Government Shutdown Ends, but ACA Subsidies Remain Uncertain

On Wednesday night, President Donald Trump signed a government funding bill, bringing an end to a record 43-day government shutdown. Democrats aimed to extend enhanced tax credits, which are expiring at the year's end, and help lower the cost of health coverage through the Affordable Care Act (ACA) marketplaces. They declined to support a short-term spending bill that did not include this priority, according to The Associated Press, reported on Thursday.

“House and Senate Republicans say they will negotiate with Democrats on whether to extend COVID-era tax credits that help tens of millions of Americans afford their health care premiums,” Mary Clare Jalonick reported for APNews. “But,” Jalonick added, “finding bipartisan agreement could be difficult, if not impossible.”

Jalonick reported that Republican senators pledged to hold a vote by mid-December on extending the ACA subsidies. However, the result is uncertain, as many Republicans have clearly indicated they prefer the credits to expire. House Majority Leader Steve Scalise (R-LA) said on Wednesday that he wouldn't commit to such a plan, according to Aimee Picchi with CBS News.

Picchi noted that without the tax credits, low- and middle-income households that previously qualified for the credits would likely see their ACA premiums more than double next year, increasing from an average of $888 in 2025 to $1,904 in 2026, according to a KFF analysis.

“President Donald Trump has called for sending money saved from not extending the tax subsidies to Americans to use to purchase other types of insurance,” Julia Bonavitacola wrote for AJMC. “It is unknown how feasible this plan is and whether this plan would lead to higher healthcare costs, with some experts suggesting that it would be easier for insurance companies to pocket more money that they collect on premiums.”