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Friday, October 16, 2026
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Senate Republicans Back Trump's Proposal to Replace Affordable Care Act

American lawmakers are working through the weekend for the first time since the federal closure began more than a month ago, but expectations for a bipartisan agreement on how to resolve the standoff appeared to recede as Republican senators floated a proposal toxic to Democrats: scrapping the ACA, known as Obamacare.

Deepening Impact of Government Shutdown

The impact on Americans from the lengthiest shutdown of the US government in history deepened on Saturday, as federal workers went without pay, airlines were compelled to cancel flights and SNAP benefits have been postponed for 42 million Americans.

President's Plan from Florida Resort

As Saturday's meeting got under way, Republican senators embraced a proposal made on social media early Saturday by Donald Trump from his golf course in West Palm Beach, for subsidies to be substituted by health savings accounts.

"I am recommending to Senate Republicans that the Hundreds of Billions of Dollars currently being sent to profit-driven Insurance Companies in order to save the bad Healthcare provided by ObamaCare, BE SENT DIRECTLY TO THE PEOPLE SO THAT THEY CAN PURCHASE THEIR OWN, MUCH BETTER, HEALTHCARE," Trump wrote.

GOP Endorsement

Several Republican senators praised the proposal, which is comparable with a alternative for Obamacare proposed in 2017.

"We're going to replace this failing program with something that is truly better for the consumer," one senator said.

Another senator praised Trump's proposal on social media, and stood next to a large print of Trump's post as he addressed on the Senate floor.

"I am drafting the bill right now," a third senator wrote in response to Trump's proposal. "We need to stop taxpayer money from going to insurance companies and instead give it directly to Americans in health savings accounts and let them buy the medical coverage they want."

Opposition Response

Democratic lawmakers expressed alarmed reactions to Trump's proposal.

"In other words, Donald Trump's 'concept of a plan' for health care is another calculated attempt to eliminate Obamacare," one Democratic senator stated. "This is the same failed Republican plan that's been rejected by the public and Congress."

Another lawmaker reacted to the censure of insurance companies by posting: "Well, Trump and the Republicans dislike how the big, bad insurance companies are ripping-off Americans. Really? Then I applaud your support for universal healthcare."

Ongoing Talks

The Senate adjourned without finding a solution, but Senate Republican leaders have signaled an willingness to an emerging proposal from a small group of moderate Democrats to terminate the shutdown in return for a future vote on the Obamacare subsidies.

One Democratic senator, who is spearheading the negotiations among centrists, said that Democrats "require another way ahead" after Republicans rejected an offer to reopen the government and continue the subsidies for a year.

Another leading Democratic lawmaker continued in maintaining that Republicans should accept a 12-month continuation of the subsidies before negotiating the future of the tax credits.

"Inaction is derelict because citizens will go bankrupt, people will lose insurance, people will get more ill," the senator said in a Senate address. "That's what will happen if this Congress does nothing."

Partisan Dynamics

Not one of the Republican senators seemed to address the fact that patients would still need to buy coverage from the same insurance companies, or that Republican legislators need the backing of several Democrats to restart the government, and the concept of eliminating and substituting Obamacare with HSAs is unlikely to earn a solitary Democratic vote.

Several observers suggested that the essence of such a plan would eliminate the ACA's mandate that carriers cover individuals with pre-existing conditions.

After his golf outing, Trump went back to his residence and reiterated on his demand that Republicans stop seeking compromise and try instead to eliminate and overhaul Obamacare with a iteration of the proposal that failed to secure enough support in 2017.

AM
Written by

Amanda Morgan

Elara Vance is a financial analyst with over a decade of experience in forex and crypto markets, specializing in algorithmic trading strategies.

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