Senate Rejects Bills to Extend ACA Subsidies from Both Parties

February 9, 2026
Hall Benefits Law, LLC

The U.S. Senate has failed to bring to a vote two bills that would have extended subsidies under the Affordable Care Act (ACA) beyond the end of the year. Meanwhile, a coalition of 22 House Democrats and 15 House Republicans, led by Rep. Jennifer Kiggans, R-Va., has proposed the CommonGround for Affordable Health Care Act bill, which could at least temporarily extend subsidies if passed. 

The Democrats introduced a bill that would have extended the current level of subsidies for three years. The Republican version would have allowed the current subsidy levels to expire, replacing them with a cost-sharing reduction subsidy and $1,000-$1,500 in cash for health savings accounts (HSAs) for low- and moderate-income individuals. Neither bill attracted the necessary 60 votes to reach the floor without the threat of a filibuster.

The rejection of the bills proposed by both Democrats and Republicans has left the subsidies to expire with no recourse for the millions of Americans who rely on them. According to estimates by the Kaiser Family Foundation, out-of-pocket costs for a typical family with ACA coverage could double. Others have reported that the expiration of the subsidies will cause their ACA premiums to increase exponentially. 

ACA subsidies increased during the COVID-19 pandemic due to legislation that allowed subsidies for anyone whose annual premium costs exceeded 9% of their income. With the expiration of the increased subsidies, only individuals who earn less than 400% of the federal poverty level (currently $62,600 for an individual in most of the U.S.) per year are eligible.

HBL has experience in all areas of benefits and employment law, offering a comprehensive solution to all your business benefits and HR/employment needs. We help ensure you are in compliance with the complex requirements of ERISA and the IRS code, as well as those laws that impact you and your employees. Together, we reduce your exposure to potential legal or financial penalties. Learn more by calling 470-571-1007.

The following two tabs change content below.

Hall Benefits Law, LLC

HBL offers employers comprehensive legal guidance on benefits in mergers and acquisitions, Employee Stock Ownership Plans (ESOPs), executive compensation, health and welfare benefits, healthcare reform, and retirement plans. We counsel a wide spectrum of clients including small, mid-sized, and large companies, 401(k) investment advisors, health insurance brokers, accountants, attorneys, and HR consultants, just to name a few. HBL is passionate about advising clients, and we are dedicated to our mission: to provide comprehensive, personalized, and practical ERISA and benefits legal solutions that exceed client expectations.