Senate Minority Leader Chuck Schumer proposed a plan Friday to end the government shutdown, offering Republicans a straightforward deal: reopen the government while simultaneously extending expiring Affordable Care Act premium tax credits for one year.

Standing on the Senate floor backed by the entire Democratic caucus, Schumer framed the proposal as a solution that addresses both parties’ concerns during the 38-day shutdown—now the longest in American history.

Schumer’s offer includes three key components designed to break the impasse that has paralyzed the federal government since October 1:​

A clean, one-year extension of enhanced ACA premium tax credits that are set to expire January 1, 2026, attached to a short-term government funding bill.​

Immediate reopening of the government to restore pay for hundreds of thousands of federal workers and resume critical services.​

Creation of a bipartisan committee to negotiate longer-term healthcare reforms after the government reopens, addressing Republican demands for changes to the Affordable Care Act before next year’s enrollment period.​

The Democratic leader characterized the proposal not as a negotiation but as “an extension of current law, something we do all the time around here.”

Without congressional action, an estimated 22 million Americans currently receiving enhanced premium tax credits will see their costs more than double in 2026.​

According to Kaiser Family Foundation analysis, average annual premium payments for subsidized enrollees would surge 114 percent—from $888 in 2025 to $1,904 in 2026. For some Americans, the impact is even more severe. A family of four earning approximately $130,000 annually would see monthly premiums jump from $921 to $1,998, representing an annual increase of nearly $13,000.

The enhanced subsidies, first introduced during the COVID-19 pandemic through the American Rescue Plan Act in 2021 and extended through 2025 by the Inflation Reduction Act, eliminated the “subsidy cliff” that previously cut off assistance for households earning above 400 percent of the federal poverty level. They also increased financial assistance for lower-income enrollees by capping premium contributions at 8.5 percent of income.​

Approximately 74 percent of Americans support extending the tax credits, according to a recent KFF poll, including 50 percent of Republicans. Congressional Budget Office projections estimate that failure to extend the subsidies would result in 3.8 million people losing coverage, while a full extension would cost approximately $350 billion over a decade.

Senate Majority Leader John Thune and Republicans are prepared to meet and discuss the Democratic offer. Thune had previously offered Democrats a vote on ACA subsidy legislation only after the government reopens, but many Senate Democrats view that promise as insufficient without ironclad guarantees.

The previous record for the longest government shutdown—35 days during Trump’s first term from December 2018 to January 2019—was surpassed Wednesday, making the current impasse the most extended funding lapse in American history.