GOP Backs ACA Subsidy Extension Ahead of 2026 Elections
Republicans Push to Extend ACA Subsidies Before 2026 Midterms
With enhanced Affordable Care Act (ACA) premium subsidies set to expire at the end of 2025, a group of House Republicans has introduced legislation to extend the benefits through 2026. The move aims to prevent a sharp rise in health insurance costs and potential coverage losses heading into a high-stakes midterm election year.
The “Bipartisan Premium Tax Credit Extension Act,” introduced in late August by ten Republican lawmakers, would preserve the expanded ACA tax credits first enacted under the American Rescue Plan and extended in the Inflation Reduction Act. These subsidies have made marketplace coverage more affordable for millions—including many middle-income Americans who were previously ineligible for financial assistance.
If the credits lapse, premiums are expected to rise by an average of 18% in 2026, according to budget analysts. The Congressional Budget Office projects that 4 million people could lose coverage immediately, with enrollment in the ACA marketplace potentially falling from 22.8 million in 2025 to just 15.4 million by 2030.
Insurers are already bracing for this possibility. Many have requested double-digit premium hikes for 2026, citing the end of the subsidies and rising medical costs. For example, Illinois marketplace plans could increase by nearly 29% next year if the credits aren’t renewed, according to filings reported by My Journal Courier.
Public support for extending the credits is strong and bipartisan. A KFF Health Tracking Poll from June 2025 found that 77% of Americans—including 63% of Republicans and 56% of MAGA-aligned voters—favor keeping the enhanced subsidies in place. A separate survey by Impact Research showed nearly 80% support among swing voters and Trump supporters.
Despite that support, GOP leadership has not fully embraced the effort. House Speaker Mike Johnson and Senate Whip John Thune have not endorsed the extension, and some conservative groups oppose the subsidies over cost concerns or ideological objections to the ACA itself. The CBO estimates that a permanent extension would cost $355 billion over 10 years.
Democratic leaders, meanwhile, are sounding the alarm. Senate Majority Leader Chuck Schumer and top Democrats like Ron Wyden and Bernie Sanders recently urged insurers to notify consumers about the potential expiration of the subsidies—hoping to mobilize voter awareness and political pressure ahead of the election.
For now, the proposed GOP bill offers only a one-year extension—essentially punting the long-term debate until after the 2026 elections. Still, the legislation marks a shift: some Republicans, particularly those in competitive districts, are acknowledging that letting these subsidies expire could carry both human and political costs.
Whether Congress can come to agreement before open enrollment for 2026 begins may determine not just the price of coverage—but also the size and stability of the ACA itself moving forward.
For more info check out the articles from Politico and Becker’s Payers.