Boehner withdraws ACA defunding demands as default crisis looms Senate passes compromise resolution

On October 16, 2013, with the nation hours from breaching its debt limit, House Speaker John Boehner withdraws his demand to defund the Affordable Care Act. Senate negotiators led by Majority Leader Harry Reid and Minority Leader Mitch McConnell reach a compromise. The deal keeps government funding at sequestration levels, suspends the debt limit until February 7, 2014, and includes a minor ACA concession requiring stricter income verification. The Senate passes the bill, and Boehner allows it to advance to the House floor despite conservative opposition. The House approves the measure, and President Obama signs it, ending the 16-day shutdown. The episode damages Republican political standing, with polling showing majorities blame Republicans for the impasse. The shutdown costs the economy $24 billion and reduces annualized fourth-quarter GDP growth by 0.6%.