to deal with the health care crisis, but Republicans have repeatedly said they won’t negotiate lower health care costs until the government reopens,” Schumer said on the Senate floor Friday afternoon.
“So let’s find a way to respect both sides,” the minority leader said.
“So we want to offer a simple proposal that simultaneously reopens the government and extends the ACA Premium Tax Credit, and we want an opportunity to start negotiating a long-term solution to health care costs,” Schumer said.
“This proposal will reopen the government and ensure that working families currently shopping for health insurance receive financial relief while open enrollment begins,” he said.
Schumer said insurers “can renew their premiums after a simple extension of the tax credit is passed.”
Senate Majority Leader John Thune, R.S., said Schumer’s proposal is “a non-starter.”
“They know that the previous proposal was unscrupulous and unrealistic… so this is progress,” Thun told reporters.
“But I don’t think that comes close to what we need to do here.”
A person familiar with the Republican Party’s position told CNBC, “Democrats made a private proposal several weeks ago (and it was rejected).”
“Today’s stunt is an admission that it’s time to end the shutdown that Democrats started.”
“Democrats are making it clear that they are holding the American people hostage for other spending. This is a significant retreat from their initial position and shows that Democrats are under significant pressure from within,” a White House official told CNBC.
The official said House Minority Leader Hakeem Jeffries of New York “has indicated that he will never accept something like this, and this is a significant break with House Democrats.”
“Ultimately, Democrats should reopen the government today, and the administration intends to meet and work with them on tax credits,” the official said.
“The initiative that Leader Schumer has laid out is a very reasonable and honest proposal to reopen the government and address key parts of the Republican health care crisis,” Jeffries said in a statement.
“House Democrats will soon have an opportunity to caucus and further discuss how to end the Republican shutdown,” Jeffries said.
He added that House Speaker Mike Johnson (R-Louisiana) and “House Republicans need to get back to work and get back from their exorbitant six-week taxpayer-funded vacation. Enough is enough.”
Numerous polls show that more Americans blame President Trump and the Republican Party than Democrats for the government shutdown.
Three days before Mr. Schumer introduced his new proposal, Democratic candidates swept key races in New York City, New Jersey and Virginia.
President Donald Trump acknowledged Wednesday that the low turnout was bad for the Republican Party.
President Trump said the government shutdown is seen as a “huge negative factor for the Republican Party.”
