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50m ago

Government Shuts Down Over Clash on ACA Subsidies and Medicaid Cuts

The fight centers on expiring ACA tax credits that KFF says would more than double many enrollees’ premiums next year.

House Democrats prepare to speak on the steps of the Capitol to insist that Republicans include an extension of expiring health care benefits as part of a government funding compromise, in Washington, Tuesday, Sept. 30, 2025. (AP Photo/J. Scott Applewhite)
People sign up for health insurance through Covered California at the Asian Health Services offices in Oakland in January 2017. Nearly 1.7 million Californians could soon face steep increases in Covered California premiums if Congress does not extend federal subsidies.
Senate Minority Leader Chuck Schumer, D-N.Y., turns to Sen. Brian Schatz, D-Hawaii, while speaking with reporters as the government lurches toward a shutdown if the Senate does not pass a House measure that would extend federal funding for seven weeks, at the Capitol in Washington, Tuesday, Sept. 30, 2025. (AP Photo/J. Scott Applewhite)
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Overview

  • Senate Democrats blocked a House stopgap that would fund the government through Nov. 21 because it excluded an immediate extension of enhanced premium tax credits and a rollback of Medicaid cuts in President Donald Trump’s summer law.
  • Republican leaders say negotiations on subsidies should follow reopening the government, with Vice President JD Vance and Senate Majority Leader John Thune urging passage of a short-term funding bill first.
  • KFF estimates roughly 22 million subsidized marketplace consumers would see average out-of-pocket premiums jump about 114%—around $1,016—if the enhanced credits lapse, with total marketplace enrollment at a record 24 million.
  • Insurers are already proposing materially higher 2026 rates, with a median increase near 18%, and open enrollment begins Nov. 1, heightening urgency for clarity on subsidies.
  • The Congressional Budget Office projects that Republican Medicaid changes will increase the number of uninsured by millions over the next decade, and undocumented immigrants remain ineligible for ACA subsidies despite claims to the contrary.