ACA Talks Have Stalled. Government Shutdown Negotiations Are Part of the Problem.

Talks to revive the Affordable Care Act tax credits may have hit an impasse as Democrats turn their attention toward negotiating reforms in the Department of Homeland Security’s funding bill.

A bipartisan Senate group, led by Sens. Bernie Moreno and Susan Collins, has been working to draft a framework of a deal to renew the ACA subsidies since the debate over the health care tax credits resulted in the longest government shutdown in history.

Senators involved in the group initially set an informal deadline of Jan. 30 to finish conversations to reinstate the subsidies that expired at the end of December 2025. Negotiators at the time said they were facing a tight deadline as open enrollment for ACA plans started to close, and the number of enrollees in Obamacare plans dropped.

With the end of the month rapidly approaching, Congress is scrambling to avoid a partial government shutdown after Democrats said that they will not accept the current funding bill for DHS.

“The time’s not on our side,” Moreno told reporters of reviving the credits on Wednesday. “We can’t let this go on too much longer. Obviously, we got the funding issue to deal with.”

Though Moreno said he sent Democrats in the working group bill text that would revive the subsidies for three years on Wednesday, he had not heard back from negotiators as of Thursday. He suspected Senate Minority Leader Chuck Schumer had squashed Democratic support for the bill.

Moreno’s proposal includes a straight one-year extension of the tax credits that tapers off over the following two years. It offers an option to use health savings accounts in 2027 and implements reforms, including a minimum payment and an income cap. The bill extends the open enrollment period until March 31.

“The ball is squarely in their hands, but I suspect Schumer has told them to cease all conversations,” Moreno said about the Senate Democrats in the working group. “My calendar is available for them anytime they like.”

Sen. Jeanne Shaheen, one of the Democrats involved in the talks, said she had still not had a chance to review Moreno’s proposal because of the ongoing funding fight. She maintained that Schumer had not weighed in about Moreno’s proposal.

“I have not had a chance to look at it,” Shaheen said. “There are other things going on here.”

Shaheen added that she is also waiting to hear back from the Senate Finance Committee to review their analysis of the bill. She said Democrats have “serious concerns” about its contents, especially when it comes to the Hyde Amendment.

The long-standing measure in health care bills prevents federal funding from being used for abortion care and was a sticking point for negotiators on both sides. Democrats said the amendment does not need to be included, while Republicans want to see the issue specifically addressed.

“I think there are real concerns about not only its failure to recognize that Hyde is already covered in the ACA, but additional language that they’re trying to put in to address health savings accounts and some other provisions,” Shaheen said.

Moreno previously said he felt positively about the deal that the group had struck on Hyde. The bill requires an audit of states’ adherence to the amendment.

“We had Republicans saying, strictly, without any movement at all, ‘there will never be a scenario in which a single solitary Republican will allow federal funding to pay for an abortion period.’ The Democrats were saying, ‘well, we don’t think that’s happening and we’re not looking to change the status quo.’” Moreno said. “What we came down to is ‘let’s do an audit.’”

Senate Minority Whip Dick Durbin also told reporters Thursday that Democrats had concerns about Moreno’s proposal, but said that did not mean conversations about reviving the subsidies were over.

“There are a lot of issues that need to be resolved,” Durbin said. “I hope we can do it because millions of people have seen their premiums go through the roof.”

Sen. Angus King, an independent who caucuses with Democrats and was involved in the health care negotiations, said Wednesday he had yet to review the text, but added he felt hopeful about the working group’s product.

“We have agreement,” King said. “The question now is does the text reflect the framework.”

Moreno said Thursday the bill represents Republicans’ best and final offer on health care. He said he is not sure whether the proposal would have majority support from the Republican Conference as-is, and he is not willing to negotiate further.

“This is my final offer,” Moreno said. “It’s my final offer in a sense that there’s no way I can get 35 Republicans to vote for anything more.”