The U.S. Senate voted Sunday to advance a spending measure that would reopen the federal government, ending the longest shutdown in U.S. history.
The vote passed 60-40, satisfying the sixty votes needed to overcome the filibuster. However, the legislative package emerged without a firm deal on extending the expiring Affordable Care Act (ACA) premium tax credits, leaving millions of Americans still facing potentially doubling health insurance premiums in the new year.
The agreement will fund the government through January 30, 2026, and includes concessions such as reversing the mass firings of federal workers by the Trump administration and guaranteeing retroactive pay for furloughed workers.
But crucially, the deal struck between the GOP and a handful of Democrats only guarantees that Republicans have agreed to hold a vote in early December on extending the subsidies. There is no guarantee the extension is approved, and House Speaker Mike Johnson, R-La., has not agreed to a matching House vote on the issue, making the prospects of an extension “increasingly bleak”. (AP reported).
The resolution to end the shutdown was achieved after all 52 Republican senators were joined by eight Democratic senators in voting for the spending agreement.
Prior to the vote, Democrats had refused to pass a continuing resolution until Republicans agreed to extend the Biden-era healthcare subsidies, which are due to expire at the end of this year. These subsidies were not extended in President Donald Trump’s “Big Beautiful Bill” passed earlier this year.
Minnesota Senator Tina Smith publicly criticized her eight Democratic colleagues who voted in favor of the bill—including Senators Dick Durbin, Tim Kaine, and John Fetterman—calling their actions “a mistake”.
Sen. Smith stated: “Republicans more than doubled Americans’ health care premiums, and for 40 days they have refused to lift a finger to do a thing about it. In fact, they’ve made it worse by taking food away from kids. Allowing this to pass is a mistake”.
Sen. Amy Klobuchar, who also voted against the measure, emphasized the risk to constituents: “Lowering costs is the top priority for Minnesotans. I voted against this budget bill because it does not prevent health insurance premiums from doubling for so many in our state”.
Amid the shutdown fight, President Donald Trump renewed his long-standing attacks on the Affordable Care Act, frequently called Obamacare. Trump claimed that the ACA benefited insurance companies over people, saying he would work with both parties on the issue “once the Government is open”.
On his Truth Social platform, President Trump urged Republicans to redirect federal money that currently goes to health insurance companies and give it directly to individuals.
Mr. Trump wrote in a social media post on Truth Social on Saturday: “I am recommending to Senate Republicans that the Hundreds of Billions of Dollars currently being sent to money sucking Insurance Companies in order to save the bad Healthcare provided by ObamaCare, BE SENT DIRECTLY TO THE PEOPLE SO THAT THEY CAN PURCHASE THEIR OWN, MUCH BETTER, HEALTHCARE, and have money left over”.
He urged lawmakers to “take from the BIG, BAD Insurance Companies, give it to the people, and terminate, per Dollar spent, the worst Healthcare anywhere in the World, ObamaCare”.
Mr. Trump had previously acknowledged having only “concepts of a plan” to replace the ACA during a debate last year. While offering no specific details on the new proposal’s implementation, Republican senators have begun outlining potential alternatives. Senate health committee chair Bill Cassidy, R-La., has advanced ideas such as sending eligible Americans a “pre-funded federal flexible spending account” to cover health expenses. Other Republican proposals favor expanding the existing system of health savings accounts (HSAs).
If Congress fails to take action this year, the enhanced premium tax credits will expire, leading to significant cost hikes for enrollees. On average, this non-extension will more than double what subsidized enrollees currently pay for premiums.
The sticker shock is already hitting consumers, AP reported. One Pennsylvania resident, 51-year-old hair stylist Christine Meehan, noted that her $160 a month plan is set to increase by about $100 a month starting next year, alongside a higher annual deductible.
State officials in Minnesota predict dire consequences if the subsidies lapse:
Approximately 89,000 Minnesotans are facing an additional premium of almost $200 per month on average.
An estimated 20,000 Minnesotans would lose all financial assistance while up to 62,000 may be encouraged to drop private coverage due to cost increases.
Beyond immediate consumer costs, experts warn that as coverage becomes more expensive, younger and healthier individuals may forgo insurance, causing insurance companies to further raise costs for the remaining covered population. If more Americans are uninsured, their emergency health costs are likely to fall onto hospitals and the government.
Despite the political impasse, public opinion remains strongly in favor of continuing the support. A recent KFF poll conducted found that about three-quarters of U.S. adults – including about half of Republicans – still support extending the expiring tax credits.