Government shutdown looms after Senate rejects House-passed stopgap funding bill - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Newswires
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Health/Employee Benefits News
Newswires RSS Get our newsletter
Order Prints
September 21, 2025 Newswires
Share
Share
Post
Email

Government shutdown looms after Senate rejects House-passed stopgap funding bill

Alexander BoltonNBC - 4 WCMH

Senate Democrats on Friday blocked a House-passed bill to fund federal departments and agencies for seven weeks, putting Washington on the path to an Oct. 1 government shutdown.

Democrats came together in near unison to defeat the measure on a 44-48 vote, with only Pennsylvania Sen. John Fetterman (D) voting for the Republican-drafted proposal, which passed the House earlier Friday by a 217-212 vote.

Two Republicans voted against the House-passed continuing resolution: Sen. Rand Paul (Ky.), an outspoken fiscal hawk who argued it would prolong Biden-era spending levels, and Sen. Lisa Murkowski (Alaska), a centrist who has voiced grave concerns about the Medicaid cuts Trump signed into law earlier this year. 

Democrats blocked the resolution, which would fund government until Nov. 21, after Republicans defeated an alternative Democratic proposal to fund government until Oct. 31, extend health insurance subsidies and restore nearly $1 trillion in Medicaid funding cuts.

The two failed votes leave Republican and Democratic leaders at loggerheads over how to avoid a government shutdown in only 11 days.

Senate Majority Leader John Thune (R-S.D.) put pressure on Democrats to support the House-passed stopgap funding measure, portraying it as the only bill that has a chance of getting President Trump's signature to become law.

"The Republican bill is a clean, nonpartisan, short-term continuing resolution to fund the government to give us time to do the full appropriations process," he said on the floor.

The GOP leader reiterated that he has no interest in meeting with Senate Democratic Leader Chuck Schumer (N.Y.) to negotiate a compromise measure to keep the government open.

"I made it very clear that I wanted the Senate to return to regular order consideration of appropriations bills. I was not and am not interested in funding government through last-minute backroom deals," Thune said.  

Democrats are pressing Republicans to attach language to the continuing resolution to extend health care premium subsidies under the Affordable Care Act that are due to expire at the end of the year.  

Schumer said Friday that Republicans would be responsible for a shutdown because they are refusing to negotiate with Democrats on the funding plan despite needing Democratic votes to pass it through the Senate.

Schumer pointed out the government didn't shut down under former President Biden and Democrats controlled the Senate majority because they were willing to negotiate.

"When we were in the majority for four years, there was not a shutdown. Not one. Why? Because we did what you're supposed to do — talk in a bipartisan negotiation, and each side has input," he told Senate Republican Whip John Barrasso (Wyo.) during a heated moment on the Senate floor Friday.

"We did it the right way. You are not," he declared.

Republican leaders told House members Friday not to return to Washington until after the funding deadline expires, canceling scheduled votes for Sept. 29 and 30. The gambit gives Democrats the ultimatum of reconsidering the House-passed continuing resolution or triggering a shutdown.

"If Senate Democrats insist on a Schumer Shutdown of the federal government, Members should be prepared to return to DC," the notice sent to members reads.

Some Democratic senators are feeling uncomfortable about their leadership's risky confrontation over government funding, worrying that a shutdown could wind up giving Trump more power to reorganize federal departments and agencies and cherry-pick which federal workers are essential and must continue to work and which workers can be furloughed indefinitely.

Sen. John Fetterman (D-Pa.) told The Hill that fellow Democrats' constant warnings that Trump's overzealous use of power is taking the country on the road to "autocracy" is at odds with their uncompromising position on the short-term funding bill.

Fetterman is warning colleagues that a shutdown would only hand more power to Trump and Russell Vought, the director of the Office of Management and Budget, something Schumer himself warned of in March when he voted for a partisan House-GOP crafted six-month continue resolution.

