Shutdown Risk Rises as GOP, Democrats Clash on Obamacare Funding

With the government funding deadline approaching on October 1, Congress faces a high risk of a shutdown as Republicans push forward with funding bills without conceding to Democrats' demands on health care, particularly regarding the extension of Obamacare subsidies set to expire at the end of the year. Democrats have signaled they will block any stopgap funding measure unless it includes provisions to prevent a sharp increase in health insurance premiums that could affect millions starting January 2026. This standoff highlights the intertwined deadlines of government funding and health care subsidy extensions, complicating efforts to pass a continuing resolution. The House Appropriations Committee has approved two fiscal 2026 spending bills, but broader agreement remains elusive, with Senate votes needed to pass any major legislation. Political leaders, including House Speaker Mike Johnson and Senate Democratic leader Chuck Schumer, have publicly acknowledged the impasse, with the odds of a shutdown rising above 50%. The last government shutdown occurred nearly seven years ago and lasted 35 days, underscoring the significant potential disruption if a deal is not reached soon.