Shutdown Looms as ACA Subsidies Talks Stall

Congress faces a possible government shutdown at the end of September after talks collapsed over a short-term funding bill, with Republicans pushing for a “clean” continuing resolution and Senate Democrats insisting on extending enhanced Affordable Care Act premium tax credits set to expire Dec. 31 and reversing proposed Medicaid cuts (Democrats have also threatened to withhold approval of the 2026 budget). The timing is urgent as insurers file rates and open enrollment begins Nov. 1, and analysts warn average premiums could rise more than 75% and many people could drop coverage for 2026 if subsidies lapse. President Trump canceled a meeting with congressional Democrats after rejecting their demands, complicating negotiations. A shutdown could furlough tens of thousands of federal workers — including nearly 31,000 on Long Island — halt or reduce services, and cause meaningful economic damage, while agencies say they have provided little public contingency planning. Both parties are maneuvering to avoid political blame, and leaders note a 60-vote threshold in the Senate will be needed to pass funding, leaving no obvious exit strategy as the deadline approaches.