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Senate rejects bills to extend healthcare subsidies
Millions of Americans face soaring insurance premiums after the U.S. Senate failed to advance competing proposals to extend Affordable Care Act (ACA) subsidies, setting up a political showdown ahead of the 2026 midterm elections.
Subsidies set to expire at year's end
Additional tax credits, introduced by Democrats in 2021 during the COVID-19 pandemic, are scheduled to lapse on January 1. Without action, premiums for ACA plans could more than double, affecting over 24 million enrollees.
On Thursday, the Senate voted down two measures: a Democratic plan to extend the subsidies for three years and a Republican alternative to establish health savings accounts for low- and middle-income earners. Both fell short of the 60 votes needed to proceed, with identical 51-48 tallies.
Partisan divide deepens
Senate Minority Leader Chuck Schumer (D-N.Y.) framed the vote as a final opportunity to prevent a crisis, urging Republicans to act before the deadline. "Let's avert a disaster," he said. "The American people are watching."
Republicans, however, have long criticized the ACA as costly and ineffective. Senate Majority Leader John Thune (R-S.D.) dismissed the Democratic proposal as a "disguise" for Obamacare's "spiraling healthcare costs."
"We want to give money to the people, not to the insurance companies."
Former President Donald Trump, in a Politico interview
Public support vs. political gridlock
A November survey by KFF found 74% of Americans back extending the enhanced ACA credits, reflecting widespread concern over rising living costs. Yet bipartisan negotiations have stalled, with no high-level talks reported.
White House Press Secretary Karoline Leavitt blamed Democrats for the impasse, arguing the COVID-era subsidies "completely distorted the health insurance market." She said Republicans were developing "creative solutions" but offered no specifics.
Election-year stakes
The subsidy debate has exposed fractures within the GOP. Four Republican senators-Susan Collins (Maine), Josh Hawley (Mo.), Dan Sullivan (Alaska), and Lisa Murkowski (Alaska)-broke ranks to support the Democratic bill.
Some Republicans warn inaction could backfire in November. "If we fumble this healthcare bill, nothing else is going to matter," Rep. John Rutherford (R-Fla.) told Politico, highlighting the issue's potential to sway voters.
Earlier this year, a dispute over the same subsidies triggered the longest U.S. government shutdown in history, lasting 43 days.
