The Affordable Care Act (ACA) tax subsidies, which have helped millions of Americans pay for health coverage, have expired as of the end of 2025. This expiration is expected to significantly impact the over 20 million subsidized enrollees in the ACA program, who will now face rising premium costs. According to an analysis by the Kaiser Family Foundation, premiums are projected to increase by 114% in 2026.
The expiration of these subsidies follows a period of intense negotiation and debate among lawmakers. In 2025, Democrats forced a 43-day government shutdown in an effort to address the issue, while moderate Republicans sought a solution to save their 2026 political aspirations. President Donald Trump also proposed a potential solution, but ultimately backed off due to conservative backlash. Despite these efforts, no agreement was reached, and the subsidies were allowed to expire.
There are currently two plans with traction in the House that aim to address the issue. The GOP’s plan, which was advanced on the floor last month, does not address the expiring tax credits. On the other hand, a bipartisan plan calls for a three-year extension of the subsidies, similar to a plan proposed by Senate Democrats. This plan is scheduled for a vote in January and has garnered some hope among Democrats that a three-year extension could be possible.
The expiration of the ACA subsidies has significant implications for millions of Americans who rely on the program for affordable health coverage. With premium costs expected to rise significantly, many individuals and families may struggle to maintain their coverage. The upcoming House vote in January will be closely watched as lawmakers attempt to find a solution to this critical issue. Ultimately, the outcome of these negotiations will have a profound impact on the accessibility and affordability of healthcare for millions of Americans.