President Donald Trump has floated a proposal to put the billions of dollars that back Affordable Care Act tax credits directly in the pockets of Americans instead, as lawmakers have so far failed to find a solution to address the rapidly approaching expiration of the enhanced subsidies that is at the heart of the record-breaking shutdown stalemate.
Trump urged Senate Republicans in a Truth Social post on Saturday to send the money used to offset the costs of ACA health care premiums “directly to the people” so they can “purchase their own, much better, health care.”
The president did not provide any further details, though fiscal hawk GOP Sen. Rick Scott enthusiastically announced on X that he’s “writing the bill right now.”
Currently, ACA enrollees who qualify for tax credits, also known as premium subsidies, never see the funds. They are sent directly to insurers to offset people’s monthly premiums.
More than 90% of Obamacare enrollees qualify for the enhanced subsidies in 2025.
Republicans have decried the subsidy system as enriching insurers, with some supporting sending the funds directly to Americans to give them more control over their health insurance decisions.
Despite sparking widespread interest among Trump’s Republican allies, Treasury Secretary Scott Bessent said Sunday that the administration does not have a formal proposal before the Senate.
Pressed by ABC News on why Trump was posting about the idea online, Bessent reaffirmed the president’s unwillingness to engage in real bipartisan health care talks until the shutdown ends.
“We have got to get the government reopen before, you know, we do this,” he said. “We are not going to negotiate with the Democrats until they reopen the government. It’s very simple. Reopen the government, then we can have a discussion.”
Trump’s appeal to Senate Republicans comes as Democratic lawmakers are digging in on their attempt to force the GOP to the negotiating table on extending the enhanced ACA subsidies that are due to expire at the end of this year.
Senate Minority Leader Chuck Schumer laid out a plan on Friday that would have provided the Democratic votes needed to reopen the government in exchange for a one-year extension, though Senate Majority Leader John Thune immediately poured cold water on it.
While Democrats demand extending the ACA credits, Republicans have made clear that making major changes to former President Barack Obama’s signature health care law is a priority for them.
GOP Sen. Lindsey Graham called the ACA “the biggest scam on the planet,” touting Trump’s proposition to put money in the pockets of Americans to purchase their own insurance plans.
The South Carolina Republican predicted a weekend “breakthrough” in funding talks on Capitol Hill, where negotiators so far have not presented a compromise deal that includes an ACA solution that would win over enough Democrats to back a short-term bill to end the shutdown.
“I think we’ll have a breakthrough today. Then we’ll talk about how to change Obamacare to give the money to the people rather than insurance companies,” he told “Fox Sunday Futures.”
Democrats so far have shown no appetite to seriously consider Trump’s proposal.
House Minority Leader Hakeem Jeffries quickly dismissed the idea in an interview on Sunday as he slammed the GOP’s openness to negotiate a real fix to the health care system.
“Of course, there’s always opportunity to improve current policy that exists, but Republicans aren’t operating in good faith as it relates to doing anything to actually make health care more affordable,” he said on NBC’s “Meet the Press.”
Sen. Elizabeth Warren, a key progressive voice who’s been urging her Democratic colleagues to hold firm in their health care fight, warned that Trump’s proposal could be “just a Republican bait-and-switch to repeal Obamacare for the 70th time.”
House Speaker Mike Johnson has indicated that his conference is working on a health care plan to address their concerns about the existing system under Obamacare, though GOP leaders have not divulged any details.
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