By Suzanne Downing 
Congress is hurtling toward a government shutdown as Democrats and Republicans clash over healthcare funding expansions during the Biden Administration, with just over two weeks left before the Sept. 30 deadline.
At the heart of the standoff are billions of dollars in extra health insurance subsidies under Obamacare, the Affordable Care Act, set to expire at year’s end.
Democrats, led by New York Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries say they will not support a “clean” continuing resolution, which is a short-term funding bill to keep the government open, unless it includes an extension of the subsidies.
Republicans, who control both chambers of Congress alongside President Donald Trump, plan to push their own CR next week without the healthcare provisions.
Failure to strike a deal could trigger a partial government shutdown on Oct. 1, halting non-essential federal operations and furloughing hundreds of thousands of workers.
The subsidies, first enacted during the pandemic under the 2021 American Rescue Plan and later extended through 2025 in the Inflation Reduction Act, have fueled record Obamacare enrollment. About 24 million Americans now are enrolled in Obamacare, with nearly 22 million receiving tax credits to lower their premiums.
If the subsidies lapse Dec. 31, premiums could rise by 75% or more in 2026, according to estimates. As many as 4 million people who are part of the expanded coverage could be impacted. Democrats are framing the looming hike as a “health insurance apocalypse.”
Democrats are also pushing to reverse recent Medicaid cuts and restore coverage for groups excluded under Trump’s July 2025 “One Big Beautiful Bill Act,” which barred Deferred Action for Childhood Arrivals (DACA) recipients from ACA eligibility.
Republican leaders are split. Fiscal conservatives, including Speaker Mike Johnson, explain the subsidies are too costly and would add about $100–120 billion for just a one-year extension — nearly $380 billion over a decade. They also cite reports of fraud and improper enrollments.
But others are not ready to pull the plug. Republican Rep. Jen Kiggans, introduced legislation to extend the subsidies for one year, noting that rate spikes could hit families just weeks before the 2026 midterm elections, a political consideration for Republicans. Senate Majority Leader John Thune has signaled some openness to including healthcare provisions in a stopgap bill.
President Trump, however, has so far resisted tying subsidies to government funding, encouraging Republicans to bypass Democrats and negotiate on healthcare separately.
Republicans’ failed in their 2018 Obamacare repeal effort that cost them control of the House.
Possible outcomes include a bipartisan deal that gives the Obamacare expansion a one-year subsidy extension. Alternately, a shutdown of the government on Oct. 1 — an unlikely, but not impossible scenario.
Suzanne Downing
Obamacare is an abomination that has multiplied exponentially the cost of healthcare and health insurance. Myriads of working people cannot afford the premiums so are uninsured. Medicaid has become an incentive for too many to not work or aspire. The marketplace policies available, at least in Alaska, are atrocious and have crazy high deductibles unless you pay extortionist premiums. Medicare is not much better as unless you actually retire and stop working you pay through the proverbial nose. If you opt out, you chance to not receive social security. If you wait, you are penalized. Then, there are no other options unless one is exceedingly wealthy and can self pay. It is a racket. Throwing more money at Obamacare is like feeding a crime syndicate. It is a big industry and there is no incentive for preventative care, or healthy living. Our ‘health’care system seems to be engineered to keep people sick as that is where the money is. Treating sick people makes more money than teaching them how to be healthy. My husband is now on Medicare, we are still running a successful business and he is paying a high monthly premium for just parts A and B. I am not yet on Medicare and have opted to not play the expensive marketplace shell game but have joined a healthcare sharing called Christian Healthcare Ministries. I am essentially ‘uninsured’.
Obamacare has turned this country into a socialist state. The pandemic was a convenient way to expand it to DACA
residents and more. Socialism has taken over and it’s hard to see how we are going to get out of this as one country. Civil war seems inevitable. On another note, I’m glad I found where you went, Suzanne. Keep up the fight! We are depending on you!