On November 7, 2025, Senate Democrats presented a proposal aimed at reopening the government, which includes a one-year extension of expiring Affordable Care Act (ACA) subsidies alongside a series of funding measures. Senate Minority Leader Chuck Schumer, D-N.Y., introduced the offer, which features a 'clean' continuing resolution to maintain current spending levels and a package of three bipartisan appropriations bills to fund certain departments for the entire fiscal year.

Schumer emphasized the need for a new approach after multiple failed votes, describing the proposal as 'a very simple compromise.' The short-term extension of health care funding is intended to avert significant insurance cost increases for millions of Americans enrolled in Obamacare. Additionally, Democrats suggested the formation of a bipartisan committee to negotiate a more sustainable solution.

Schumer stated, 'This is a reasonable offer that reopens the government, addresses health care affordability, and initiates a process for negotiating reforms to the ACA tax credits for the future.' He urged Republican senators to accept the proposal, indicating that the responsibility now lies with them.

In response, Senate Majority Leader John Thune, R-S.D., labeled the Democratic offer a 'nonstarter,' asserting that the ACA extension should be part of negotiations that occur only after the government is reopened. Thune remarked, 'We need to vote to open the government — and there is a proposal out there to do that — and then we can have this whole conversation about health care.'

The proposal originated from Senator Gary Peters, D-Mich., who engaged in discussions with fellow Democrats and Republicans to explore options for reopening the government. Peters expressed a willingness to compromise but emphasized the necessity for Republican cooperation.

Despite the Democrats' concessions from their initial proposal, which sought a permanent extension of ACA funds and the repeal of Medicaid cuts implemented during President Donald Trump’s administration, Republican senators quickly rejected the offer. Senator Mike Rounds, R-S.D., who has previously advocated for ACA funding, opposed the proposal due to the absence of restrictions on the funds.

Senator Lindsey Graham, R-S.C., criticized the Democratic plan as 'political terrorism,' while Senator John Kennedy, R-La., dismissed it as 'stupid.' Even if the Senate were to pass the measure, it would require approval from the House of Representatives before reaching the President's desk. Speaker Mike Johnson, R-La., indicated that he could not guarantee that the House would support the health care funding extension, while House Minority Leader Hakeem Jeffries, D-N.Y., has previously rejected a one-year ACA funding extension, advocating instead for a more comprehensive solution.