Overview
- After details leaked, the White House paused a draft plan that paired a two-year extension of enhanced ACA tax credits with guardrails including a 700% of poverty income cap, a minimum monthly premium, and incentives tied to health savings accounts.
- House Republicans reacted sharply to the leaked framework, and Speaker Mike Johnson privately told the president the House lacked votes for the approach, contributing to the delay.
- President Trump told reporters he would rather not extend the expiring tax credits at all, while leaving open that some extension could be part of a broader deal and reiterating his preference to send funds directly to individuals.
- Senate leaders previously committed to hold a vote by mid-December as part of the shutdown-ending agreement, but prospects remain uncertain given GOP divisions and Democratic opposition to added restrictions such as new abortion language.
- KFF and other analyses warn that if the enhanced credits lapse on Jan. 1, premiums for subsidized enrollees could more than double and coverage losses could mount as open enrollment continues.