President Donald Trump is currently considering supporting an extension of the expiring insurance subsidies tied to the Affordable Care Act (ACA), also known as Obamacare, according to a senior White House official. This deliberation comes despite the President’s repeated denouncements of the ACA as a “disaster.”
The subsidies, which Congress previously extended in 2021 and 2022, are set to expire at the end of the year. Their expiration would cause a significant jump in premiums for millions of Americans who rely on them to pay for coverage, putting intense pressure on the Trump administration and Republicans to act.
Trump, who has not yet made a final decision, is under pressure to deliver a plan to address health care costs, especially since voters are already struggling with living costs. White House spokesman Kush Desai cautioned that reports about the administration’s position are “mere speculation” until President Trump makes an announcement himself.
“Somebody said I want to extend it for two years. I don’t want to extend it for two years. I’d rather not extend them at all,” Trump told reporters on Air Force One late on Tuesday.
“Some kind of an extension may be necessary to get something else done because the unaffordable care act has been a disaster. It’s a disaster,”added the president.
A poll from KFF taken right before the federal government shutdown began showed 78% of Americans said they want the ACA marketplace tax credits extended – including 59% of Republicans.
In considering an extension, which some initial reports suggested might be for two years, the White House official said Trump was weighing imposing tougher restrictions on who would be eligible.
Potential structural changes align with conservative demands and could include capping eligibility for wealthier Americans. Eligibility might be capped at roughly 700 percent of the federal poverty line for a family of four. Other potential requirements include demanding all enrollees pay a minimum premium or allowing enrollees to receive part of their tax credit in a tax-advantaged savings account if they downgrade to a lower-premium plan.
The costs associated with extending the subsidies are substantial. The Congressional Budget Office (CBO) estimated that making the extra subsidies permanent would add $350 billion to the federal deficit between 2026 and 2035. Even with modifications like eligibility caps, extending the subsidies could cost roughly $50 billion in the first two calendar years.
Deep Division on Capitol Hill.
Word of the President’s internal discussions has generated considerable pushback from both sides of a deeply divided Congress.
House Speaker Mike Johnson (R-LA) expressed strong opposition to a clean extension, calling the subsidies a “boondoggle” to insurance companies. Republicans are demanding structural “reforms” in exchange for extending the tax credits. Representative Thomas Massie (R-KY) questioned on social media whether extending Obamacare represented the Republican solution to health care.
Trump repeated on Tuesday that his preference was for funds to be given to Americans directly to spend on health care – rather than indirectly through the subsidies that go to insurance companies.
“Well, we’re looking at different alternatives. I mean, I like my plan the best,” Trump said.
”Don’t give any money to the insurance companies, give it to the people directly. Let ’em go out, buy their own healthcare plan. And we’re looking at that, if, if that can work. We’re looking at that. That’s sort of taken off. That’s what I like,” he said.
However, some Republicans, with constituents who could face a spike in premiums, have broken ranks with the opposition to extending the credits. Representative Marjorie Taylor Greene (R-GA) announced her support for extending the subsidies in October, noting that if the tax credits expire, her own adult children’s insurance premiums for 2026 would double.
Democrats, who pushed for continuing the subsidies during the 43-day government shutdown – the longest in U.S. history – are demanding action. Senate Majority Leader John Thune (R-SD) previously promised a floor vote on a Democrat-chosen ACA-related bill in December as part of the agreement to end the shutdown. Top House Democrats have stated that at this point, “anything short of a clean extension is unworkable”.
The deadline is rapidly approaching, with December 15 being the cutoff for Americans to enroll in a plan that begins coverage on January 1.
Meanwhile, the National Review reported that White House officials have privately asked prominent pro-life groups to keep silent during the ongoing debate over extending the subsidies.
This messaging guidance aims to give the administration “breathing room” to negotiate a bipartisan health care plan with Democrats, the conservative magazine reported.
One pro-life advocate was told that if a Trump-endorsed proposal fails to gain support, the White House prefers the failure to be blamed on Democratic opposition rather than on “conservative infighting over the Hyde Amendment”. The Hyde Amendment prohibits federal funds from being spent on abortion.
While some groups agreed to stay quiet to help the White House negotiate, believing the administration is trying to maintain Hyde protections, they cautioned that silence will not last if officials signal a willingness to weaken those protections.
Pro-life groups, including Susan B. Anthony Pro-Life America, insist that any subsidy extension must apply the Hyde policy, ensuring “no taxpayer dollars should fund abortion or plans that cover abortion.” These groups had previously warned that funding Obamacare without explicit limitations against elective abortion constitutes “forced taxpayer funding of abortion.”