White House Proposes Two Year Extension of ACA Premium Subsidies

The White House circulated a draft proposal on Monday that would extend Affordable Care Act premium tax credit subsidies for two years as the administration and congressional Republicans sought a policy solution before pandemic era enhanced credits expired at the end of the year. The document, described to The Associated Press by people familiar with the draft, would broaden eligibility, tighten rules on low cost plans and codify anti fraud measures that have been a Republican priority.

Under the plan, eligibility for premium tax credits would be capped at 700 percent of the federal poverty level, up from the 400 percent cap in the original law. The draft would also require every enrollee to pay a minimum premium, with one option under consideration equal to 2 percent of income or at least five dollars per month. That provision would eliminate some zero premium plans for low income consumers, a practice Republicans have criticized as enabling fraud.

The draft included several other changes intended to shore up the program and win bipartisan support. It would codify anti fraud measures that the administration says are necessary to protect taxpayer dollars and would allow limited contributions to health savings accounts for enrollees in lower tier exchange plans. White House officials emphasized the proposal was not final until President Trump formally announced it, and said the draft was being circulated to solicit feedback from lawmakers.

President Trump has pledged a health care fix, and administration officials have been working with Republican Senate leaders to craft legislation that could attract at least some Democratic support. Senators from both parties told reporters that elements of the White House proposal could be a starting point for negotiation, even as Democrats pushed for a straight extension of the enhanced credits during recent budget fights that nearly shut down the government.

The pandemic era enhancements, enacted earlier in the Biden administration, sharply increased premium subsidies for many middle income and lower income households and reduced or eliminated monthly premiums for people receiving coverage through the federal marketplace. Those enhanced credits are set to expire at year end unless Congress or the administration acts, potentially leaving millions facing higher premiums in 2026.

Policy analysts said the White House draft reflects an attempt to strike a balance between extending assistance and responding to Republican concerns about program integrity and long term cost. Critics warned that requiring a minimum premium could reintroduce affordability barriers for some enrollees and might reduce enrollment gains achieved since the pandemic began.

With lawmakers returning to Washington for a busy end of year agenda, the coming weeks will test whether a compromise can be reached that preserves broad access while addressing GOP priorities. The White House circulated the draft on November 24, 2025, and the Associated Press provided the initial report on the proposal.