By Richard Cowan
WASHINGTON, Jan 8 (Reuters) – The Republican-controlled U.S. House of Representatives was poised on Thursday to pass Democratic-backed legislation that would restore outdated health care subsidies, as millions of Americans face significant price increases for coverage.
The Republican-controlled Senate has already rejected a similar bill, but passage in the House could prompt a compromise. Senate negotiators are weighing proposals that would extend subsidies for less than three years, limit coverage to people below a certain income level, and ease abortion limits sought by conservatives.
Opinion polls show “affordability” is voters’ biggest concern, and lawmakers are looking to take action to limit price increases ahead of November elections that will determine control of Congress.
“Democrats will make health care and cost of living the top issue for all of 2026,” Senate Democratic Leader Chuck Schumer said at a press conference.
Congress has allowed tax cuts that benefit 24 million Americans who get their coverage through the Affordable Care Act to expire at the end of 2025. Restoring those subsidies would lead to 6.2 million more people enrolled in the program and cost the government $80.6 billion over 10 years, according to the nonpartisan Congressional Budget Office. The Affordable Care Act, nicknamed “Obamacare,” became law in 2010 over Republican opposition and the subsidies were passed in 2021 in response to the COVID pandemic without any Republican votes.
The House vote amounts to an impressive victory for Democrats, who led to a record 43-day government shutdown last fall in an unsuccessful effort to extend subsidies.
Americans have until January 15 to enroll in ACA coverage for this year, although the Trump administration may extend that deadline.
Democratic Representative Jim McGovern of Massachusetts said some of his constituents were facing thousands of dollars in higher monthly costs due to Washington’s failure to enact a solution.
Republicans recognize the need to keep costs down, but say the program is riddled with fraud and waste.
“We have to start by stopping throwing good money after bad” on the program, Republican Representative Jodey Arrington of Texas said on CNBC.
(Reporting by Richard Cowan; additional reporting by Amina Niasse in New York; editing by Andy Sullivan and Chizu Nomiyama)