Republicans Reject Democratic Proposal to End Shutdown and Extend Health Care Subsidies, Impasse Persists into 38th Day

Republicans Reject Democratic Proposal to End Shutdown and Extend Health Care Subsidies, Impasse Persists into 38th Day

WASHINGTON (AP) – Senate Majority Leader John Thune dismissed a bipartisan proposal from Democratic lawmakers aimed at reopening the federal government and extending expiring health‑care subsidies, labeling the plan a "nonstarter" as the partial shutdown entered its 38th day.

The Democratic package sought to fund the government through the end of the fiscal year while also providing a one‑year extension for the premium subsidies that were set to expire under the Affordable Care Act. Proponents argued that the measures would prevent further economic disruption and protect millions of Americans who rely on the subsidies to afford health insurance.

Thune and other Republican leaders countered that the offer failed to address core fiscal concerns, particularly the need to reduce spending and adhere to previously negotiated budget caps. In a brief statement, Thune emphasized that any viable solution must include cuts or offsets, asserting that the Democrats’ proposal would only deepen the deficit.

The shutdown, which began after Congress failed to approve a continuing resolution, has left many federal employees furloughed and essential services operating at reduced capacity. Agencies ranging from national parks to certain regulatory bodies have reported staffing shortages, while the broader economy has felt the strain of delayed contracts and payments.

Separately, the looming expiration of health‑care subsidies has heightened political pressure, as analysts note that millions could lose coverage if the subsidies lapse. Lawmakers from both parties have warned that the loss could trigger a surge in uninsured rates and increase strain on the health‑care system during an already challenging period.

Negotiations remain stalled, with both chambers expected to continue deliberations in the coming days. Observers caution that without a compromise, the shutdown could extend further, potentially prompting emergency measures or a government‑wide funding bill to avert additional economic fallout.

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