"If Democrats truly believe we're on a rocket sled to autocracy, why would we hand a shuttered government over to Trump and Vought's woodchipper at the OMB?" Fetterman said in a statement.

"I'm unwilling to vote for mass chaos and run that risk," he added.

But many other Democrats think they have leverage over the White House and Republicans in Congress because of rising health insurance premiums and the unpopularity of the GOP's One Big, Beautiful Bill Act, which cut $1 trillion from Medicaid.

Some Democrats think even if they don't win any concessions from Republicans during a government shutdown, they will score political points by highlighting GOP opposition to extending the enhanced ObamaCare premium subsidies and restoring Medicaid.

"Today, we have a rare moment in the Senate where two bills come to the floor that truly crystallize the contrast between the two parties," Schumer said before the vote.

"The choice is clear now. Our Republican colleagues seem to think Americans are happy with the direction of this country. They're voting like they think the status quo is good enough, even though they've heard from so many of their constituents the fear of hospitals closing, of health care being diminished, of premiums going way up," he said.  

 The alternative Democratic government funding stopgap would have permanently extended the enhanced health insurance premium subsidies at a cost of $349.8 billion over 10 years.

Older

Financial Stocks To Watch Now – September 21st

Newer

The Erosion of Central Bank Independence

Advisor News

  • Gov. Kim Reynolds signs health insurance premium tax increase into law
  • Gov. Reynolds signs temporary tax hike to address Iowa Medicaid shortfall
  • Temporary tax hike to fill Medicaid gap heads to governor
  • Iowa Senate sends health insurer tax increase to governor’s desk
  • Temporary tax hike to fill Iowa Medicaid gap heads to governor’s desk
More Advisor News

Annuity News

  • Corebridge, Equitable merge to create potential new annuity sales king
  • LIMRA: Final retail annuity sales total $464.1 billion in 2025
  • How annuities can enhance retirement income for post-pension clients
  • We can help find a loved one’s life insurance policy
  • 2025: A record-breaking year for annuity sales via banks and BDs
More Annuity News

Health/Employee Benefits News

  • CMS seeks stability in the Medicare market
  • Gov. Kim Reynolds signs health insurance premium tax increase into law
  • Gov. Reynolds signs temporary tax hike to address Iowa Medicaid shortfall
  • Prescription drug pricing needs to change, panelists say
  • VACCINATION COVERAGE BY AGE 24 MONTHS AMONG CHILDREN BORN IN 2021 AND 2022 – NATIONAL IMMUNIZATION SURVEY-CHILD, UNITED STATES, 2022-2024
More Health/Employee Benefits News

Life Insurance News

  • Corebridge, Equitable Merger Creates $1.5tr Platfrom
  • AM Best Removes from Under Review with Positive Implications and Affirms Credit Ratings of Sompo Seguros Mexico S.A. de C.V.
  • Corebridge, Equitable merge to create potential new annuity sales king
  • Aflac adds new long-term care rider
  • AM Best Affirms Credit Ratings of Nan Shan General Insurance Co., Ltd.
More Life Insurance News

- Presented By -

Top Read Stories

More Top Read Stories >

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Elevate Your Practice with Pacific Life
Taking your business to the next level is easier when you have experienced support.

Your Cap. Your Term. Locked.
Oceanview CapLock™. One locked cap. No annual re-declarations. Clear expectations from day one.

Ready to make your client presentations more engaging?
EnsightTM marketing stories, available with select Allianz Life Insurance Company of North America FIAs.

Unlock the Future of Index-Linked Solutions
Join industry leaders shaping next-gen index strategies, distribution, and innovation.

Press Releases

  • RFP #T01725
  • Insurate expands workers’ comp into: CA, FL, LA, NC, NJ, PA, VA
  • LifeSecure Insurance Company Announces Retirement of Brian Vestergaard, Additions to Executive Leadership
  • RFP #T02226
  • YourMedPlan Appoints Kevin Mercier as Executive Vice President of Business Development
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.
Insurance News | InsuranceNewsNet