BGOV OnPoint: Clash Over ACA Subsidies Drives Shutdown Threat

Washington is careening toward a government shutdown on Oct. 1, with lawmakers far apart on whether to extend Covid-era boosts to Affordable Care Act subsidies.

The enhancements, including wider eligibility for the ACA tax credits, expire Dec. 31. Absent action by Congress, enrollees would see significant premium hikes when open enrollment for 2026 begins Nov. 1 and millions of Americans could lose coverage.

Democratic leaders are insisting that any government funding bill permanently extend the enhanced subsidies, which would cost $350 billion over a decade. Their demands are a nonstarter for Republican leaders, who say they won’t use the stopgap ...