On Jan. 8, 2026, the U.S. House of Representatives voted to extend enhanced Affordable Care Act (ACA) subsidies, also known as the expanded premium tax credit (ePTC), for three years. Seventeen Republicans joined Democrats to pass the measure 230–196. The legislation would revive the ePTC, which expired on December 31, 2025.
Supporters said the vote could pressure the upper chamber toward a bipartisan compromise. Rep. Rob Bresnahan (R), who voted for the extension, said, “The Senate could put together a product that could ultimately get sent back over to the House that we can then conference on and hopefully move across the finish line.”
Opponents criticized the measure as poorly designed. House Speaker Mike Johnson (R) said, “I think it’s a really bad policy, and I wish they hadn’t, but everybody had a vote,” reflecting GOP leadership concerns about fraud and lack of reforms.
The extension of the tax credits was a major point of debate during the government shutdown, which lasted from October into November and became the longest on record.
Background on premium tax credits
Premium tax credits are subsidies that help eligible individuals and families pay for health insurance purchased through federal or state marketplaces established under the Affordable Care Act. Congress created the credits in 2010, and they first became available in the 2014 tax year to households with incomes between 100% and 400% of the federal poverty level (FPL).
In 2021, Congress enacted the American Rescue Plan Act (ARPA), which temporarily expanded the credits. The expansion—known as the expanded or enhanced premium tax credit (ePTC)—removed the upper income limit for eligibility and lowered the share of income households were required to pay toward premiums. The Inflation Reduction Act later extended these expanded provisions through the end of 2025.
According to the Congressional Budget Office, the premium tax credit "is a refundable credit that helps eligible individuals and families cover the premiums for their health insurance purchased through the Health Insurance Marketplace."
Expiration and Legislative History of the ePTC
The ePTC expired on Dec. 31, 2025, returning eligibility and premium contribution rules to their original ACA structure. As of 2025, approximately 22.4 million people received the advanced premium tax credit.
The House-passed bill would extend the ePTC for three additional years. Senate negotiators, however, have discussed alternative proposals that would include a shorter extension combined with changes such as income caps, minimum premium contributions, and additional program integrity measures.
Congress has modified the premium tax credit program multiple times since its creation. In addition to the ARPA and Inflation Reduction Act extensions, the One Big Beautiful Bill Act made several administrative and enforcement changes to the program, including eliminating caps on repayment of excess advanced credits and tightening eligibility verification requirements. That law did not alter eligibility thresholds or premium contribution caps under the expanded credit.
Future of the ePTC
According to reporting from Politico, a bipartisan group of Senators was working to release a plan to extend the ePTC as early as Jan. 13. Key points of negotiation included the use of federal funds for abortions.
Click here for arguments in support and opposition to extending the ePTC.