Federal government set to shutdown after Senate can’t reach deal

WASHINGTON — The federal government is headed for a shutdown at midnight after the Senate again failed to pass a stopgap government funding bill. 

On Tuesday, Senate Democrats and Republicans offered up competing measures, both of which were defeated. 

The bill offered by Democrats would have funded the government until Oct. 31. It would have also permanently extended the extra Affordable Care Act subsidies, undone the Medicaid cuts in President Trump’s tax bill, and made it more difficult for the White House to withhold funding appropriated by Congress. The Senate held a floor vote on the Democrats’ bill Tuesday afternoon and no Republicans supported it.

Republicans, meanwhile, proposed passing a clean continuing resolution, which would have extended government funding until Nov. 21. Though the measure did not receive the 60-vote threshold required for cloture, Republicans did pick up two votes compared to the last stopgap funding bill vote on Sept. 19.

Sen. John Fetterman (D-Penn.) was the sole Democrat to vote for the bill last time. This time, he was joined by Sen. Catherine Cortez Masto (D-Nev.) and Maine Independent Sen. Angus King, who caucuses with Democrats. Republican Sen. Rand Paul (Ky.) was the sole Republican to vote against it.

The main issue continues to be the expiring enhanced tax credits for Affordable Care Act marketplace insurance. 

Senate Minority Leader Chuck Schumer (D-N.Y.) said Democrats would vote for a continuing resolution that extends the ACA credits and prevents Republicans from reneging on government spending deals. 

Senate Majority Leader John Thune (R-S.D.) said Republicans would consider extending the ACA credits, but only after reopening the government. No Republicans voted in support of enhanced subsidies in the past, and even those who are open to extending the credits say they want to do so temporarily. Republicans also want to impose income caps on the subsidies, and there are concerns about government-subsidized plans covering abortion.

Democrats are betting that the public will pressure Republicans to extend the ACA credits when they see how much premiums are going to increase without them. KFF predicts that premiums will more than double on average if the credits expire. 

Premium notices start going out tomorrow. 

“They’re going to say, ‘What’s happening?’,” Schumer said. “And we’re going to be right there explaining to them, ‘It’s because the Republicans wouldn’t negotiate with us.’”

Lobbyists say it’s difficult to predict how the public will react to the shutdown, or who voters will blame. 

The Congressional Budget Office estimates that about 750,000 employees could be furloughed each day during the shutdown at a daily cost of roughly $400 million, though that cost would fall if the administration begins firing government employees, as they’ve threatened to. 

Thune said he might hold another vote on the Republican bill this week.