Democrats outline new proposal to end government shutdown

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“Democrats are offering a very simple compromise,” said Senate Minority Leader Chuck Schumer. Republicans denounced the proposal.

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WASHINGTON – Democrats unveiled a potential path out of a record government shutdown Friday.

The plan, which Democrats characterized as a good-faith proposal to Republicans, would codify a one-year extension of health benefits set to expire in early 2026 and raise premiums for millions of Americans. Tax credits for Obamacare enrollees are at the center of the 38-day funding crisis.

Republicans already oppose the deal, and unresolved exchanges virtually ensure the government shutdown will last even longer. But it was also a notable sign that the two sides are coming closer together amid unpaid salaries for hundreds of thousands of people, widespread disruption to travel, worsening food shortages and other impacts that have been deepening for more than a month.

The Democratic proposal includes a proposal to restart the entire government at current funding levels, potentially through next year. Under the framework, lawmakers would simultaneously advance separate budget proposals to provide year-round funding to some federal agencies and new levels of programs.

Additionally, the plan would create a bipartisan commission to continue discussions on reducing health care costs.

“This is a reasonable proposal,” Senate Majority Leader Chuck Schumer (D-N.Y.) said Friday. “Now the ball is in the Republican court.”

Republicans denounced the proposal and continued to accuse Democrats of making unreasonable demands to score more political points following their recent election victories.

Republicans weren’t the only ones to express displeasure with the proposal. Some Democratic politicians also criticized it for the same reason. Sen. Richard Blumenthal (D-Conn.) said the bill also calls for reversing recent layoffs of thousands of federal workers (which have been suspended in court) and guaranteeing back pay for furloughed public employees.

“I’ll be honest with you. It’s not everything I wanted,” he said. “It’s a compromise, and compromise is not a four-letter word.”

For the first time since the shutdown began, senators planned to remain in the Capitol over the weekend in hopes of winning more votes. Senate Majority Leader John Thune (R-South Dakota) told reporters he would force a vote on Friday on a standalone bill that would deliver checks to federal workers who have gone weeks without pay.

“I’m tired of political gamesmanship,” he said.

Zachary Schermele is a Congressional reporter for USA TODAY. You can email us at zschermele@usatoday.com. Follow him on X at @ZachSchermele and on Bluesky at @zachschermele.bsky.social.

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