Trump Backs GOP Plan to Let Obamacare Subsidies Lapse as Republicans Split on Next Steps
Republican leaders on Capitol Hill are pushing to let enhanced subsidies under the Affordable Care Act expire at the end of 2025, even as concerns mount inside the party about the political and human impact of such a move. According to Politico, the shift follows open support from President Donald Trump, who argued that federal funds should go “to the people, not to the insurance companies.”
The subsidies, created during the pandemic to lower premiums for millions currently help more than 20 million Americans pay for marketplace insurance. Senate Republicans, led by Senators Bill Cassidy and Mike Crapo, are championing a replacement plan that would deliver roughly $1,000–$1,500 per enrollee per year via Health Savings Accounts (HSAs), rather than continuing premium tax credits.
Proponents say the HSA model could reduce government spending and shift control to individuals. Critics, including some within the GOP, warn the change risks steep insurance premium hikes and widespread loss of coverage. A projection from the nonpartisan Congressional Budget Office estimates that lapse of the credits could leave millions without insurance.
A growing number of House Republicans, especially those representing swing or moderate districts, are pushing back. They warn that letting the subsidies expire would impose serious financial burdens on constituents and could damage GOP political prospects in 2026.
For now, no final vote has been scheduled. Lawmakers are reportedly scrambling to craft a competitor health-care plan, with some still considering a temporary extension of the subsidies — possibly capped by income — but time is running out. If Congress fails to act by Dec. 31, millions could face premium spikes, benefit loss, or dropping coverage altogether.
What happens next: A vote in the Senate is expected this week. If the Cassidy-Crapo plan fails or is blocked, pressure will intensify on the House to consider a short-term extension — but for many Americans, any gap could come with serious consequences.
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