Next Shutdown Threat Looms as Healthcare Fight Clouds Funding Deal

The record-long government shutdown is over… but another funding deadline looms. The continuing resolution that reopened the government extends funding until January 30, 2026. That means that Congress must reach a deal to fund the vast majority of agencies, or risk a partial government shutdown. 

Playing a major role is the extension of the Affordable Care Act (ACA) subsidies. Congressional Democrats, who were unsuccessful in using shutdown leverage to get an extension of ACA subsidies, are hinting they will hit hard on the healthcare issue, with the January deadline looming. 

“This is still a salient issue,” said Rep. Mark Takano (D-CA). “The pressure is not off the Republicans to fix this health care issue.”

And while Senate Majority Leader John Thune (R-SD) has promised to hold a vote on the subsidies, House Speaker Mike Johnson (R-LA) has yet to do so. 

But there is jockeying behind the scenes to resolve the issue ahead of time. 

“There are discussions around extending the subsidies, if we deal with the fraud, waste and abuse that, right now, is paralyzing the system,” said Centers for Medicare and Medicaid Services (CMS) Administrator Dr. Mehmet Oz. 

And a bipartisan group of House lawmakers formed a plan for a temporary extension. The legislation from Representatives Don Bacon (R-NE) and Tom Suozzi (D-NY) would give a temporary two-year extension on the subsidies with income caps. 

“Republicans nor Democrats want to see premiums skyrocket, and they will if these expire with nothing in its place,” said Rep. Bacon. 

Senate Appropriations Process

Meanwhile, the Senate is trying to get going on full-year appropriations following the reopening of the federal government.

Senate Majority Leader Thune said he plans to take up the Defense spending bill and may attach as many as four additional bills to it. Those bills could include Labor-HHS-Education, Commerce-Justice-Science, Interior-Environment, and Transportation-HUD. However, Senator Thune needs unanimous consent to attach them in a “minibus” and it could take weeks to wrangle that. 

Keep in mind that Congress passed appropriation bills for military construction, veterans’ affairs, the Department of Agriculture and the legislative branch through Sept. 30, in the legislation ending the shutdown. 

Senate Hearings

Senate committees will be looking at the effects of the recent shutdown and consider changing the ways shutdowns are addressed. Among them is the Senate Rules and Administration Committee which will consider a resolution to reduce the rate of pay for senators during a shutdown. 

There will also be a hearing on how the shutdown impacted air travel and the economy before a Commerce, Science and Transportation subcommittee.  

“It’s critical that we address the damage done and look at the long-term effects of the shutdown,” said Subcommittee Chairman Jerry Moran (R-KS).