House Minority Leader Hakeem Jeffries (D-N.Y.) on Tuesday rejected a short-term extension of Obamacare subsidies as part of an effort to reopen the government, calling it a “laughable proposal” that won’t win Democratic support.
Rape. Rep. Jane Kiggs (R-Va.) is pushing legislation to extend the Affordable Care Act tax credit through the end of 2026, set to expire on Jan. 1. The proposal has bipartisan support, and some political observers see it as a launching pad to securing a deal to reopen the government.
Jeffries, however, has other ideas, saying a one-year extension is “a non-starter.” He emphasized that President Trump and Republicans had earlier in the year adopted a permanent extension of the tax cuts for the nation’s wealthiest. With that in mind, he’s seeking a similar permanent extension of the increased ACA subsidies, which overwhelmingly help working-class people.
“To think that the Democrats are these MAGA extremists going along with a one-year extension from a group of people that mean Republicans, who have permanently extended massive tax breaks for their billionaire donors?” Jeffries told reporters at the Capitol.
“It’s a laughable proposal. It makes no sense,” he said. “The Democratic position has been clear: permanent expansion, and let’s go from there.”
Republicans have opposed the ACA since it was adopted in 2010 under President Obama, and conservatives in the Capitol are pressuring GOP leaders to allow the ACA tax credits, which were extended during the COVID pandemic under President Biden, to expire as scheduled.
The issue is creating a dilemma for Speaker Mike Johnson (R-LA) and other GOP leaders, however, since the expiration is expected to increase health care costs, not only for the more than 20 million patients on the Obamacare exchanges, but for millions of others as well.
Rape. Marjorie Taylor Greene (R-Ga.) on Monday Said He is “absolutely disgusting” that health insurance premiums could double if the tax credit expires, criticizing Republicans and the Affordable Care Act in the same post.
“Not a single Republican in leadership has talked to us about this or given us a plan to help Americans deal with their health insurance premiums.” Green wrote.
Kiggans’ bill is designed to prevent the tax credit from expiring — at least before the midterm elections — and many moderate Republicans have supported the bill. Many of them are facing tough re-election competitions which could lead to control of the house.
Shortly before Jeffries spoke Tuesday morning, Johnson said Republicans planned to use the month of October to debate the future of the ACA tax credits. But he and other GOP leaders are refusing to make that discussion part of the current effort to reopen the government with a short-term spending bill.
“It’s a Dec. 31 issue,” Johnson said.
He also warned that any expansion of the subsidies would have to be accompanied by major changes to how they are structured, or he would not bring the bill to the floor for a vote.
“There are a lot of conversations and deliberations and discussions right now, even bipartisan among members, about the necessary changes that have to be made — very dramatic changes — to even be considered on the floor,” Johnson said.
“It’s implied as if it’s been ignored in some way. That’s not the case at all.”
Jeffries, however, seemed to shoot down the idea of imposing new limits on ACA subsidies, to include limits on payments and restrictions on eligibility.
“If that’s their situation, they can take the increase,” he said.
