House extends Obamacare subsidies, as Senate floats compromise bill

The US House of Representatives has passed a bill extending Obamacare subsidies for three years, putting pressure on Senate Republicans to reconsider the legislation. The bill, which received bipartisan support with more than a dozen Republicans joining Democrats, aims to provide tax credits under the Affordable Care Act.

The tax credits expired on December 31, 2025, leading to higher health care premiums for an estimated 22 million Americans. The House Minority Leader, Hakeem Jeffries, secured the necessary signatures for a discharge petition to force a vote on the bill.

While the House measure is unlikely to be considered in the Senate, a bipartisan group of lawmakers is working on an alternative bill that would extend the Obamacare credits for two years. The bill also includes cost-reducing provisions to address the concerns raised by Republicans.

Representative Tom Suozzi highlighted the impact of not extending the subsidies, stating that his constituents would have to pay around 8% of their income towards premiums. He emphasized the need for a bipartisan solution to address the issue.

The bill proposed by Jeffries would increase the federal budget deficit by over $80.5 billion over the next decade, according to the Congressional Budget Office. However, Senate Republicans have expressed reservations about a straight-up extension of the credits and are looking for reforms in the legislation.

Senator Bernie Moreno is leading a working group to revise the ACA extension bill, aiming to rally around a two-year extension with income caps and other provisions. Discussions have also focused on including measures to prevent taxpayer funding for abortions, a contentious issue among lawmakers.

President Trump has supported extending the health care subsidies but suggested flexibility on the Hyde Amendment, drawing criticism from conservative members. The Senate is expected to negotiate a bipartisan compromise that aligns with the provisions put forward by bipartisan groups like the Problem Solvers Caucus.

Overall, the push to extend Obamacare subsidies reflects the ongoing debate in Congress over healthcare reform and the need to find a solution that addresses the concerns of both parties. As lawmakers continue to work towards a compromise, the focus remains on providing affordable and accessible healthcare to all Americans.