Bipartisan House Lawmakers Propose Temporary Two-Year ACA Subsidy Extension with Income Cap and Fraud Safeguards

A bipartisan group of four House lawmakers—Reps. Don Bacon (R-Neb.), Tom Suozzi (D-N.Y.), Jeff Hurd (R-Colo.), and Josh Gottheimer (D-N.J.)—has proposed a compromise plan to temporarily extend the enhanced Affordable Care Act (ACA) subsidies, also known as premium tax credits. Their proposal includes a two-year extension with a built-in sunset clause and introduces an income cap phased out between $200,000 and $400,000 to target aid more effectively and curb fraud. The plan aims to break the current congressional deadlock amid a government shutdown and addresses concerns from Democrats who want to preserve the subsidies and Republicans who seek reforms and a reopening of the government first. This framework also includes measures to improve transparency and accountability, such as verifying eligibility and holding brokers accountable. While the proposal has not yet gained formal leadership support from either party, it reflects growing frustration among moderate members seeking to resolve the impasse and prevent millions from losing health insurance coverage or facing soaring premiums. The lawmakers hope their principles will inspire broader bipartisan cooperation to end the shutdown and address health care costs.