After 38 days of gridlock, Democrats propose ending U.S. shutdown in exchange for one-year Affordable Care Act tax credit extension.
After more than five weeks of a crippling federal shutdown, Democrats have finally placed an offer on the table to reopen the U.S. government — proposing a deal centered on extending Affordable Care Act (ACA) tax credits for one year.
Senate Minority Leader Chuck Schumer announced Friday that his party is ready to vote immediately to fund the government — provided Republicans agree to extend the expiring health care subsidies that form a cornerstone of Obamacare.
“All Republicans have to do is say yes,” Schumer declared, calling on the GOP to end what has become the longest government shutdown in U.S. history.
The proposal, crafted by Senator Gary Peters (D-Mich.), combines a short-term funding bill with a one-year ACA tax credit extension and a bipartisan committee to negotiate healthcare reforms demanded by Republicans. The plan comes as pressure mounts to restore pay for government workers, reopen airports, and resume food assistance programs disrupted by the shutdown.
Senate Majority Leader John Thune acknowledged the gravity of the crisis, saying he may keep the Senate in session through the weekend, following President Donald Trump’s call for Republicans to “end the shutdown quickly.”
Republicans, however, remain hesitant to link health care reform to reopening the government. GOP leaders insist the shutdown should end first — before negotiations on health policy proceed. They are expected to introduce a new bipartisan funding package aimed at breaking the impasse, with a test vote anticipated as soon as Friday night.
The shutdown, now in its 38th day, has paralyzed federal agencies, delayed paychecks for hundreds of thousands of workers, and strained key services nationwide. Economists warn that the standoff could cost the U.S. economy billions if not resolved within weeks.
For Democrats, the standoff has become a symbolic fight to protect health care access for millions of Americans — while Republicans argue for fiscal restraint and broader reforms to the ACA.
The coming days are likely to define the political balance of Washington heading into the 2026 elections — testing whether compromise or confrontation will determine America’s legislative future.
