An Obamacare Deal Could End the Shutdown. It Won't Be Easy.

"This week, the current federal-government shutdown will become the third-longest ever, surpassing a 2013 shutdown that lasted 16 days. There are some significant echoes of the 2013 shutdown, which stemmed from a failed Republican effort to "defund" Obamacare just as that health-reform initiative was being fully implemented. Now the shoe is on the other foot: Democrats are demanding that Obamacare subsidies, which were significantly expanded in 2021, be extended. Without congressional action, upwards of 20 million Americans will see a huge Obamacare premium hike at the end of the year."

"Democrats originally demanded a host of concessions, including cancellation of Medicaid cuts enacted in the One Big Beautiful Act and an end to Office of Management and Budget director Russell Vought 's power-grabbing cancellations of previously authorized spending."

The federal-government shutdown will become the third-longest in history and echoes a 2013 fight over health reform. Democrats are demanding extension of Obamacare subsidies expanded in 2021 to avoid steep premium increases for roughly 20 million people. Democratic demands previously included broader concessions such as reversing Medicaid cuts and blocking OMB cancellations, but Democrats have since narrowed focus to subsidies. Republicans appear to have retreated from deep spending cuts and favor a clean continuing resolution to maintain current spending. Negotiations are stalled because Republicans refuse to negotiate before reopening the government and Democrats refuse to reopen without a subsidy deal; a detailed framework agreement could break the impasse but would require specific commitments.

Read at Intelligencer