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Senate Sets Vote on ACA Subsidy Extension as GOP Divisions Leave No Clear Plan

With enhanced tax credits expiring Dec. 31, projections show sharp premium hikes and coverage losses unless Congress strikes even a short-term deal.

Overview

  • The Senate will vote Thursday on Democrats’ clean three-year extension of enhanced Affordable Care Act tax credits, a measure expected to fall short of the 60 votes needed in the GOP-led chamber.
  • Republicans have not coalesced around an alternative, and President Trump has endorsed directing funds into health savings accounts without offering detailed operational guidance.
  • House Speaker Mike Johnson says he will bring a health care proposal to the floor by year’s end but has not specified which plan, as a bipartisan group pushes “CommonGround 2025” for a one-year extension with income caps and anti-fraud provisions and seeks votes by Dec. 18.
  • Swing-district Republicans are urging short-term extensions to avoid voter backlash, while conservative demands including new abortion restrictions have further complicated negotiations.
  • KFF estimates average annual premiums would rise 114% from $888 in 2025 to $1,904 in 2026 if the enhancements lapse, CBO projects millions more uninsured over time, and academic researchers warn HSA-based or high-deductible alternatives could worsen health outcomes.