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On Friday, Senate Minority Leader Chuck Schumer from New York unveiled a strategy aimed at resolving the ongoing government shutdown. Central to his proposal is a one-year extension of the enhanced tax credits under the Affordable Care Act (ACA), coupled with a short-term spending bill.
“Democrats have been clear about the necessity of addressing the healthcare crisis, yet Republicans have consistently refused to engage in negotiations to reduce healthcare costs until the government resumes operations,” Schumer declared in a speech on the Senate floor, joined by fellow Democrats. “It’s time to find a compromise that respects both perspectives.”
He further elaborated, “Our proposal is straightforward: reopen the government, extend the ACA premium tax credits, and commence negotiations on long-term healthcare cost solutions. We can achieve all three objectives.”
In addition to the proposed one-year extension, Schumer’s plan includes a short-term funding measure known as a continuing resolution (CR). The proposal also suggests incorporating a three-bill minibus, featuring full-year spending bills that were previously part of bipartisan negotiations.
Schumer’s office added that the plan seeks to establish a “bipartisan committee to continue discussions on long-term reforms aimed at improving healthcare affordability.”
The offer came after days of intense discussions on the Democratic side about the possibility of an off-ramp. Democrats had been demanding an extension of the ACA credits as a condition of reopening the government, but as the pain being caused by the shutdown intensified, a debate emerged between progressives and moderate-leaning members over whether to accept an offer from Senate Majority Leader John Thune (R-S.D.).
That blueprint included a vote on a CR until January, and attached the minibus and a commitment to hold a vote to extend the ACA subsidies.
Talks continued until midday Thursday, when Democrats decided over lunch to unify behind a single plan by the party, which Schumer finally unveiled.
Thune has been adamant that not only will his conference not negotiate on health care until the government is open, but that he could not guarantee a result on the tax credits, given the opposition to extending them within both the Senate and House GOP conferences.
Senate Republicans are expected to discuss the plan during a conference meeting set for 3:30 p.m. EST.
Up until the Schumer proposal was made, there were questions over the path in the upper chamber in the coming hours and days.
Thune was hopeful to hold a vote on the House-passed CR with an eye toward amending it with the bipartisan talks in mind.
He also indicated a vote on Sen. Ron Johnson’s (R-Wis.) bill aimed at paying excepted federal workers throughout the shutdown was also a possibility.
However, Johnson attempted to pass it via unanimous consent shortly before Schumer’s offer was made. Sen. Gary Peters (D-Mich.) objected to it.
Updated at 3:07 p.m. EST