Are Democrats Eager to Reinstate Obamacare Tax Credits?
TL/DR –
Congressman Mike Lawler criticized the leadership of both parties for their lack of interest in solving the expiration of the Obamacare tax credits which resulted in premium increases for millions of Americans. Lawler, along with some of his colleagues, tried to negotiate an extension of the ACA premium tax credits with reforms, presenting several plans and compromises, however, these were not supported by the leadership. The enhanced subsidies for Affordable Care Act (ACA) marketplace health insurance plans expired on December 31, 2025, leading to significantly higher out-of-pocket premiums for millions of marketplace enrollees in 2026.
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Both Parties Criticized by Mike Lawler for Not Resolving ACA Tax Credits Issue
In a bold move, Westchester Congressman Mike Lawler, a known Republican, took the opportunity on December 16 to chastise the leadership of both Republican and Democratic parties. He voiced his disapproval of their collective disinterest in addressing the expiration of the Affordable Care Act (ACA), or Obamacare, tax credits. This indifference, Lawler pointed out, resulted in huge premium increases for millions of Americans who depend on ACA.
Lawler Urges Leaders to Address ACA Problems
Lawler pointed out that the Democrats had shut down the government for 43 days, claiming that it was over the ACA premium tax credits issue. Despite this, when he confronted Leader Jeffries to sign on for a one-year extension, he was turned down. Lawler, along with other Republicans and Democrats, attempted to negotiate an extension of these tax credits while introducing reforms, acknowledging that the current system was not reducing health care costs in America. He highlighted that health care premiums have risen by 96% since the introduction of Obamacare.
Understanding the negative impact of the expiration of premium tax credits on the American public, the politicians managed to devise several plans, which also aimed to eliminate fraud and hold insurance companies accountable. They introduced these bills in two separate discharge petitions. However, House Republican leadership would not call for a vote, forcing Lawler and others to sign the discharge petitions.
Lawler Calls for Cooperation Amongst Parties
Lawler expressed disappointment at his Democratic colleagues who did not join them in signing these petitions. He criticized them for wanting to maintain the issue for political gain rather than solving the problem. This, he argued, was why Senator Schumer introduced a doomed three-year clean extension on the Senate floor that lacked bipartisan compromise.
Expressing frustration, Lawler called for sincere efforts to solve the problem, urging his colleagues to put aside party politics and sign the discharge. He reminded them of their responsibility to their constituents and the need to avoid healthcare premiums from skyrocketing.
Background of ACA Tax Credits
The enhanced subsidies (also known as enhanced premium tax credits) for ACA marketplace health insurance plans expired on December 31, 2025. First introduced in the 2021 American Rescue Plan Act and extended through 2025 by the 2022 Inflation Reduction Act, these temporary enhancements were designed to make subsidies more generous by capping premiums at a lower percentage of income. However, Congress did not extend them further, leading to their lapse at the end of 2025 and affecting coverage starting in 2026.
Though the original ACA premium tax credits remain available in 2026 for eligible enrollees (those with incomes 100-400% of the federal poverty level), they are less generous than their enhanced counter-parts. This has resulted in significantly higher out-of-pocket premiums for millions of marketplace enrollees in 2026.
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