Senate Rejection of ACA Tax Credit Proposals to Hike Premiums by 2026

On December 11, 2025, the U.S. Senate rejected both Democratic and Republican proposals to extend Affordable Care Act (ACA) tax credits, setting the stage for significant increases in health insurance premiums for millions of Americans starting January 1, 2026.

The Democratic proposal aimed to extend the enhanced subsidies for three years, while the Republican alternative sought to replace them with health savings accounts. Both measures failed to secure the necessary 60 votes for passage.

The expiration of these subsidies, initially introduced during the COVID-19 pandemic, is expected to lead to a substantial rise in health insurance premiums. Analyses indicate that without the subsidies, premiums could more than double for many enrollees, potentially causing millions to lose coverage.

This legislative impasse follows a 43-day government shutdown earlier in the year, which was partly driven by disputes over the extension of these health care subsidies.

The House of Representatives is now under pressure to address the issue, with Speaker Mike Johnson indicating plans to vote on a health care-related bill, though no consensus has yet emerged.

Public opinion largely favors continuing the subsidies, with a Reuters/Ipsos poll showing 51% of Americans—including a third of Republicans—supportive of their extension.

The looming expiration of these subsidies has significant implications for the U.S. health care system, potentially affecting millions of Americans' access to affordable health insurance.