Enhanced ACA Subsidies Set to Expire as House Vote Nears in Early January

Millions could see 2026 premiums surge, with KFF estimating average costs would more than double without an extension.

Overview

The expanded premium tax credits enacted in 2021 are scheduled to lapse on Dec. 31, affecting more than 20 million marketplace enrollees.
A discharge petition signed by four Republicans positions the House for an early January vote on a multi‑year extension, with Senate prospects still uncertain.
KFF projects average annual premiums for subsidized enrollees would jump from about $888 in 2025 to roughly $1,904 in 2026 if the enhancements end.
In Michigan, about 484,000 residents benefited from the enhanced credits, and estimates suggest roughly 137,700 could lose ACA coverage, with separate proposals potentially reducing Medicaid rolls further.
Democrats urge renewal to prevent coverage losses, some Republicans argue the subsidies aid higher earners unfairly, and President Donald Trump opposes extending them as he discusses convening insurers to seek cost reductions.