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Trump Proposes Redirecting ACA Subsidies to Individuals, Pressuring Shutdown Talks

Lacking legislative details, the idea draws warnings about destabilizing insurance markets.

Overview

  • President Trump urged Senate Republicans to stop paying ACA subsidies to insurers and instead send the funds directly to Americans to buy coverage.
  • Democrats promote a one-year extension of enhanced ACA tax credits as part of reopening the government, while GOP leaders reject extending the subsidies.
  • Sen. Bill Cassidy endorsed the concept and described a vision for pre-funded health savings accounts, though no bill text or operational plan has surfaced.
  • Economists and Democratic lawmakers criticized the proposal as likely to weaken risk pools, raise premiums, and increase the number of uninsured.
  • Trump paired the push with renewed calls to end the Senate filibuster, further complicating high-stakes negotiations over funding and health policy.