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59m ago

U.S. Government Shuts Down Over Fight on ACA Subsidy Extension

Analysts warn premiums for subsidized marketplace enrollees could more than double in 2026 if Congress lets the enhanced credits lapse.

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

  • Negotiations collapsed after the Senate failed to advance H.R. 5371 on a 55–45 vote, triggering a shutdown when Democrats opposed a short-term funding bill without an ACA subsidy extension.
  • Democratic leaders demanded the enhanced premium tax credits be extended in the stopgap measure, while Republican leaders insisted subsidy talks occur separately and not in the immediate continuing resolution.
  • KFF estimates average annual out-of-pocket premiums for subsidized enrollees would jump from about $888 in 2025 to roughly $1,904 in 2026, affecting roughly 22–24 million people on the marketplaces.
  • Marketplace officials and policy experts say action is needed by Nov. 1, when open enrollment starts, to prevent sticker shock and potential coverage losses if consumers see higher quoted prices.
  • Budget estimates are central to the standoff, with CBO putting a permanent extension at about $358 billion over 10 years and CRFB estimating about $1.5 trillion for a broader Democratic counterproposal, as analyses also flag disproportionate increases in rural areas and some states.