House Republicans have proposed a stopgap funding bill that would keep federal agencies operating through Nov. 21, but the proposal does not extend ACA enhanced premium tax credits.
The bill, if passed, would avert a government shutdown on Oct. 1. Republican leaders plan to call a floor vote on the measure later this week, according to Politico.
The ACA’s enhanced premium tax credits are set to expire at the end of 2025. House Speaker Mike Johnson said lawmakers have “until the end of December to figure that all out,” Politico reported.
Democratic leaders Sen. Chuck Schumer and House Minority Leader Hakeem Jeffries said the stopgap bill “fails to meet the needs of the American people and does nothing to stop the looming healthcare crisis,” according to the report. Democrats previously said they will not sign onto any measure that excludes an extension of the ACA subsidies.
Senate Majority Leader John Thune said Republicans are open to addressing the expiring subsidies, but said those talks will happen later this year, The Hill reported Sept. 16. He said the stopgap funding measure needs to be kept “clean” of controversial policy riders.
“I think the ACA subsidies will be an issue that will be addressed but I think right now we’ve got to keep the government open so we can do appropriations bills and work on that, with that solution,” he said according to the report.
Eighteen Democratic governors on Sept. 15 signed a letter to Congressional leaders encouraging the extension of ACA enhanced premium tax credits.
“The timing couldn’t be more urgent,” the letter said. “Insurers are already setting 2026 rates. If Congress acts quickly, states can lock in lower premiums and spare families a wave of sticker shock this fall. If not, the damage will be felt for years.”
The governors of Delaware, California, Colorado, Connecticut, Illinois, Kentucky, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Mexico, New York, North Carolina, Oregon, Rhode Island, Washington and Wisconsin were all signatories.
“Hard-working American families, older Americans not yet on Medicare, small business owners and rural communities — where marketplace coverage is often the only option — will be hit the hardest,” the letter said.
Federation of American Hospitals President and CEO Chip Kahn also called for a swift extension of the subsidies.
“As time runs out on health care tax credits, sticker shock awaits working families,” Mr. Kahn said in a Sept. 16 statement. “Failure to extend the tax credits before open enrollment starts on Nov. 1 will mean that millions face skyrocketing premium costs. Without congressional action, millions of Americans — including small business owners, farmers, and more — will be priced out of coverage completely.”
