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By Jasmine Laws
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Senate Democrats unveiled a proposal on Wednesday evening that would reverse the nearly $1 trillion in cuts to Medicaid implemented under President Donald Trump's One Big Beautiful Bill, among other measures.
The proposal has already been rejected by Republicans, and Senate Minority Leader Chuck Schumer told reporters that as a result, they could be "headed" for a government shutdown, The Hill reported.
Newsweek reached out to Schumer, House Speaker Mike Johnson and Senate Majority Leader John Thune via email for comment.
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Why It Matters
After House Republicans shared their proposal earlier this week, receiving minimal support from Democrats, concerns over a potential government shutdown have been escalating.
Congress must allocate funding to more than 400 government agencies before October 1, which is the start of the fiscal year; however, it is often the case that lawmakers are unable to meet this deadline and instead pass stopgap legislation to keep the government operating while it finishes its plans.
If no legislation is passed by October 1, the government is required to shut down, meaning all government agencies must cease all nonessential work.
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What To Know
Alongside overturning the cuts to Medicaid under Trump's budget bill, the Democrats' proposal would also permanently extend the enhanced health insurance premium subsidies under the Affordable Care Act (ACA).
These subsidies are currently set to expire at the end of the year, after the Trump administration chose not to renew them. As a result, many American families will see their health insurance premiums rise by hundreds, even thousands, of dollars in the new year.
Speaking to reporters after unveiling the plan, Schumer said, according to The Hill, that "the contrast between the Democratic budget proposal and the Republican proposal is glaring."
"The Republicans want the same old status quo—rising costs, declining health care. Democrats want to meet people's needs by improving health care and lowering costs, in health care and many other places," he added.
Johnson reportedly said there was "zero chance" the Republicans would undo the cuts to Medicaid, and that the ACA subsidies were a "December policy issue, not a September funding issue."
The Democrats' proposal not only addressed health care but would also unfreeze $5 billion worth of foreign aid funds halted by Trump at the start of the year, extend various fiscal forms of assistance for veterans, and make changes to Medicare, among other provisions.
It would also provide a significantly higher sum, a total of around $200 million, than the House Republicans' proposal to protect members of the House and Senate, as well as an additional $140 million to protect the Supreme Court and federal courts from threats.
The Republicans' proposal, shared earlier this week, allocated $58 million to protect Supreme Court justices and $30 million to protect members of Congress.
What People Are Saying
House Democratic Leader Hakeem Jeffries and Senate Democratic Leader Chuck Schumer, in a statement released on Tuesday: "The House Republican-only spending bill fails to meet the needs of the American people and does nothing to stop the looming healthcare crisis. At a time when families are already being squeezed by higher costs, Republicans refuse to stop Americans from facing double-digit hikes in their health insurance premiums.
"By refusing to work with Democrats, Republicans are steering our country straight toward a shutdown. President Trump called the play last week when he told Congressional Republicans to jam a partisan spending bill down the throats of the American people without Democratic support."
"Instead of governing, Republicans are once again taking orders from Donald Trump, hurting the American people and recklessly marching our nation to the brink of a shutdown."
Senator John Kennedy, a Louisiana Republican, on X: "Establishment Democrat leaders like Sen. Schumer know their wing of the party is going the way of the dinosaurs. They're desperate—that's why they're obstructing everything President Trump does and trying to shut down the government for no reason."
What Happens Next
Republicans need support from at least seven Senate Democrats to pass a government funding bill. The longer it takes for the two parties to negotiate a resolution, the higher the likelihood of a shutdown on October 1.
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