The Federal government remains closed entering a second week with negotiations gridlocked. On Monday the Senate rejected two bills to end the shutdown, and the House remains in recess. 

Negotiation Gridlock and the ACA Tax Credits:

• Democratic Stance: Congressional Democrats have made an agreement to fund the government contingent on extending the enhanced ACA premium tax credits, which were originally expanded under the American Rescue Plan Act of 2021 and are set to expire at the end of this year, December 31, 2025. Democrats argue that this extension is crucial to maintaining affordable health care for millions of Americans. 
• Republican Stance: GOP leadership, including those in the House, is calling on Democrats to cease blocking government funding and address the APTC extension separately from the stopgap spending bill (the Continuing Resolution, "CR"). They argue there is still time before the end of the year to deal with the subsidies. Some Republicans also seek to reverse scheduled Medicaid cuts that were part of a 2025 budget reconciliation bill. 

• Essential Services Continue: Activities deemed essential to national security and public safety are generally mandated to continue, though many employees in these roles are working without pay, including: 
  • Health Care Services:  Medicare telehealth flexibilities were extended through various legislative actions through September 30 have lapsed with the shutdown and pre-pandemic rural and facility restrictions continue. 
  • Mandatory Payments: Social Security, Medicare and Medicaid payments continue as they are funded by mandatory spending, not annual appropriations.