Divided Senate Rejects Dueling Obamacare Bills

By: Joshua Arnold, originally published December 12, 2025, The Washington Stand

A Senate effort to address expiring subsidies on Obamacare premiums fell short on Sunday after a Democratic proposal and a Republican proposal both failed to clear the 60-vote threshold to advance. Senate Majority Leader John Thune (R-S.D.) had promised Democrats a vote on health care measures as part of the deal to end the government shutdown, but he never promised Republican support for subsidies “spending taxpayer dollars on abortion or gender transition procedures,” as FRC President Tony Perkins  described  them in October.

The bill advanced by Democrats  proposed  a clean, three-year extension of enhanced Obamacare subsidies that Democrats first authorized without GOP support during the COVID era. Republicans have never voted for the subsidies and had repeatedly expressed concerns about the lack of guardrails against funding abortions or gender transition procedures.

“Democrats continue to be dismissive about Hyde protections, because they say they’re effectively in there,”  complained  Senator Thom Tillis (R-N.C.). “If they’re interested in actually extending the subsidies, if they’re effectively in there, then why should they worry about us putting language in that assures that?”

Last month, Perkins  argued  the Democrats had to pass enhanced subsidies “because Obamacare is a failed system. The Affordable Care Act is an example of government malpractice — it’s a failure. These subsidies are riddled with waste, fraud, and abuse — and worse, they fund insurance plans that cover abortion and gender transition procedures.”

In his final pitch, Senate Minority Leader Chuck Schumer (D-N.Y.) simply argued, “Our bill is the last train leaving the station,” apparently without realizing that this was an argument against boarding a train in the wrong direction.

However, the Democratic bill failed to clear the 60-vote threshold in a 51-48 vote. Republican Senators Susan Murkowski (Alaska), Dan Sullivan (Alaska), Susan Collins (Maine), and Josh Hawley (Mo.) voted with Democrats for the plan, not wanting to see the subsidies lapse (Steve Daines, R-Mont., was absent for both votes).

The bill advanced by Republicans  proposed  to repurpose the expiring subsidies to expand health savings accounts (HSAs), an alternative to major insurance companies that gives more control to the user. The bill directed the Department of Health and Human Services to load up to $1,500 into “HSAs paired with bronze or catastrophic plans on the Obamacare exchanges in 2026 and 2027.” It also ended the controversial funding for abortion and gender transition procedures.

The Republican bill won soft support from President Trump, who  said  he “likes the concept … of money going directly people, not to the insurance companies.” Trump left the legislative details up to the legislature.

However, the Republican bill also failed in a 51-48 vote, with Senator Rand Paul (R-Ky.)  voting  against the measure because he believed it amounted to “Obamacare lite.”

The Senate’s failure to advance either measure Thursday prompted discussion of a renewed attempt to address the enhanced Obamacare subsidies, which expire on December 31, before the Senate recesses for Christmas break. If no solution is found,  20 million  Americans who locked into an Obamacare health plan may see their premiums  increase  by $1,000 over the next year.

“When we get through this exercise this week the question is, ‘Are there enough Democrats who want to fix the problem?’”  asked  Leader Thune the day before the vote. “Obviously, we don’t have a lot of time to do this, but I think there are ways in which you could, where there’s a will.”

The House of Representatives has also discussed various health care proposals, with some members circulating discharge petitions to bring their measures to the floor. Republican leadership is also  working  on a plan, which they could unveil as early as this weekend.

Joshua Arnold is a senior writer at The Washington Stand.

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