Senate Democrats propose new govt. funding deal; Republicans reject it

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After nearly six weeks of continuously blocking Republicans’ bill to end the ongoing government shutdown, Senate Democrats have modified their funding counterproposal.

Instead of demanding the pandemic-era expansion of the Obamacare Premium Tax Credit be permanently extended, Democratic senators are now saying they will provide the necessary votes to reopen the government in exchange for a one-year extension.

“It is a compromise. It is simple and plain. And I’ll be very blunt, it’s not everything I would have wanted,” Sen. Richard Blumenthal, D-Conn., told lawmakers. “We are presenting them now with a reasonable compromise that the Majority Leader can accept and our colleagues on the other side of the aisle should embrace.”

Democrats’ proposal comes after voting against Republicans’ Continuing Resolution to reopen the government a total of 14 times over the past 38 days. The CR would have placed federal funding on cruise control for seven weeks while lawmakers finished all 12 annual appropriations bills for fiscal year 2026.

But lawmakers have now wasted over half that time period due to the shutdown. Republicans’ plan now is to bundle an updated CR with the three annual appropriations bills that have already passed the Senate, then send it over to the House.

But Senate Majority Leader Chuck Schumer, D-N.Y., told Republicans on Friday that his party is willing to support that plan only if it’s paired with a one-year extension of the enhanced Obamacare Premium Tax Credit, expiring Dec. 31.

His offer was immediately rejected by both House and Senate and Republicans, with Rep. Chip Roy, R-Texas, simply responding on social media with “Pound sand,” and Sen. Markwayne Mullin, R-Okla., denouncing the plan as “dead on arrival.”

“Democrats aren’t offering a ‘compromise,’ just more political games to prolong the Schumer Shutdown, now 38 days & counting,” Sen. Rick Scott, R-Fla., added on X.

The Senate did not hold a vote to reopen the government Friday, but did vote on Sen. Ron Johnson’s, R-Wis., Shutdown Fairness Act to pay federal workers during the shutdown. The vote failed, with most Democrats opposing it due to fears that it does not include enough safeguards against the executive branch.

The Senate has adjourned until noon Saturday. No votes are scheduled yet.

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