Partisan Fight Over Healthcare Subsidies Traps Government in 35-Day Shutdown

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Tuesday, Nov 4, 2025 1:09 pm ET2min read
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- U.S. government shutdown hits 35 days, matching 2018-2019 record due to partisan disputes over healthcare subsidies and funding.

- Democrats demand ACA premium subsidy extension, while Republicans oppose tying funding to pandemic-era programs, causing unpaid workers and service disruptions.

- Economic risks grow with potential $1.4B losses if shutdown extends, as military pay and food assistance programs face critical strain.

- Senate shifts toward seeking 2026 funding extension after failed short-term bills, highlighting deepening political divisions and governance challenges.

The U.S. government shutdown entered its 35th day on Nov. 4, 2025, tying the longest in history as partisan gridlock between Democrats and Republicans shows no sign of abating. The deadlock, centered on disagreements over funding for federal operations and the extension of pandemic-era healthcare subsidies, has left hundreds of thousands of federal workers unpaid and disrupted critical services. With the Senate set to vote for the 14th time on a Republican-backed stopgap funding bill, lawmakers remain entrenched in a battle that risks economic fallout and growing public frustration.

The current shutdown mirrors the 35-day lapse in 2018-2019, which was driven by a dispute over then-President Donald Trump's demand for $5.7 billion in border wall funding. This time, the impasse stems from Democrats' refusal to approve a funding measure without an extension of Affordable Care Act (ACA) premium subsidies, which expire at the end of December. Senate Majority Leader John Thune, R-S.D., acknowledged the Nov. 21 deadline in the House-passed bill is no longer feasible, signaling a shift toward seeking a longer-term funding solution. "The date is lost," Thune said, adding he is open to extending government funding into early 2026, according to an an ABC News report.

The economic costs are mounting. The Congressional Budget Office estimated that a four-week shutdown could reduce fourth-quarter GDP growth by one to two percentage points, with losses climbing to $1.4 billion if the lapse extends to eight weeks, according to a Bitget article. Federal workers, many of whom rely on paycheck advances or food assistance, have become emblematic of the crisis. Meanwhile, food assistance programs like SNAP are operating at half-capacity, leaving millions struggling to afford groceries. Treasury Secretary Scott Bessent warned last week that military pay would be at risk by Nov. 15 without a resolution, Just The News reported.

Democrats, led by Senate Minority Leader Chuck Schumer, D-N.Y., have framed the dispute as a moral issue. "Americans are on the brink of a healthcare crisis unlike we've seen in our lifetimes," Schumer said, accusing Republicans of prioritizing partisan goals over public needs. Republicans, however, argue that tying funding to ACA subsidies is a negotiating tactic. "The victims of the Democrats' shutdown are starting to pile up," Thune said, urging an end to what he called "reckless" Democratic obstruction, according to U.S. News.

Historically, the 1995-1996 shutdown (21 days) and the 2013 shutdown (16 days) highlight the increasing frequency of such crises in polarized Washington. The current stalemate has already surpassed the 1995-1996 duration and now matches the 2018-2019 record. With Veterans Day recesses looming and mid-term election dynamics shifting, lawmakers face mounting pressure to act. Yet, with no compromise in sight, the government shutdown remains a stark testament to the challenges of governing in an era of deepening division, as noted by TradingView.

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