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Senate Republicans are voicing strong opposition to a Democratic proposal aimed at extending Affordable Care Act (ACA) subsidies for a year, as part of a broader strategy to end the current government shutdown. The GOP contends that there is little enthusiasm for such a deal within their ranks.
The proposal, put forth by Senate Minority Leader Chuck Schumer of New York, includes a short-term funding measure, a three-bill “minibus,” and a continuation of tax credits. However, several Senate Republicans were quick to dismiss it as lacking seriousness, mere hours after Schumer presented it on the Senate floor.
Senator Lindsey Graham of South Carolina expressed his dissatisfaction as he made his way to a GOP conference meeting, describing the proposal as “terrible.” He criticized the financial windfall experienced by major health care companies, noting, “The five largest health care companies in America have seen their stock prices skyrocket by 1,000 percent since 2010. We are inundating these entities with funds, which is fueling inflation.” Graham firmly stated, “The program is flawed, and I refuse to continue allocating hundreds of billions of dollars to insurance companies.”
Throughout the government shutdown, Republicans have maintained that they would only engage in health care negotiations once the government is back in operation. On the other hand, Democrats have prioritized the extension of ACA subsidies in their demands.
Republicans have said throughout the shutdown they would only negotiate on health care after the government reopened. Democrats, meanwhile, had made extending the ACA subsidies their central ask.
Schumer announced the proposal the day after bipartisan talks that had been ongoing this week fell apart.
A group of moderate Democrats were nearing a deal with Republicans that included a stopgap spending bill, an attached minibus and a commitment to hold a vote on a bill to extend ACA subsidies by a certain date.
Negotiators, however, began singing a different tune early Thursday afternoon, as they indicated a deal was not close. That was followed by a Democratic caucus meeting that led the party to seek more concessions from Republicans.
Led by the one-year ACA tax credits extension, the new offer was rejected swiftly by the GOP.
“Everybody who follows this knows that’s a nonstarter,” Senate Majority Leader John Thune (R-S.D.) said. “There is no way. The ObamaCare extension is the negotiation. That’s what we’re going to negotiate once the government opens up.”
“A one-year extension along the lines of what they’re suggesting … it just doesn’t even get close,” Thune said, adding the Democratic offer also does not include protections for the Hyde Amendment, which bars the use of federal funds to pay for abortions.
Thune said the proposal is evidence Democrats are “feeling the heat.”
House Republicans were also quick to slam the offer.
Rep. August Pfluger, (R-Texas), chair of the Republican Study Committee, called it a “nonstarter” while the hardline conservative House Freedom Caucus said it was “absurd.”
House Democrats, meanwhile, appeared to back the offer.
One top aide said Democratic offices have been discussing the offer this afternoon, “and most seem to think it’d be an acceptable off-ramp.”
“It would meet the promise to constituents and put us in good position going forward,” the aide said.
The proposal also came days after Democrats saw massive wins at the ballot box, opening up a fissure for Republicans and encouraging the minority party to dig in.
President Trump declared Wednesday that the shutdown had hurt the GOP in the elections, buoying progressives to keep up the fight for a subsidy extension, with Republicans seemingly on the back foot.
Progressives also were not in favor of the deal at the center of bipartisan talks, having insisted they want an outcome on the tax credits rather than a process that would include a likely failed vote.
Emily Brooks and Mike Lillis contributed.