President Donald Trump said on Tuesday that he does not want to extend Obamacare subsidies, even as the White House explores short-term options to prevent steep health insurance premium hikes when current aid expires at year’s end.
Trump Rejects Two-Year ACA Subsidy Extension Plan
According to Reuters, speaking to reporters on Air Force One en route to Florida for the Thanksgiving holiday, Trump rejected reports that he backed a two-year renewal of expanded Affordable Care Act premium subsidies.
“I don’t want to extend them for two years. I’d rather not extend them at all,” he said. But he added, “Some kind of extension may be necessary to get something else done,” without offering details.
His remarks followed a Politico report on Monday that stated Trump’s aides had circulated a draft health policy framework to extend the subsidies for two years with tighter income limits and other changes.
White House spokeswoman Karoline Leavitt earlier on Tuesday insisted Trump was not considering “a straight two-year subsidy extension,” saying he is consulting advisers, lawmakers and industry experts on alternatives.
Experts Warn Of Looming ‘Subsidy Cliff’ For Enrollees
The enhanced ACA tax credits, expanded in 2021 and extended through 2025, are set to expire Dec. 31. Analysts at KFF estimate that if Congress lets them lapse, average annual premium payments for subsidized marketplace enrollees would more than double in 2026, rising from about $888 to roughly $1,900.
A Bipartisan Policy Center brief warns that millions could face a “subsidy cliff,” with some losing all tax-credit help and others dropping coverage entirely.
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Shutdown Fight Highlights Stakes Over Health Costs
The subsidies fight was Democrats’ central demand during the 43-day government shutdown that ended earlier this month, the longest in U.S. history. Republicans ultimately moved a funding bill without an extension, arguing ACA aid should be debated separately, while Democrats cast the standoff as a battle over health costs and broader affordability.
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