Intense Standoff Over US Government Funding

The increasingly fraught standoff over US government funding intensified Wednesday, as congressional Democrats rolled out a hefty counter-proposal, escalating the risk of a partial government shutdown on October 1. Democrats are demanding that US President Donald Trump and congressional Republicans agree to healthcare policy reforms, which House Speaker Mike Johnson has already deemed a “non-starter.” The minority’s proposal, in the form of legislative text, lays out a series of priorities that could be drawn from to build consensus for any future compromise plan. However, Democratic leader Chuck Schumer told reporters that, as of now, no such serious talks have taken place.

“Go ask the Republicans if they want to shut down the government,” Schumer told reporters, adding that Republican leaders have “fundamentally” not asked Democrats to negotiate.

Details of the Democratic Proposal

The Democrats’ bill would repeal Medicaid cuts enacted in July to offset some of the cost of Trump’s signature $4 trillion tax cut and spending reduction law. In addition, Democrats are seeking a long-term extension of soon-to-expire Obamacare tax subsidies, a proposal that could cost hundreds of billions of dollars. Schumer declined to comment on the cost of those subsidies.

If the Obamacare subsidies are not renewed, many Americans will receive notices of their health insurance premiums spiking starting with the open enrollment period for insurance for next year beginning November 1. The Democrats’ proposed temporary appropriation bill would last through October 31, just before that open deadline, while the Republicans’ proposal would fund the government through November 21.

Republican Stance

Republicans need the support of at least seven Senate Democrats to pass a government funding bill in that chamber. So far, Schumer has staunchly opposed the Republican bill.

Meanwhile, Republican leaders have signaled they do not intend to negotiate healthcare as part of the temporary appropriations process. Senate Majority Leader John Thune told reporters earlier that any short-term spending bill counter-proposal including major healthcare provisions was “utterly unserious,” and discussions on Obamacare subsidies could take place later.

Maine Republican Senator Susan Collins, who serves as chair of the panel’s spending subcommittee, said she was concerned that not enough Democrats would cross party lines. “They’re certainly under tremendous pressure from Senator Schumer,” she said.

Schumer, in turn, has accused Republicans of being unwilling to negotiate at all, and instead trying to corner Democrats with a “take-it-or-shut-it-down” proposal.


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