Democrats Trim Shutdown Demands as Travel, Food Aid Delays Hit

(Bloomberg) — Senate Democrats on Friday pared back their demands to end the US government shutdown but are insisting on a one-year extension of expiring health care subsidies in exchange for their votes on a temporary spending bill. 

The Affordable Care Act subsidies have been at the center of the debate during the 38-day shutdown, the longest in US history, and the continued stalemate over the issue suggests the two sides remain apart. 

Senate Democratic leader Chuck Schumer called it a “simple compromise” and a “reasonable offer.” 

“The Senate could do this within a few hours,” Schumer said on the floor.

But Senator Steve Daines, a Montana Republican with close ties to leadership, said the GOP would reject the deal. 

“No we’re not going to do that,” Daines said on Fox News. “Look, we’ve said open up the government.”

Airlines across the US have canceled flights scheduled for the coming days. The US Transportation Department and FAA earlier this week ordered airlines to cut flights at 40 major airports, starting with a 4% reduction on Friday and increasing to a 10% target by the end of next week.

Flight reductions in the US could escalate to as much as 20% if the ongoing government shutdown leads to worsening air traffic control staffing, Transportation Secretary Sean Duffy said on Fox News.

Food assistance has been paused 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 originally demanded $1.5 trillion in spending be attached including a $350 billion permanent extension of the ACA tax credits and a repeal of Medicaid work requirements passed by Republicans this year.

The Senate later Friday is set to hold a procedural vote 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 votes over the weekend on a stopgap bill in order to keep lawmakers in Washington to work on a shutdown deal.

Thune has said he will promise to hold a vote on ACA tax credits this year but can’t promise they will pass. House Speaker Mike Johnson has refused to promise a vote. 

–With assistance from Yash Roy.

(Updates with Daines comment)

More stories like this are available on bloomberg.com