Congress deadlocked on help for health care premiums as government shutdown looms

David Lightman, The Sacramento Bee on Sep 22, 2025

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WASHINGTON — The budget stalemate that threatens a potential federal government shutdown next week is also a battle over whether to continue helping consumers pay for their health care — help that about 1.8 million Californians use.

If the federal enhanced subsidies end, those state residents could see their monthly premiums nearly triple or quadruple next year.

Those subsidies are due to stop at the end of this year. Democrats and some Republicans in Congress want them to continue, but GOP leaders so far have balked at taking action now.

Keep balking, Democrats warn, and we’re going to hold off approving any federal budget for fiscal 2026, which begins Oct. 1.

If no overall budget plan is approved by then, much of the government would shut down. The Republican-led House passed its budget plan Friday with one Democrat and 216 Republicans supporting it.

Across California, the impact of cutting the subsidies would be a huge hit.

Premium tax credits started in 2014 and were expanded seven years later.

Under Obamacare, consumers have a choice of different plans. Gold and platinum, for instance, have more expensive premiums but usually require lower out of pocket expenses.

KFF, the nonpartisan group that conducts health care research, estimated that in the Sacramento area, a 40-year-old with a $31,000 income, who paid $58 a month for a “silver plan,” with more moderate deductibles, would see the payment go to $153.

A 60-year-old couple with an $82,000 income, who paid $581 monthly, would pay $2,551.

Is a shutdown imminent?

The Republican budget would have continued funding the government through Nov. 21, but did not include extending the enhanced subsidies. California’s lawmakers voted along party lines.

“I do not support shutting down the government, but I will not stand by and allow my constituents to face higher health care costs or see their care stripped away,” said Rep. Jim Costa, D-Calif.

Rep. David Valadao, R-Calif., supports extending the subsidies for a year. But he voted for the budget last week, saying “Government shutdowns are unproductive, cost billions, and disrupt the services Americans depend on.”

The bill, he said, should give Congress sufficient time to come up with a plan to keep the government running through the end of fiscal 2026 on Sept. 30 of next year.

Rep. Adam Gray, D-Calif., is the lead sponsor on separate legislation that would permanently extend the subsidies. It has 82 co-sponsors. Gray did not vote last week on the budget but said he opposed the Republican plan.

Voting on a budget

In the Senate, the plan to keep the government open until Nov. 21 failed in a largely party-line vote. A Democratic alternative that included making the subsidies permanent and restoring some Medicaid cuts also failed.

Congress is out this week for the Jewish New Year, and the Senate returns next Monday. The House is out until Oct. 1.

The blame game, as Washington hurtles towards a shutdown, has begun.

“We’re on the verge of a government shutdown because Chuck Schumer is captive to the extremists in his party,” tweeted Rep. Kevin Kiley, R-Calif. Schumer, D-N.Y., is the Senate minority leader.

Democrats have a much different view. “Democrats don’t want a shutdown. We offered a plan to keep the government open and protect health care. Republicans killed it,” Sen. Alex Padilla, D-Calif., tweeted.

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