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Democrats Propose ACA Tax Credit Extension to End US Government Shutdown
Democrats have proposed ending the US government shutdown in exchange for a one-year extension of Affordable Care Act tax credits, urging Republicans to agree to reopen federal operations.

As the US government shutdown continues to disrupt daily life, Democrats have presented a new offer to reopen the government. Senate Minority Leader Chuck Schumer announced on Friday that Democrats would vote to end the shutdown if Republicans agree to a one-year extension of expiring Affordable Care Act (ACA) tax credits, according to the Associated Press.

The ACA tax credits are a key part of the Affordable Care Act, also known as Obamacare. “All Republicans have to do is say yes,” Schumer said.

His offer came amid rising pressure on both parties to address the crisis, which has affected airports, government workers, and millions who rely on food assistance.

What Democrats Are Demanding

Democrats are proposing two simultaneous votes — one to reopen the government and another to extend expiring health care subsidies for a year.

They are also suggesting the creation of a bipartisan committee to review Republican demands for changes to the Affordable Care Act.

The plan, introduced by Senator Gary Peters of Michigan, would combine the ACA tax credit extension with a short-term funding measure and a set of appropriations bills.

This proposal marks a key development, coming after Senate Majority Leader John Thune urged Democrats on Thursday to “end these weeks of misery.” Democrats have held their position for 38 days, pushing for the ACA tax credit extension that expires on January 1.

Ongoing Negotiations

A small group of Democrats has been holding talks with Republicans to find a solution. But any final agreement would likely depend on a future vote on healthcare, rather than an immediate assurance that the ACA subsidies will be renewed this year.

Republican Standpoint

Republican leaders, who need five more votes to pass a funding bill, have refused to discuss healthcare changes during the shutdown. They insist Democrats must first support reopening the government before any health policy negotiations.

Republicans are planning to introduce a new bipartisan package of bills aimed at ending the impasse. A test vote on this package — details of which remain undisclosed — could take place as early as Friday.

Senate Majority Leader John Thune said he might keep the Senate in session over the weekend for the first time since the shutdown began. His decision follows President Donald Trump’s call at a White House breakfast on Wednesday, where he urged Republicans to resolve the shutdown swiftly.