Senate Democrats have reached a deal with Republicans to end the government shutdown, the longest shutdown in U.S. history, after 40 days. In exchange for the deal, Republicans agreed to allow a future vote on extending enhanced Affordable Care Act (ACA) subsidies. 

Background

The shutdown began on Oct. 1, after Congress and the White House failed to agree on the annual spending bills needed to keep the government operating. 

The impasse centered on disagreements over health care policies, specifically the future of the enhanced ACA subsidies. The subsidies are federal payments that lower health insurance costs for eligible U.S. citizens, reducing monthly premiums and out-of-pocket expenses for those buying coverage through government marketplaces.

President Donald Trump and Republican leaders sought to scale back the subsidies and cut nondefense discretionary spending, saying the federal budget had grown too large. 

Democrats, led by Senate Majority Leader Chuck Schumer, rejected the proposed reductions and argued that ending the subsidies would raise health insurance costs for millions of Americans. 

With no compromise reached before the start of the fiscal year, funding lapsed for most federal agencies, forcing hundreds of thousands of federal workers to go without pay and curtailing services across the country. Essential operations, such as air traffic control and military duties, continued, but many public programs and offices were affected. 

The deal

The deal was struck with at least eight Democrats supporting it:

Catherine Cortez Masto
Dick Durbin 
John Fetterman 
Maggie Hassan 
Tim Kaine 
Angus King 
Jacky Rosen 
Jeanne Shaheen 

The vote to advance the bill to reopen the government was passed by a 60-40 margin, which is the minimum required to end the government shutdown.

Under the bill, federal agencies are barred from terminating employees until Jan. 30, 2026, allowing those furloughed during the shutdown to continue receiving pay and preventing further staffing disruptions.

The bill would also provide back pay to federal employees.

Several programs and agencies will receive full-year funding under the bill, including military construction, veterans’ services, the Department of Agriculture and the legislative branch. Other funding disputes, such as border security, domestic spending levels and climate programs, remain unresolved and will require additional negotiations later.

The bill restores operations for agencies that oversee critical public services, including the Supplemental Nutrition Assistance Program, Social Security, Medicaid and unemployment programs. Payments and services that were delayed during the shutdown are set to resume.

Senate and House approval is required before the measure can become law, and Trump will need to sign the bill. Lawmakers have described it as a temporary compromise to keep the government running while giving Congress more time to negotiate a longer-term spending plan.

Democrats are split on the bill, as it puts the ACA subsidies in the hands of a vote in December.

Democrats at odds

Kaine, a senator from Virginia, says that to “earn his vote,” Republicans would need to compromise on a deal involving the subsidies. However, he backed the bill that puts those subsidies at risk.

He said if Republicans don’t vote to extend the ACA subsidies, they can expect voters to take action. 

“Lawmakers know their constituents expect them to vote for it, and if they don’t, they could very well be replaced at the ballot box by someone who will,” Kaine said.

Other Democrats, like Schumer, said he is opposed to any deal that doesn’t include anything on health care policies, especially the subsidies.

“Because of Republicans, Americans are going to suffer immensely as this health care crisis gets worse,” Schumer said. “Therefore, I must vote no.”