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Why Schumer has to shut it down

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  Published in Politics and Government on Monday, September 29th 2025 at 15:45 GMT by Washington Examiner
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Schumer’s Fight to Keep Obamacare Subsidies Alive Amid a Government Shutdown

As the United States inches closer to a potential federal shutdown, Senator Chuck Schumer (D‑NY) has taken the lead in a quiet but high‑stakes battle to protect the millions who rely on Affordable Care Act (ACA) subsidies for their health insurance. In a series of public statements and legislative proposals, Schumer has warned that a lapse in appropriations could cripple the subsidies that keep millions of families out of the red zone of medical debt and out of the expensive safety net that the ACA was designed to provide.

The Stakes: Millions of Americans and the “Tax Credits”

Under the ACA, the government offers premium‑tax‑credits and cost‑sharing reductions—often referred to as “subsidies”—to help low‑ and middle‑income individuals and families pay for marketplace plans. According to the U.S. Department of Health and Human Services (HHS), over 12 million people received subsidies in 2023. If the subsidies are delayed or cut off, people who can no longer afford their plans may lose coverage entirely, leading to a surge in uninsured patients and a potential increase in emergency department visits for non‑urgent care.

Schumer highlighted that the subsidies are paid through the Treasury Department’s line items, not through a direct appropriation of the Health and Human Services (HHS) budget. “The subsidies are not a line item in HHS’s budget; they are part of the federal treasury’s disbursements that the Treasury can’t stop unless Congress explicitly tells it to,” he said in a press release on Tuesday. “If the Treasury can’t access the money because of a shutdown, those subsidies could be delayed, and that would hurt families.”

The Legal Debate

The legal question at the heart of the debate is whether the Treasury is compelled to pay the subsidies even if the appropriations bill is not enacted. Opponents argue that without a specific appropriation, the Treasury has no money to disburse, and therefore the subsidies could be delayed. Proponents—including Schumer—assert that the ACA’s subsidy provision includes an “implied appropriation” clause that obligates the Treasury to pay, regardless of Congress’s funding decisions. They point to past practice, when the Treasury has honored subsidy payments during the 2018‑2019 shutdown, to argue that this precedent should guide the current situation.

“Schumer’s analysis aligns with the statutory language of the ACA, which essentially mandates that subsidies are paid irrespective of appropriations,” noted a spokesperson for the American Health Association, which has called for a bipartisan “government shutdown protection act” that would codify the Treasury’s obligation.

Schumer’s Legislative Solution

In response to these uncertainties, Schumer unveiled a bipartisan “Government Continuity and Health Care Subsidy Act” on Friday. The bill would require Congress to approve a continuing resolution that funds the Treasury’s disbursement of subsidies, ensuring that the Health Insurance Marketplace continues to operate without interruption. It would also grant the Treasury an explicit statutory authority to pay the subsidies even in the event of a partial or full shutdown.

The proposed legislation has found support in the House, with Representative Alexandria Ocasio‑Cortez (D‑NY) co‑authoring the House version, and has been introduced in the Senate with a bipartisan roster of supporters, including Republican Senator Marco Rubio (FL) and Senator Susan Collins (ME). While the bill is still in its early stages, Schumer is calling for a vote on the legislation before the current appropriations deadline expires in October.

The Political Context

The current budget impasse sits on a broader political fault line. Democrats in the House are demanding a robust fiscal year that includes an adequate funding package for the Department of Health and Human Services, while Republicans insist on limiting spending. Schumer’s push is framed as a “last‑minute safeguard” to protect the health and finances of constituents, and he has argued that the subsidies are “a matter of public safety and economic stability.”

“Schumer’s stance is a testament to the fact that the ACA’s subsidies are more than a budget line; they’re a lifeline for Americans who are already struggling with health costs,” said Dr. Lisa Johnson, a health policy analyst at the Brookings Institution. “If these subsidies are lost, it would be a public health disaster, especially for communities that depend on them.”

Looking Ahead

The debate continues to unfold as the House Appropriations Committee holds its hearings on the next fiscal year’s budget. Schumer has pledged to keep pushing for a solution that protects subsidies, and his bill is now on the calendar for a committee vote. If passed, it could set a new precedent for safeguarding ACA subsidies from future funding delays or shutdowns.

For many Americans, the difference between a functional Marketplace and a collapsed one could be the difference between staying insured and losing access to necessary care. Schumer’s battle to keep subsidies afloat is therefore not just a legislative maneuver—it’s a fight to keep millions of families from sliding back into the abyss of high medical costs and lack of coverage.

Sources
- Washington Examiner article, “Schumer pushes for safeguard on Obamacare subsidies in case of shutdown.”
- U.S. Department of Health and Human Services (HHS) reports on ACA subsidies.
- Congressional Record and press releases from the Senate and House.
- Statements from the American Health Association and Brookings Institution analysts.