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A possible government shutdown could hinge on this health care debate

Republicans are pushing for a temporary extension of government funding to prevent a possible shutdown, but Democrats aren't budging on health care policy demands.

A possible government shutdown could hinge on this health care debate

Republicans are pushing for a temporary extension of government funding to prevent a possible shutdown, but Democrats aren't budging on health care policy demands.

Washington News Bureau logo
Updated: 8:09 AM CDT Sep 27, 2025
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A possible government shutdown could hinge on this health care debate

Republicans are pushing for a temporary extension of government funding to prevent a possible shutdown, but Democrats aren't budging on health care policy demands.

Washington News Bureau logo
Updated: 8:09 AM CDT Sep 27, 2025
Editorial Standards
Republicans are pushing for a temporary extension of government funding to prevent a possible shutdown on Oct. 1, but Democrats aren't budging on health care policy demands."We're fighting for the health care of the American people. Period. Full stop," House Minority Leader Hakeem Jeffries told reporters on Friday. Much of that fight centers on a push to preserve a policy passed during the COVID-19 pandemic to lower out-of-pocket costs. In 2021, Congress increased tax credits that made health insurance premiums cheaper for millions of Americans purchasing coverage through marketplaces established by the Affordable Care Act, also known as Obamacare. The enhanced subsidies were later extended through 2025. "This lowered people's costs significantly, and it actually led to the markets doubling in size, from about 12 million people to over 24 million people," said Cynthia Cox, who directs KFF's program on the Affordable Care Act. If Congress allows those enhanced subsidies to expire, many people will still get some financial assistance, but the extra help made available in recent years will go away. It's part of the reason why some Americans could see their monthly premiums increase by hundreds of dollars starting in 2026, according to Cox. "We're expecting that people's premium payments could double next year," Cox said. Senate Majority Leader John Thune told CNN on Thursday that Republicans are open to discussing the premium tax credits, but not as a condition of preventing a government shutdown. He argues that the program is costly and needs reform. "I think everybody is willing to have that conversation, but you shouldn't hijack a bill that will keep the government open in order to do a lot of extraneous things," Thune said. It's not the only health policy demand Democrats are making. They also want to roll back Medicaid changes that were included in the Republican megabill signed into law this summer. "The Democrats' requests are completely unhinged and unreasonable and unserious," Thune said. There are different views within the GOP about the path forward for the premium tax credits. A group of House Republicans is backing legislation that would extend the enhanced subsidies for one year, punting the issue past the 2026 midterms. Some want to end the enhanced subsidies altogether, while others have proposed cost-saving measures, like stricter income eligibility criteria. Republicans argue there is still time for a policy debate, since the enhanced tax credits don't expire until the end of the year. Democrats argue Congress needs to take action sooner because open enrollment starts Nov. 1. The concern is that some Americans may be spooked by the prospect of higher costs and forgo coverage. The nonpartisan Congressional Budget Office estimates that, without an extension through 2026, the number of people without insurance will rise by 2.2 million in that year alone.

Republicans are pushing for a temporary extension of government funding to prevent a possible shutdown on Oct. 1, but Democrats aren't budging on health care policy demands.

"We're fighting for the health care of the American people. Period. Full stop," House Minority Leader Hakeem Jeffries told reporters on Friday.

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Much of that fight centers on a push to preserve a policy passed during the COVID-19 pandemic to lower out-of-pocket costs.

In 2021, Congress increased tax credits that made health insurance premiums cheaper for millions of Americans purchasing coverage through marketplaces established by the Affordable Care Act, also known as Obamacare. The enhanced subsidies were later extended through 2025.

"This lowered people's costs significantly, and it actually led to the markets doubling in size, from about 12 million people to over 24 million people," said Cynthia Cox, who directs KFF's program on the Affordable Care Act.

If Congress allows those enhanced subsidies to expire, many people will still get some financial assistance, but the extra help made available in recent years will go away. It's part of the reason why some Americans could see their monthly premiums increase by hundreds of dollars starting in 2026, according to Cox.

"We're expecting that people's premium payments could double next year," Cox said.

Senate Majority Leader John Thune told CNN on Thursday that Republicans are open to discussing the premium tax credits, but not as a condition of preventing a government shutdown. He argues that the program is costly and needs reform.

"I think everybody is willing to have that conversation, but you shouldn't hijack a bill that will keep the government open in order to do a lot of extraneous things," Thune said.

It's not the only health policy demand Democrats are making. They also want to roll back Medicaid changes that were included in the Republican megabill signed into law this summer.

"The Democrats' requests are completely unhinged and unreasonable and unserious," Thune said.

There are different views within the GOP about the path forward for the premium tax credits. A group of House Republicans is backing legislation that would extend the enhanced subsidies for one year, punting the issue past the 2026 midterms. Some want to end the enhanced subsidies altogether, while others have proposed cost-saving measures, like stricter income eligibility criteria.

Republicans argue there is still time for a policy debate, since the enhanced tax credits don't expire until the end of the year.

Democrats argue Congress needs to take action sooner because open enrollment starts Nov. 1. The concern is that some Americans may be spooked by the prospect of higher costs and forgo coverage.

The nonpartisan Congressional Budget Office estimates that, without an extension through 2026, the number of people without insurance will rise by 2.2 million in that year alone.

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