GOP Leadership Explores Options as Shutdown Talks Continue
Republican leaders on Capitol Hill are quietly exploring ways to extend key Affordable Care Act (ACA) insurance subsidies before they expire on December 31, according to multiple people familiar with the discussions. The internal talks, involving senior congressional figures and White House officials, mark the first concrete signs that the GOP may be willing to negotiate on one of the central issues driving the current government shutdown.
While Republican leadership continues to insist publicly that no deal will be considered until Democrats agree to reopen the government, behind the scenes discussions have centered on how to structure a limited, reformed version of the ACA subsidies. One option under consideration would attach a two-year extension of scaled-back subsidies to a bipartisan funding package or a long-term stopgap bill early next year.
Balancing Politics and Policy
Key Republicans are weighing several potential restrictions on the program, including an income cap for beneficiaries, a minimum out-of-pocket premium, or a gradual phase-out of the current subsidy structure. The idea, sources said, is to maintain a safety net while aligning the policy more closely with conservative priorities.
Speaker Mike Johnson faces a difficult task in steering such a plan through the House. A vocal bloc of hard-line conservatives remains adamantly opposed to any continuation of the ACA framework, which they still view as a hallmark of Democratic overreach. To bypass internal resistance, leadership is reportedly considering advancing the measure under “suspension of the rules” — a procedural move that would require a two-thirds bipartisan majority instead of a simple party-line vote.
For that strategy to work, officials said, President Donald Trump would need to publicly endorse the plan. His support could bring skeptical Republicans on board and give political cover to lawmakers wary of backing any legislation that resembles Obamacare.
Searching for a Middle Ground
The White House has participated in preliminary talks on how to structure the subsidies’ extension and what conservative health policies might be included to attract GOP votes. Among the provisions being discussed are expansions of tax-free Health Savings Accounts (HSAs) and association health plans, both long-standing Republican proposals.
House Majority Leader Steve Scalise has signaled that he wants to see those elements incorporated to make the package more palatable to conservatives. In the Senate, Majority Leader John Thune has called for “new restrictions” on the ACA subsidies and has floated the idea of pairing the extension with broader health reforms.
Some Freedom Caucus members are cautiously open to negotiation. Rep. Andy Harris of Maryland said he would prefer a standalone health bill rather than attaching the measure to larger spending legislation. Still, he acknowledged that his position would depend on “what the whole package is” and whether it includes a timeline for winding down the Covid-era subsidy expansions.
“If you had tremendous savings over 10 years and were able to wind down the enhancements, yeah, we’ll look at anything,” Harris said.
Possible Compromise, Uncertain Outcome
Rank-and-file Democrats have indicated they may accept certain limits, such as income caps or premium requirements, but a total phase-out of the subsidies remains a nonstarter. Even so, both parties appear to recognize that a bipartisan agreement will be necessary to avoid a lapse in health coverage for millions of Americans enrolled through the ACA marketplace.
Rep. Chip Roy of Texas struck a cautiously optimistic tone, suggesting that conservatives could support a deal if it includes policies expanding “freedom and independence for patients and doctors.” He listed direct primary care and broader access to HSAs as examples. “You wrap that in then with whatever it takes to get the votes,” he said. “I’m always open to that.”
Despite the deep divisions, the quiet momentum building within GOP ranks signals that leaders are at least preparing for a compromise once the shutdown ends. Whether those talks will result in a workable bipartisan agreement — or another political standoff — may determine the future of the Affordable Care Act’s most significant remaining provisions.