Report: Trump to announce 2-year extension to ACA subsidies
While multiple media reports have said the White House is expected to make an announcement on healthcare policy soon, Politico may have more specifics. And no, it doesn’t involve the plan President Donald Trump floated, of cutting checks to Americans to subsidize the cost of insurance.
According to the outlet citing three anonymous sources, Trump’s Department of Health and Human Services will be unveiling a two-year extension to enhanced Affordable Care Act (ACA) subsidies, which expire at the end of the year. This will come with a new policy for enrollment eligibility and additional out-of-pocket costs.
Citing two people “with direct knowledge of the proposal,” Politico said the specifics mean there will be new income caps to qualify for the extended subsidies, plus higher monthly premiums.
Those with income at 700% above the federal poverty line of $15,650 for individuals—meaning anyone who makes roughly $109,550—would receive zero government help, with the cost of insurance premiums scaling up to that cutoff based on income.
Given the extreme rise in the price tag of medical coverage going into 2026—in some cases 50% higher than last year—it remains to be seen how much subsidies will help, and if the “expanded” subsidies will be similar to what was in place previously.
Price tags are set
The new layer of cost support for health plans sold on the ACA marketplace, distributed in the form of tax credits, was put in place during the COVID-19 pandemic. Their expiration caused the longest shutdown of the federal government in history, with Republicans refusing to allow for their renewal.
Now that they won the standoff, a massive rise in premiums remains, with millions of Americans expected to lose their insurance—something brokers have priced into premiums going into 2026.
Insurance costs for next year are locked in; open enrollment on government exchanges has begun. Whatever the White House plan is, it will have to address additional pricing challenges caused by the expiration of the tax credits.
Congress has also officially passed a funding extension devoid of additional money for healthcare. So, any White House plan would likely require an additional bill to pass through the House of Representatives and Senate in order to be enacted.
This is a developing story and no official announcement has been made.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.