WASHINGTON – The Senate on Thursday rejected competing health care proposals, making it likely that the enhanced Affordable Care Act (ACA) tax credits will expire at the end of the year. The failed votes underscore the ongoing stalemate in Congress over how to address rising out-of-pocket premium costs for millions of ACA enrollees.
The Democratic plan, tied to ending this fall’s government shutdown, would have extended the enhanced subsidies for three years. It fell 51-48, missing the 60 votes needed for passage, with only four Republicans—Susan Collins of Maine, Josh Hawley of Missouri, and Lisa Murkowski and Dan Sullivan of Alaska—voting in favor. The Republican alternative, which would have avoided extending subsidies but offered $1,000–$1,500 payments into health savings accounts for certain ACA enrollees, also failed on a 51-48 vote, with GOP Sen. Rand Paul of Kentucky voting against it.
Senate Majority Leader John Thune indicated he remains open to bipartisan negotiations on a health care package, but deep divisions in both parties make a deal uncertain. Democrats are pushing for a straight three-year extension, arguing that GOP-backed modifications are impractical with limited time before the new coverage year begins. Many Republicans oppose any subsidy extension, citing wasteful spending that benefits insurance companies, while others remain divided on potential compromises.
The standoff comes as both parties weigh political strategy. Republicans accuse Democrats of prioritizing politics over compromise, while Democrats point to public support for extending subsidies; a recent KFF poll found 74% of Americans favor the move. In the House, bipartisan groups have filed discharge petitions to force votes on compromise subsidy extensions, though it is unclear whether enough Democrats will back these efforts or if Senate Republicans would allow passage even if the House approves a plan.