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ACA Subsidies Expire Jan. 1: Millions Brace For 114% Premium Surge As Shutdown Nears

Dallas Express | Dec 29, 2025
Congressional chamber | Image by Canva

Congress faces another potential government shutdown on January 30 after lawmakers left Washington for the holidays without addressing skyrocketing health care costs for millions of Americans.

Federal funding runs out at the end of January, requiring Congress to pass a new spending bill while also confronting the expiration of Affordable Care Act subsidies that affect 22 million people.

Starting on January 1, those Americans will see their health insurance premiums jump by an average of 114%. The massive increase comes as the tax credits that helped make coverage affordable expire on New Year’s Day.

Democrats may demand that the subsidies be included in January’s spending negotiations. They made similar demands during the previous shutdown, but ultimately passed a bill without the credits.

“The bottom line is very clear,” Senate Minority Leader Chuck Schumer said, per Fox News. “You can’t do it after January 1. Once it expires, the toothpaste is out of the tube.”

Republicans blocked a three-year extension of the subsidies in December.

Some Republicans signal openness to compromise. Rep. Don Bacon of Nebraska supports a temporary extension while Congress debates permanent solutions.

“We have constituents. They’re gonna have their premiums go up. That doesn’t help them. That’s why I think we need a temporary extension,” Bacon told Fox News.

Time remains tight for negotiations. The House and Senate have only eight days in session together before the January 30 deadline.

The stakes are high after the previous shutdown. That 43-day closure set a record as the longest in U.S. history, leaving federal workers without paychecks and disrupting airline travel.

Food banks saw long lines as nutrition assistance programs faltered. The emotional toll on families heading into the holidays compounded the financial damage.

A vote on health care subsidies could come in early January. But any action would arrive too late for the millions facing immediate premium increases on January 1.

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