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White House Proposes 2-Year ACA Subsidy Extension with New Eligibility Limits

The White House plans to propose a two-year extension of ACA premium tax credits while adding new eligibility limits, according to anonymous sources. The proposal would cap subsidies at 700% of the federal poverty level, require minimum premium payments, and request funding for cost-sharing reductions. It also offers an option to direct part of the credit into a tax-advantaged savings account when enrollees choose lower-premium plans. Lawmakers remain divided and negotiations ahead are uncertain.

09:29 AM, 11/24/2025Politics
White House Proposes 2-Year ACA Subsidy Extension with New Eligibility Limits

The White House is preparing a health policy framework that would extend Affordable Care Act (ACA) premium tax credits for two years while tightening eligibility and requiring minimum premium contributions, according to multiple people familiar with the proposal who spoke on condition of anonymity.

Key elements of the proposal

Two-year extension: The plan would continue premium tax credits for two years to blunt sharp increases in insurance costs if Congress allows the subsidies to lapse next month.

Income cap: Subsidies would be limited to people with incomes up to 700% of the federal poverty level (FPL), a ceiling reportedly similar to discussions among a bipartisan group of senators.

Minimum premium requirement: Enrollees would be required to make a minimum premium payment, addressing conservative concerns that some people enroll in plans and pay little or nothing while remaining unaware of their coverage.

Cost-sharing reductions: The administration would ask Congress to appropriate funds for cost-sharing reductions to keep out-of-pocket costs lower for ACA enrollees.

Tax-advantaged savings option: The proposal would offer enrollees the option to receive part of their tax credit in a tax-advantaged savings account if they switch to a lower-premium plan, an approach the president has publicly supported and many Republicans favor for delivering funds directly to individuals.

Political context and reactions

Republicans on Capitol Hill remain divided. Hard-line conservatives favor letting the subsidies expire, moderates urge an extension, and some GOP lawmakers are pushing for a broader overhaul to replace the credits. As part of a recent agreement to reopen the government, Senate Republicans committed to giving Democrats a December vote on whether to continue ACA tax credits, but leaders have not yet agreed on what compromise to accept.

Democrats say they want to negotiate any extension, and it is unclear whether they would accept a short-term deal with eligibility limits and other conditions attached. It is also uncertain how House GOP leaders will respond after briefing members on their alternative proposal, which critics have labeled the "Unaffordable Care Act."

The White House declined to confirm the details, saying any official position will be announced by the president.

Jordain Carney contributed to this report.

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