Shutdown Deadlock Threatens ACA Subsidies Before Enrollment

The federal government has been at a standstill for more than a week amid a deadlock over whether to extend COVID-era enhanced Affordable Care Act premium tax credits that expire at year-end, raising the prospect of steep premium spikes ahead of open enrollment. Democrats are demanding a permanent extension and rejected a one-year proposal backed by Rep. Jen Kiggans, with House Minority Leader Hakeem Jeffries calling short-term fixes “laughable” while saying he remains open to negotiation if GOP leaders engage. Many Republicans, including Sen. John Thune, oppose extending the credits without reforms, leaving GOP moderates divided and prompting partisan blame-trading. The impasse is already affecting people and markets: millions of federal workers are working without pay, insurers and state marketplaces are notifying enrollees of large rate increases, and KFF analysis shows average out-of-pocket premium payments could roughly double if the enhanced credits lapse. With open enrollment beginning Nov. 1 in most states, advocates warn the lack of a deal could cause broad disruption to 2026 coverage and costs.