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Texas Republicans Largely oppose Extending ACA Subsidies as Enrollment deadline Looms
WASHINGTON – A growing impasse between Republicans in Congress and the Biden governance over the future of enhanced Affordable Care Act (ACA) tax credits is threatening to drive up health insurance premiums for millions of Americans, with Texas Republicans largely aligned against extending the subsidies. As the November 1st open enrollment period approaches, the lack of a deal is creating uncertainty for insurers and potentially discouraging enrollment, according to Democrats.
The enhanced tax credits, initially expanded under the 2021 American Rescue Plan to lower ACA premiums during the COVID-19 pandemic, are set to expire at the end of the year. While some Republicans in swing districts are exploring a one-year extension, Texas Republicans are overwhelmingly opposed, arguing the credits are a flawed and costly intervention in a broken healthcare system.
Representative J.D.Pfluger wants the subsidies to revert to pre-2021 eligibility and cost rules. Representative Jodey Arrington characterized reforms to the existing tax credits as akin to “putting makeup on a dog.” He added, “I don’t see how you can make this or sell this, fix it or clean it up, in a way that doesn’t add to an already bad Obamacare program and a broken health care system.”
prominent conservative figures like Representative Chip Roy have explicitly stated their opposition to any extension, calling the idea of continuing “COVID subsidies to enrich insurance companies…too stupid for words.”
The debate is further complicated by timing. Insurers submitted proposed 2026 rates in August, and while they could refile if a deal is reached, making changes becomes increasingly difficult as open enrollment nears. Democrats warn that even a last-minute agreement may be too late, as many potential enrollees may have already received initial notices of premium increases assuming the credits will expire.
“What we have happening right now is skyrocketing health care costs that we can prevent if we extend the tax credits,” said Representative Veronica Escobar, D-El paso. “We’ve not made this a secret to Republicans. We’ve been telling them we need to fix this.”
