Trump delays 2-year ACA subsidy extension proposal: Report
By Jakob Emerson / November 24, 2025
President Donald Trump has postponed a planned announcement of a proposal to extend enhanced ACA subsidies, CNN reported Nov. 24.
Trump was expected to unveil a proposal as early as Nov. 24 that would extend the subsidies for two years while introducing new eligibility restrictions, according to earlier reports from Politico and MS Now.
The proposal, dubbed the “Healthcare Price Cuts Act,” would also establish an income cap limiting subsidies to individuals earning up to 700% of the federal poverty line, three people familiar with the plan told Politico. All enrollees would be required to make minimum premium payments, two White House officials told MS Now.
The plan also includes a health savings account component. Enrollees who switch to lower-premium marketplace plans could direct the difference in premium costs into tax-advantaged savings accounts funded with their subsidy dollars, according to both reports.
Additionally, the White House intends to ask Congress to appropriate funding for cost-sharing reductions, which lower out-of-pocket expenses for ACA enrollees, Politico reported.
Current enhanced ACA subsidies are set to expire Dec. 31, with millions of Americans facing major premium increases when open enrollment concludes in January.
The reported new policy proposal represents an evolution in the administration’s approach to ACA subsidies. In early November, President Trump proposed terminating payments to “money sucking” insurers and instead giving the funds to individuals to purchase their own coverage.
That proposal came shortly after the end of the longest-ever government shutdown, where the enhanced subsidies were among the key sticking points in budget negotiations. The Senate advanced a spending package Nov. 10 that could allow a December vote on subsidy extension legislation.
Enhanced subsidies expanded marketplace eligibility to households with income over 400% of the federal poverty limit and capped premiums at 8.5% of income. Since their introduction, ACA enrollment has more than doubled from 11.4 million in 2020 to 24.3 million in 2025. More than 75% of adults support keeping the tax credits, according to recent polling.