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White House Delays Draft ACA Subsidy Extension After GOP Backlash

Republican divisions leave consumers near a Jan. 1 premium cliff.

Overview

  • The White House circulated a draft two-year extension of enhanced Affordable Care Act tax credits that adds conservative guardrails, including a new income cap around 700% of the federal poverty level and required minimum monthly premium payments.
  • The proposed framework also explores allowing some enrollees to route aid into health-savings–style accounts and other conservative priorities, though officials stress nothing is final until President Trump announces a plan.
  • Plans for a rollout were postponed after quick resistance from House Republicans, with Speaker Mike Johnson signaling broad opposition and several conservatives publicly rejecting any extension.
  • Democratic leaders continue to push for a clean renewal, while a few moderates signaled openness to negotiations; some Republicans such as Sen. Thom Tillis and Rep. Mike Flood have indicated support for a time-limited extension with reforms.
  • Roughly 22 million people benefit from the enhanced credits, and independent analyses warn premiums could more than double for many if they expire, with a promised mid-December Senate vote now the next key moment.