Democrats defend COVID-era Obamacare perks — and sidestep cost questions

Several Democratic senators appeared willing to expand Obamacare tax credits in the coronavirus era, holding up spending legislation needed to reopen the government — but they are less prepared to grapple with what that might mean for the nation’s spending.

“I would disagree with the deficit-increasing framework,” Sen. Chris Coons, D-Del., said when asked about the program’s effects on the country’s bottom line.

Others, like Sen. Alex Padilla, Democrat of California, declined to respond.

The country was plunged into lockdown at the beginning of the month when lawmakers failed to agree on a short-term extension of spending that would have funded the government until November 21. But the dispute was not over the package itself. In 2021, congress temporarily expanded eligibility for Obamacare’s enhanced premium tax credits, which are intended to help Americans pay for their health insurance plans amid uncertainty about the pandemic. That led to eligibility expiring at the end of 2025. Democrats have made the program’s continuation a prerequisite for supporting any spending package.

Republicans need at least seven Democrats to advance spending legislation in the Senate, where Republicans must pass the 60-vote threshold to overcome a filibuster. The Republican Party holds 53 seats in the Council.

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According to the Committee for a Responsible Federal Budget, a nonpartisan fiscal policy think tank, continuing to expand appropriations could cost as much as $30 billion annually.

While Republicans see the expiration as an opportunity to return government spending to pre-Covid-19 levels and reduce the national deficit, Democrats have expressed concern about recipients who could face an abrupt end to their federal aid.

“We have literally millions of Americans who will no longer be able to afford their health insurance or will be excluded from health insurance when the tax breaks that make the Affordable Care Act affordable expire at the end of this year,” Coons said, referring to the 2010 health care reforms that put Obamacare into law.

Senate Majority Leader John Thune, R-S.D., speaks to the media next to Vice President J.D. Vance and House Speaker Mike Johnson, R-Los Angeles, ahead of the Sept. 30 deadline for funding the government. (Kevin Lamarque/Reuters)

Other Democrats pointed to health care as a key consideration.

“Republicans need to restore health care to the American people,” said Sen. Mazie Hirono, D-Hawaii. “That’s my position.”

Findings from KFF, a health care policy think tank, indicate that more than 90% of Obamacare’s 24 million enrollees benefit from the enhanced credits.

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Democrats have voted against reopening the government 10 times since the shutdown began.

Lawmakers like Sen. John Curtis, R-Utah, have pushed back against Democrats’ opposition, pointing out that the appropriations were always designed to be temporary — and that it was Democrats who initially included the sunset clause.

“This is a crisis that Democrats have predetermined,” Curtis said. “They’re the ones who put the expiration date on these.”

This is also the position of Senator John Boozman, Republican of Arkansas.

“What worries me is that [the credit expansion] It was done during the pandemic due to the pandemic. The epidemic is over. As a result, you have people getting $300,000 in financial support.”

“So, what we have to do is get the government open, not hold the American people hostage and start talking, because there are going to be some people who are going to be hurt,” Boseman added.

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Boozman isn’t the only Republican concerned about both: ballooning government costs and Americans who would have to adjust their payments to afford health care without subsidies.

Sen. Lisa Murkowski, R-Alaska, who has warned against sudden shifts to health care programs, said talks to boost both priorities have not made much progress.

Senator Lisa Murkowski, Republican of Alaska, during the Congressional Picnic on the South Lawn of the White House in Washington, June 2025. (Al Drago/Bloomberg)

“I’m trying to figure out a way that we can ensure that health care coverage remains for Americans, and we’re not making much progress this week,” Murkowski said.

Other senators hinted that the talks were progressing in some way but declined to describe them.

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Idaho Republican Senator Mike Crapo said: “I will not participate now, because I may or may not participate in any negotiations on the final solution to this matter. At this point, until the Democrats open the government, I will not discuss the details.”

Both chambers of Congress left Washington, D.C., for the weekend. The Senate will return on Monday.