Congress Seeks ACA Tax Credit Deal Amid Government Shutdown Threatening 24M Enrollees

The ongoing government shutdown, beginning October 1, 2023, has intensified partisan disputes over the extension of Affordable Care Act (ACA) tax credits, crucial for millions of Americans purchasing health insurance through ACA marketplaces. Republican leaders, including House Speaker Mike Johnson and President Trump, argue there is sufficient time to negotiate the extension by the end of the year, despite looming open enrollment starting November 1, which could expose up to 22 million Americans to significant premium increases. Democratic lawmakers and insurance officials, such as Jon Godfread, president of the National Association of Insurance Commissioners, emphasize the urgency of extending these subsidies promptly to prevent premiums from potentially doubling or even tripling, which would drive many consumers out of the market. Data shows that a large majority of ACA enrollees live in states that supported Trump in 2024 and favor extending tax credits, with bipartisan support among voters and state insurance leaders warning of severe financial impacts if subsidies lapse. The stalemate has stalled government funding bills and left uncertainty about whether a resolution will be reached before open enrollment begins, threatening the stability of the ACA marketplaces and affordability for millions. Both sides remain at an impasse, with Republicans refusing to negotiate on the issue during the shutdown and Democrats demanding immediate action to avoid premium shock and coverage losses.