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Competing Plans on Subsidies Tie Up Congress

Democrats are united on extending ACA aid, but Republicans have no consensus
Posted Dec 6, 2025 4:43 PM CST
Divisions Entangle GOP on Subsidies
Senate Majority Leader John Thune, R-S.D., center, is joined by from left: Sen. Tom Cotton, R-Ark., Sen. John Barrasso, R-Wyo., Sen. James Lankford, R-Okla., and Sen. Shelley Moore Capito, R-W.Va., during the Senate Republican policy luncheon news conference at the Capitol on Tuesday.   (AP Photo/Rod Lamkey, Jr.)

With enhanced Affordable Care Act subsidies expiring soon, members of Congress—especially Republicans—are split on what to do. GOP leaders in the House and Senate are considering holding votes next week on the party's health care priorities, Axios reports, though there's no consensus yet on what the priorities are. Democrats are united in seeking a three-year extension of the subsidies, while Republicans have competing counterproposals. "Some of our folks who are working on this issue are trying to come up with something that unites Senate Republicans," Majority Leader John Thune told Politico. He said the White House is being consulted.

Sen. Bill Cassidy, who chairs the health policy committee, wants to shift the subsidies into health savings accounts and nudge people toward high-deductible plans. Sen. Rick Scott is pushing for what he calls "Trump Health Freedom Accounts," which could be tapped to cover premiums. Sen. Josh Hawley wants to let Americans deduct up to $25,000 in medical expenses at tax time. Another idea with support in both parties, though not from the leaders, would keep the subsidies in place for most people for one year and add anti-fraud measures. "I have 40,000 people in my district who rely on this health care and doing nothing to prevent a spike in their premiums is wrong," said GOP Rep. Jen Kiggans.

If Congress does nothing, the enhanced subsidies will expire on Dec. 31 and revert to their original, lower levels, meaning higher costs for millions of people. Low-income people who currently pay nothing would have to start paying, and those with higher incomes would see big increases. Speaker Mike Johnson said he wants to present a GOP health care plan early next week, though there's been no evidence of one, per Axios. A significant number of Republicans in both houses are against any version of extended subsidies, and only 10 session days remain.

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