Republican congressional leaders are reportedly discussing how to extend Obamacare subsidies, but only after Democrats agree to end the federal shutdown.
GOP leaders are quietly holding internal talks with White House officials about how to structure a potential extension of key Affordable Care Act insurance subsidies before they expire on Dec. 31, Politico reported Tuesday.
One option would be to attach a scaled-back, two-year extension of the subsidies to a bipartisan package of funding bills once the shutdown ends, three sources told the outlet.
The effort marks a notable shift for Republicans, some of whom have long opposed the 2010 health law.
Even among conservatives, there is growing recognition that millions of their constituents benefit from the subsidies. The talks, while preliminary, suggest the GOP is open to extending the Obamacare tax credits with conditions.
Republican leaders are weighing several restrictions to win over skeptics. They include an income cap on eligibility, a requirement for minimum out-of-pocket premiums, and a phaseout of new enrollments while keeping current participants, Politico reported.
House Majority Leader Steve Scalise, R-La., has pushed to expand association health plans and tax-free health savings accounts (HSAs) as part of any package, while Senate Majority Leader John Thune, R-S.D., wants new limits on the subsidies and other conservative health reforms.
The plan, if pursued, could face a rocky path in the House.
Speaker Mike Johnson, R-La., would have to overcome opposition from hard-liners opposed to any Obamacare expansion.
One idea is to advance the package under “suspension of the rules,” requiring a two-thirds bipartisan majority, a move that would likely need public support from President Donald Trump to pass.
Republicans believe Trump’s backing would be essential to bringing enough conservatives on board.
GOP leaders, however, are holding firm publicly: no talks until Democrats agree to reopen the government.
“We need folks in good faith to come around the table and have that discussion — and we can’t do it when the government is shut down,” Johnson told The Hill.
He has also called the end-of-year deadline to extend the subsidies “an eternity away,” suggesting Republicans saw no rush to act before the shutdown is resolved.
Democrats have tied ending the shutdown to a permanent extension of the subsidies. Their recent bill to do so, blocked by all Senate Republicans, also would have reversed recent Medicaid cuts.
Republicans argue that Democrats’ plan would worsen the deficit. The Congressional Budget Office projected a permanent extension would cost about $350 billion over the next decade.
As The Wall Street Journal noted, more than 20 million Americans currently receive ACA subsidies, most residing in states that voted for Trump.
If Congress fails to act, many could face higher premiums or lose coverage when open enrollment begins on Nov. 1.
The Journal also reported that enhanced subsidies, which were expanded under former President Joe Biden’s 2021 COVID-19 relief law, helped ACA sign-ups more than double, particularly in red states.
Still, many Republicans view the program as emblematic of government overreach.
Sen. John Barrasso, R-Wyo., dismissed the subsidies as “Biden Bonuses,” while others want to restore an income cap for eligibility. Yet moderates and political pragmatists warn that letting them lapse could alienate swing voters heading into 2026.
“If we have health care reforms on the table that protect and provide greater freedom and independence for patients and doctors, then I’m on board,” Rep. Chip Roy, R-Texas, told Politico.
© 2025 Newsmax. All rights reserved.
