Senate negotiations to restore expired Affordable Care Act tax credits have collapsed as a bipartisan working group missed deadlines and the chamber went into recess. Democrats back a three-year House-passed extension, but President Trump threatened a veto and many Republicans oppose reviving the subsidies. Talks over a two-year compromise with income limits and a $5 monthly minimum stalled over disputes about shifting funds to HSAs and stricter Hyde abortion language. With open enrollment closed, millions now face higher premiums for 2026.
Senate Bipartisan Talks Collapse as ACA Premiums Rise for 2026
Senators left town Thursday for a one-week recess. (Al Drago / Bloomberg / Getty Images)(Al Drago)
WASHINGTON — Efforts in the Senate to reach a bipartisan agreement to revive expired Affordable Care Act (ACA) tax credits have collapsed, leaving millions of Americans facing higher insurance premiums for 2026 as open enrollment closes.
What Happened
Negotiations among a small group of GOP and moderate Democratic senators failed to produce a deal before the Senate recessed for a one-week break. Democrats remain united behind a three-year extension of enhanced ACA tax credits — a bill that recently passed the House with 230 votes, including support from 17 Republicans — but the measure faces a threatened veto from President Donald Trump, who called the subsidies a "flagrant scam" in a competing health-care blueprint.
Where Talks Broke Down
Lawmakers had discussed a compromise framework reportedly centered on a two-year extension with income limits and a $5-per-month minimum contribution. Major sticking points included:
- President Trump’s proposal to reallocate some funds from the ACA toward health savings accounts (HSAs).
- Republican demands for stronger "Hyde amendment" language tying abortion-related restrictions to any extension.
"Would you encourage your conference to negotiate with Republicans to pass a two-year extension with the reforms that have been outlined? ... Right now, it seems like no. So why would we waste time and effort?" — Sen. Bernie Moreno (R-Ohio)
Political Reactions
Senate Minority Leader Chuck Schumer (D-N.Y.) pushed back on claims that Democrats were blocking compromise and urged Senate Republicans to support the House-passed three-year bill. Schumer said negotiations had been ongoing since the summer and blamed Republican disarray for the expiration of the credits.
Senate Majority Leader John Thune (R-S.D.), who opposed the House bill, criticized the expanded subsidies as vulnerable to waste and fraud and noted they were initially increased as part of a COVID-era relief package under President Joe Biden.
What This Means
With open enrollment now closed, insurers will begin implementing 2026 premiums without renewed subsidies, raising costs for many consumers. Without an agreement to restore the expired tax credits, affected Americans will likely face higher out-of-pocket premiums and reduced affordability of Marketplace plans.
Next steps: Lawmakers could revive negotiations when the Senate returns from recess, but the combination of partisan resistance, policy disputes and a threatened presidential veto makes a near-term solution uncertain.
This article is based on reporting from NBC News.
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