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(Bloomberg) — Senate Democrats on Friday walked back their demand to end the U.S. government shutdown, but are pushing for a one-year extension of expiring health care subsidies in exchange for their votes on a temporary spending bill.
Affordable Care Act subsidies have been at the center of the debate during the 38-day shutdown, the longest in US history, and the ongoing standoff on the issue shows the two sides remain far apart.
Senate Democratic leader Chuck Schumer called it a “simple compromise” and a “fair proposal.”
“The Senate could do that within a matter of hours,” Schumer said in the House.
But Senator Steve Daines, a Montana Republican who has close ties to the leadership, said the GOP would reject the compromise.
“No, we’re not going to do that,” Danes said on Fox News. “Look, we have said open the government.”
Airlines across the US have canceled flights scheduled for the coming days. The U.S. Transportation Department and FAA earlier this week ordered airlines to cut flights at 40 major airports, starting with a 4% cut on Friday and increasing to a 10% target by the end of next week.
Transportation Secretary Sean Duffy said on Fox News that flight cuts in the US could increase by 20% if air traffic control staffing conditions worsen due to the government shutdown.
Food aid has been halted for 42 million Americans. While a federal court judge on Thursday ordered the Trump administration to release funds for food aid, the White House is appealing the decision.
Democrats had originally sought $1.5 trillion in spending, which included a $350 billion permanent extension of ACA tax credits and repeal of Medicaid work requirements passed by Republicans this year.
The Senate is set to hold a procedural vote later Friday on a bill that would pay federal workers who have gone without pay during the shutdown.
Senate Majority Leader John Thune has threatened to hold a vote over the weekend on a stopgap bill to keep lawmakers in Washington to work on a shutdown agreement.
Thune has said he will promise to hold a vote on ACA tax credits this year but cannot promise they will pass. House Speaker Mike Johnson has declined to commit to a vote.
–With assistance from Yash Roy.
(Updated with Danes comment)
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