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This week, President Donald Trump indicated that he may veto legislation that aims to extend tax credits for people on the Affordable Care Act’s (ACA) marketplace, if such legislation reaches his desk.
The credits, which are used to assist with paying for health care premiums, were originally established during the coronavirus pandemic, to allow more people to take part in the marketplaces for the ACA, also known as Obamacare. But after several months of debate — including an impasse that led to a month-long government shutdown — the Republican-controlled Congress refused to pass an extension of the credits into this year, leading to higher costs for tens of millions of people at the start of 2026.
The expiration of those subsidies will mean those who had previously received them will now see their premiums increase, with the average household set to see their health costs for the year more than double.
Earlier this month, after Democrats in the House of Representatives, joined by a handful of Republicans, forced a vote on extending the credits through a discharge petition, the House voted in favor of doing so. The measure faces uncertain odds in the Senate, where a Republican filibuster could stall it unless at least 13 Republicans join with every Democrat in the chamber to end the procedural block.
Even if the Senate defies the odds and passes the bill, however, Trump has indicated he may not sign it, as he prefers doing away with credits in favor of establishing health savings accounts (HSAs) for marketplace participants, a move that health care experts say won’t help with affordability issues.
In comments to reporters aboard Air Force One on Sunday, Trump was asked if he would veto a Senate-passed bill. Trump indicated he might be inclined to.
“I might, yeah,” he said.
Already this month, there has been a wave of people leaving the ACA marketplace, most likely due to higher premium costs. According to a report published on Tuesday, there are 1.4 million fewer people enrolled in Obamacare coverage this year compared to last, a 6 percent decrease year-over-year. Experts believe that many more will exit the program as the credits remain unrenewed.
In a KFF survey of ACA marketplace members published in early December, 6 in 10 participants (58 percent) said they wouldn’t be able to afford even a $300 annual increase in health expenses, with another 20 percent in the survey saying they couldn’t afford an increase of $1,000 annually.
A different KFF survey from September showed immense support for renewing the ACA credits, with around three in four Americans, 74 percent, supportive of the idea. That figure includes 94 percent of Democratic-leaning voters, 76 percent of independents, and even 50 percent of GOP voters.
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