WASHINGTON (Reuters) -Vice President JD Vance criticized Affordable Care Act tax credits on Sunday, labeling them vehicles for fraud and calling for regulatory reform, even as Democratic lawmakers seek to extend healthcare subsidies in the standoff over the government shutdown.

"The tax credits go to some people deservedly, and we think the tax credits actually go to a lot of waste and fraud within the insurance industry. So we want to make sure that the tax credits go to the people who need them," Vance told CBS News' "Face the Nation."

Vance's view contrasts with the stance of Senate Democrats who have used their legislative leverage for the past two weeks to withhold votes for a stopgap funding bill to reopen government.

Most Democrats in the upper chamber have held out to push for a range of healthcare fixes such as a possible extension of enhanced insurance tax credits that are set to expire at the end of the year.

The shutdown is nearing its third week. Republicans, who control both chambers of Congress, have offered a short-term funding plan until November, and the party's leaders have said that healthcare negotiations can start after Democrats vote to reopen the government.

U.S. President Donald Trump said last week that he was open to negotiations on healthcare policy, but only after the shutdown ends.

"We also think that Obamacare gave the health insurance industry a lot of ridiculous regulation that if we cut out, we can give people access to better healthcare at a lower cost. That's what we're working on," Vance added on Sunday.

More than 24 million Americans are enrolled in the Affordable Care Act marketplace, meant for people who do not have access to insurance through their jobs.

U.S. House Minority Leader Hakeem Jeffries on Sunday defended Democratic opposition to the spending bills ahead of the November 1 start of the annual enrollment period for federal healthcare plans.

"You've got people who are facing dramatically increased healthcare costs because of the refusal of some of my friends on the other side of the aisle to even have a conversation about extending the Affordable Care Act tax credits," Jeffries said during a "Fox News Sunday" appearance. "That's not acceptable in this moment."

(Reporting by Bo Erickson and Ted Hesson; Editing by Sergio Non and Mark Porter)

Vance says ACA credits fuel fraud as Democrats push for extension to end shutdown