This browser does not support the Video element.
Affordable Care Act subsidies expire on New Year's Day as premiums surge
As the clock struck midnight on New Year's, tax breaks that helped many Americans afford health care under the Affordable Care Act expired, sparking concerns about rising costs. FOX 5 DC's Tom Fitzgerald has the latest.
The Enhanced tax credits that have helped millions of Americans offset the cost of the Affordable Care Act health insurance for the last four years expired as 2025 came to a close.
Dig deeper:
Now, the more than 20 million subsidized enrollees in the Affordable Care Act program are seeing their premium costs rise. An analysis by health care research nonprofit Kaiser Family Foundation (KFF) shows premiums will rise by 114% in 2026.
The backstory:
Democrats forced a 43-day government shutdown over the issue. Moderate Republicans called for a solution to save their 2026 political aspirations. President Donald Trump floated a way out, only to back off after conservative backlash.
In the end, no one’s efforts were enough to save the subsidies before their expiration date. A House vote expected in January could offer another chance, but success is far from guaranteed.
What's next:
There are two plans with traction in the House. The GOP’s plan advanced on the floor last month but doesn’t address the issue of the expiring tax credits. Then there is a bipartisan plan that calls for a three-year extension of the subsidies, similar to Senate Democrats’ plan, that is teed up for a vote.
The latter option, and its bipartisan momentum, has some Democrats hopeful that a three-year extension could get a shot in the upper chamber.
The Source: Information in this article was sourced from FOX News, The Associated Press, and previous FOX Television Stations reporting. This story was reported from Orlando.