Republicans Introduce Short-Term Spending Bill, Democrats Demand Healthcare Provisions

On Tuesday, October 17, Republican members of the U.S. House of Representatives introduced a short-term spending bill aimed at preventing a government shutdown on October 1. However, the bill does not include the healthcare provisions demanded by Democrats, setting the stage for a contentious battle between the two parties.

The proposed legislation would fund federal government operations until November 21 and allocate a total of 88 million dollars for the safety of legislators, judicial officials, and administrative personnel following the stabbing of a conservative activist, Charlie Kirk. House Speaker Mike Johnson has stated that a vote on the bill is planned for Friday.

Democrats have previously threatened to withhold their support if the Republican-backed bill does not extend subsidies under the Affordable Care Act (ACA). These subsidies are set to expire at the end of the year, and their non-renewal could lead to significant increases in premiums for millions of insured individuals, potentially causing political backlash ahead of the 2026 midterm elections and introducing new uncertainties into the financial markets.

The Republican bill requires at least seven Democratic votes in the Senate to overcome procedural hurdles and reach the 60-vote threshold. However, Democrats insist on including healthcare policies in the bill, while Republicans advocate for a "clean" short-term spending bill, leaving healthcare issues to be discussed in December.

The short-term bill details include funding the government at current levels for seven weeks until November 21. In terms of security, the bill provides 30 million dollars to help legislators reimburse local police for security costs, 30 million dollars for administrative department security, and 28 million dollars for judicial department security. The bill also includes a provision requested by the White House, allowing Washington D.C. to use its own tax revenue. This provision was omitted in the previous temporary bill, leaving the district with a 1 billion dollar funding gap.

Johnson stated that this bill buys more time to reach an agreement on the full-year spending bill. He said, "We need responsible choices to keep the government open, and the Republican Party is committed to achieving this goal."

However, there is growing opposition within the Republican Party. Before the bill was officially released on Tuesday, four Republican representatives expressed their opposition. Kentucky Representative Thomas Massie stated that he would vote against any temporary bill unless spending is reduced. Indiana Representative Victoria Spartz said she would vote against the bill if the new shutdown deadline is set before major holidays like Thanksgiving, which falls on November 27 this year. Ohio Representative Warren Davidson and Georgia Representative Marjorie Taylor Greene also expressed their intention to vote against the bill.

Facing these defections, Johnson will need to seek Democratic support to pass the bill. Maine Democratic Representative Jared Golden has previously indicated that he will continue to support temporary funding bills, but this may not be enough to bridge the divide within the Republican Party.

Democrats have made it clear that they will not support any bill that does not lower healthcare costs in the U.S. Their demands include extending the expiring ObamaCare premium subsidies, reversing the cuts to healthcare subsidies in the Trump tax law, and preventing the White House from unilaterally reducing medical research funding.

Senate Minority Leader Chuck Schumer warned that while Republicans might pass the bill in the House with party-line votes, they would need 60 votes in the Senate to advance the funding bill. He stated in the Senate on Tuesday, "If Trump says he won't negotiate at all, then that's Trump's shutdown."

Democratic leaders of the House and Senate Appropriations Committees, Rosa DeLauro and Patty Murray, issued a statement saying they have been working closely with their Republican colleagues on a bipartisan plan and urged Johnson and Senate Republican Leader John Thune to join negotiations to avoid the shutdown threat.

Johnson, however, stated on Tuesday that Republicans are "absolutely not" considering reversing any healthcare subsidy provisions. He said, "The debate over ACA subsidies is a policy issue for December, not a funding issue for September."

Congress is under pressure to decide on expanding ACA subsidies. Insurance companies and regulators are currently finalizing rates for next year's ObamaCare plans, and with federal subsidies set to expire, rates are expected to rise in most cases. Consumers will be able to purchase insurance for 2026 starting November 1, and many may be surprised by the higher premiums they will need to pay next year. If no agreement is reached, ObamaCare tax credits will be limited to families with incomes up to 400% of the poverty line.

Thune expressed willingness to discuss maintaining enhanced ACA subsidies but said more time is needed to work out the details. "Right now, we need to keep the government open," the South Dakota senator told reporters. "I don't think there will be anything close to ready by the end of this month."