The U.S. House of Representatives has moved closer to ending the expanded Obamacare health insurance subsidy after advancing a Republican healthcare bill that does not renew the tax credit created during the COVID-19 pandemic.
The bill was passed on Wednesday by a narrow 216–211 vote, a margin that reflects deep divisions within Congress. The expanded subsidy, which lowered monthly premiums for millions of Americans under the Affordable Care Act (ACA), is now set to expire at the end of the year unless further legislative action is taken.
Earlier in the day, the House voted 204–203 on a procedural motion to block a Democratic-backed attempt to force an immediate vote on a three-year extension of the subsidy. The move sparked protests from Democrats, who accused Republican leadership of prematurely closing the vote. Democratic Representative Jim McGovern of Massachusetts described the process as “outrageous.”
House Speaker Mike Johnson later confirmed that a vote on the proposed extension would not be scheduled until early January, when Congress returns from its end-of-year recess. Johnson said the enhanced subsidy “was not good policy” and signalled his intention to oppose it.
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The subsidy affects about 24 million Americans who buy health insurance through ACA marketplaces. Without renewal, many enrollees are expected to face higher premiums beginning on January 1, potentially forcing some to drop coverage or switch to less comprehensive plans. Senate Democratic Leader Chuck Schumer warned that millions could lose healthcare access as a result.
The Republican bill aims to reduce overall federal subsidies while lowering premiums for some consumers and raising costs for others from 2027. It also expands access to association health plans for small businesses, freelancers and self-employed individuals. The non-partisan Congressional Budget Office estimates the legislation would reduce the number of insured Americans by an average of 100,000 per year through 2035, while cutting federal deficits by $35.6 billion.
The Senate, also controlled by Republicans, rejected competing Republican and Democratic proposals last week and is unlikely to consider the House bill before the recess begins. With no agreement in place, the expanded Obamacare subsidy is poised to expire, intensifying the healthcare debate as Congress prepares to reconvene in the new year.
