US shutdown: Senate standoff continues as Republicans reject Schumer plan to reopen government

The US government shutdown shows no sign of ending, as Senate Republicans on Friday rejected a new proposal from Majority Leader Chuck Schumer aimed at reopening federal agencies.The shutdown, which began on October 1, has now stretched to 38 days, making it the longest in US history.Schumer’s proposal sought to preserve enhanced Affordable Care Act (ACA) subsidies for one year in exchange for Democrats agreeing to drop their push for a longer multi-year extension of the same tax credits. In return, Democrats would pass the Republicans’ short-term “clean” funding resolution to temporarily restore government operations, NPR reported.Republicans swiftly dismissed the offer, signaling that the two parties remain deeply divided over healthcare funding and the scope of government spending. GOP lawmakers argued that Democrats were attempting to lock in policy reforms through a stopgap bill, while Democrats accused Republicans of refusing to negotiate in good faith.US President Donald Trump's frustration with the Shutdown grew after Republicans rejected Schummer's proposal and told them to stop playing with "radical Democrats."He took his account on Truth Social and said, "It’s time for Republican Senators to stop playing games with the Radical Left Democrats and TERMINATE THE FILIBUSTER, IMMEDIATELY OPEN OUR COUNTRY, AND PASS GREAT COMMON SENSE LEGISLATION!"With no compromise in sight, hundreds of thousands of federal workers remain furloughed or working without pay, and government programs across multiple sectors continue to feel the strain. The standoff has heightened political tensions in Washington, with both sides facing increasing pressure from their constituencies to find a resolution.“I find Senator Schumer’s demands ridiculous and equivalent to political hostage taking to continue bad policy,” Sen. Lindsey Graham, a South Carolina Republican, said in a post on X.“We should not be made to continue flooding health insurance companies with taxpayer dollars under Obamacare as the price to open up the government,” Graham said. “My no vote will be an unequivocal rejection of Senator Schumer’s very bad idea.”Schumer’s plan calls for Republicans to agree to a separate one-year extension of ACA credits and to create a bipartisan committee to continue negotiations on health-care affordability. Insurers would update their rates once Congress passed the simple extension of the tax credits.Millions of Americans who buy Obamacare health insurance plans are facing much higher premiums for 2026 coverage because those plans do not include the discount provided by enhanced ACA tax credits. More than 20 million Americans use the boosted subsidies, which are due to expire at the end of December if Congress does not extend them.Since before the shutdown began, Senate Democrats had insisted that any funding resolution extend the ACA subsidies, a stance that prevented a Republican-backed House funding bill without the credits from securing the 60 votes needed to pass the Senate. Republicans say the question of retaining the credits must be settled only after a clean funding bill is passed.The GOP holds 53 seats in the Senate. There are 45 Democratic senators and two independents who caucus with them.“Democrats have said we must address the health care crisis, but Republicans have repeatedly said they won’t negotiate to lower the health care costs until the government reopens,” Schumer said on the Senate floor on Friday afternoon. “So let’s find a path to honour both positions. Therefore, we’d like to offer a simple proposal that would reopen the government and extend the ACA premium tax credits simultaneously ... and then have the opportunity to start negotiating longer-term solutions to health care costs. This proposal reopens the government and ensures working families who are shopping right now for their health care get certainty and financial relief while open enrolment has begun.”Sen. John Thune, a South Dakota Republican, told reporters, “They know that their last proposal was unserious and unrealistic ... so I guess you could characterise that as progress. But I just don’t think that it gets anywhere close to what we need to do here.”A person familiar with the Republican position told CNBC, “Democrats offered this privately weeks ago and [were] rejected. Today’s stunt is an admission by Democrats that it’s time to end the shutdown they started.”