Senate Reaches Key Deal to Reopen US Government After Shutdown Standoff Over ACA Subsidies

Breakthrough to End Historic Shutdown

The US Senate has moved a major step closer to reopening the federal government after a group of centrist Senate Democrats agreed to support a funding plan. The deal promises a future vote on extending Affordable Care Act (ACA) tax credits, a key Democratic demand, offering a path to end the longest government shutdown in US history.

Temporary Funding Extension

The agreement includes a short-term funding bill to keep federal operations running until January 30, along with a broader spending package to fund key agencies. Although Republicans did not commit to immediately extending the ACA subsidies, Senate leaders agreed to hold a vote next month — giving time to negotiate a long-term solution.

Senate Majority Leader John Thune confirmed the move, saying, “After nearly six weeks, we are finally close to ending this shutdown.”

Divided Democratic Reactions

The compromise has sparked major disagreement inside the Democratic Party:

• Moderate Democrats say ending the shutdown must come first and believe the upcoming vote gives them leverage.

• Progressive Democrats argue that reopening the government without guaranteed health-care protections is a mistake.

Sen. John Hickenlooper expressed frustration, saying the deal is not perfect but aims to “help the most people.”

Next Steps in Congress

Once the Senate finalizes the bill, it heads to the House of Representatives, where Speaker Mike Johnson must secure enough support — likely relying on both Republicans and Democrats, with influence from former President Donald Trump.

House Democrats, led by Hakeem Jeffries, have already criticized the deal, insisting ACA subsidies must be included before they support any spending bill.

Protection for Federal Workers

A key win for Democrats: the Biden Administration agreed to reverse large-scale federal worker firings and ensure full back-pay for all employees affected by the shutdown. New protections will also stop similar mass firings for the rest of the fiscal year.

Lingering Shutdown Risks

Although this deal may reopen the government within days, lawmakers warn that another shutdown fight could happen when temporary funding expires in January. Democrats say they will consider all options if the ACA subsidy vote fails to move forward.

High-Stakes Political Clash

Some Democrats — including Sen. Richard Blumenthal — strongly oppose the agreement, insisting:
“There is no deal without health-care protections.”

Meanwhile, others like Sen. John Fetterman urged colleagues to “take the win” and reopen the government first, then continue fighting to lower health-care costs.