House passes three-year ACA subsidy extension, easing costs for New Mexicans

The U.S. House of Representatives passed a measure on Thursday to renew and extend Affordable Care Act marketplace tax credits for three years, a development local leaders say could protect thousands of New Mexicans from sudden health care cost increases. The bill advanced on a 230-196 vote, with 17 Republicans joining House Democrats to send it to the Senate.

Rep. Melanie Stansbury, who represents New Mexico’s 1st Congressional District, called the passage “a huge deal.” She stressed the subsidies’ role in enabling broader access to care: “These subsidies help to massively expand the number of uninsured individuals to actually have access to health care.” Stansbury noted the bill will likely change in the Senate but argued it “does create a new political pathway and pressure in the Senate and with the White House, especially with Republican support, to get some sort of extension, hopefully, in the coming weeks.” She also praised the state’s actions during a special legislative session as “very proactive.”

The subsidies, created by Congress in 2021, expired at the end of 2025. Their lapse was a central factor in the federal government shutdown late last year and has driven sticker shock for people shopping in state marketplaces this month. Across the country, many consumers faced higher copays, deductibles, and premiums; some states saw enrollment declines as a result.

New Mexico has moved to soften the blow. In a special October session, state lawmakers and Gov. Michelle Lujan Grisham approved $17.3 million to cover the federal portion of tax credits for roughly 6,000 New Mexicans whose incomes exceed 400 percent of the federal poverty level. That emergency action helped produce a third straight week of enrollment growth in the state earlier this week, and state officials estimate about 27,000 New Mexicans still rely on state assistance to remain covered if federal aid is not extended.

For San Juan County residents, the stakes are practical and immediate. People who buy coverage on the ACA marketplace could otherwise face abrupt increases in monthly premiums or out-of-pocket costs, particularly if they earn too much to qualify for Medicaid but still struggle with premiums. Local health clinics, county social services, and insurance navigators have been scrambling to advise affected households and to enroll eligible residents before plan deadlines.

The House vote followed earlier bipartisan defections: just before the holiday recess four House Republicans broke with leadership to force a vote, and in the new session nine Republicans joined Democrats on the procedural step to take up the measure. The bill now moves to the Senate, where similar measures stalled in December.

The takeaway? Keep an eye on your plan and open enrollment notices, and check your eligibility now. If you buy coverage on the marketplace, contact your insurer or local assistance programs to confirm whether state help applies and to avoid gaps in coverage. Our two cents? Don’t wait until a bill becomes law to review your options—reach out early and double-check enrollment so you’re not surprised by the next bill or deadline.