No End in Sight for Government Shutdown as Congress Clashes Over Expiring ACA Subsidies

On October 1, federal funding lapsed in the absence of a budget for fiscal year (FY) 2026, shutting down the federal government for the first time since the historic thirty-five-day shutdown under President Trump’s first term. As previously reported by COSSA, Senate Democrats clashed with the Republican majority over a House-passed continuing resolution (CR) that did not address Democrats’ concerns over extending the expiring Affordable Care Act (ACA) subsidies, reversing some of the Medicaid cuts enacted in the “big, beautiful bill,” and including language to prohibit funding cuts and pocket recissions. 

While both parties are generally supportive of extending the ACA subsidies, so far Democrats are unwavering in their effort to extend them before the healthcare enrollment period begins on November 1. Rep. Mike Lawler (R-NY) publicly proposed H.R. 5154 to House Minority Leader Hakeem Jeffries (D-NY), which would extend the subsidies by one year, but Rep. Jeffries rejected the bill as a solution as it had little support from the Republicans. Further, any new legislation would be difficult to pass with House Speaker Mike Johnson (R-LA) suspending session for the lower chamber in an attempt to pressure the Senate into advancing the House-passed CR. Several House Republicans, including Reps. Kevin Kiley (R-CA), Jay Obernolte (R-CA), Elise Stefanik (R-NY), and Julie Fedorchak (R-ND), have urged Speaker Johnson to return to regular operations; however, he has thus far remained firm in his decision. With Senate Democrats doubling down on their refusal of the House-passed CR and House Republicans refusing to negotiate with their colleagues across the aisle, Congress does not appear any closer to a resolution.

Despite the uncertainty surrounding the government shutdown, the Senate is continuing to move FY 2026 funding bills through regular order. On October 9, the Senate advanced their Defense bill in a 77-20 vote along party lines after a marathon voting session on several amendments and concessions, including a commitment to Sen. Tammy Baldwin (D-WI) from Senate Armed Services Chairman Roger Wicker (R-MS) that he would hold a hearing on the Trump Administration’s controversial use of the National Guard. House Appropriations Chairman Tom Cole (R-OK) has also indicated intent to advance a minibus package that would include the Energy-Water, Interior-Environment, and Transportation-HUD bills once the House returns to session, which may not be until after legislation is passed to reopen the government.

Stay tuned for COSSA’s continued coverage on the appropriations process.