By Mark Swanson | Friday, 07 November 2025 01:52 PM EST
A growing number of Senate Republicans have indicated openness to extending Obamacare subsidies but emphasized the need for reforms, according to Axios. The COVID-era tax credits, critical to Democrats’ push to keep the federal government shut down, are set to expire on December 31 after a five-year window established by Democratic legislation in 2020.
Democrats are demanding that Republicans agree to a permanent extension of the subsidies to end the shutdown and reopen the government. However, Republicans have resisted, arguing that merely prolonging the current system would be ineffective. “Just extending the status quo is like putting fresh paint on rotten wood,” said Sen. John Kennedy, R-La., in the report. “It’s got to be fixed.”
Senate Majority Leader John Thune, R-S.D., acknowledged that a sufficient number of Republicans could support temporary measures with reforms, but most lawmakers are hesitant to engage in discussions until Democrats vote on a continuing resolution to fund the government. Sen. Pete Ricketts, R-Neb., stated, “I won’t even talk about it until after we get done with [the] shutdown.”
House Minority Leader Hakeem Jeffries, D-N.Y., linked Republican proposals to President Donald Trump’s tax cuts, questioning why permanent breaks for billionaires are acceptable but not for working-class Americans. Democrats have previously introduced legislation to make the credits permanent, while Republicans seek compromises.
The debate highlights deepening partisan divisions as both sides navigate competing priorities ahead of critical legislative deadlines.
