Uncertain Future for ACA Tax Credits as Shutdown Deal Advances

Tue Nov 11 2025 00:47:46 GMT+0200 (Eastern European Standard Time)

A legislative package aimed to end the longest government shutdown in U.S. history guarantees a vote on Affordable Care Act tax credits in December but leaves many uncertainties for millions of enrollees.

As Congress moves forward with a deal to end the lengthy government shutdown, crucial measures regarding the expiring Affordable Care Act tax credits remain unresolved. The deal, between Senate Republicans and a few Democrats, sets a vote for the subsidies but lacks assurance for action in the House. If Congress does not successfully extend the tax credits, millions could face increased health insurance costs, leading to greater financial strain for those reliant on these benefits. Lawmakers are exploring alternative paths to manage healthcare costs, but significant challenges remain.

NEW YORK (AP) — A legislative package that appears on track to end the longest government shutdown in U.S. history leaves out any clear resolution on the expiring Affordable Care Act tax credits that have made private health insurance less costly for millions of Americans.

The deal agreed to by Senate Republicans and a handful of Democrats on Sunday instead only guarantees a December vote on the enhanced premium tax credits, which are set to expire at the end of the year without congressional action.

House Speaker Mike Johnson, R-La, has not agreed to a matching House vote on the issue, making the chances of an extension increasingly bleak. Some Democratic lawmakers looking to compromise have sought one- or two-year stopgap measures to keep the subsidies alive, but they’ve failed to garner support from Republican leadership.

Meanwhile, some Republican lawmakers and former President Trump have argued for letting the subsidies expire, instead suggesting alternatives such as federal flexible spending accounts for all eligible Americans.

If the current legislative package passes and Congress doesn’t take any other action on health care costs this year, the enhanced premium tax credits that have helped many Americans pay for Affordable Care Act health insurance plans for four years will disappear. On average, this will more than double what subsidized enrollees currently pay for premiums, according to an analysis by the health care research nonprofit KFF.

Such price hikes are already impacting consumers. A Pennsylvania hair stylist, Christine Meehan, shared that her $160 monthly plan is set to rise by $100 next year, alongside higher deductibles. The concerns are echoed among many who may feel the weight of increased financial liability.

If Congress fails to extend the subsidies, there will be ongoing discussions about potential alternative pathways to reduce healthcare costs. Trump has advocated for directing savings from not extending the subsidies back to citizens in direct payments, a sentiment reflected in comments from Republican senators about creating funding solutions akin to health savings accounts.