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Health insurance premiums are expected to rise significantly for approximately 22 million Americans after Republicans ended a tax credit for those enrolled in programs under the Affordable Care Act.
Democratic leaders said Thursday that they plan to hold up negotiations on a potential government shutdown unless Republicans agree to forfeit a policy change that is expected to dramatically raise health insurance premiums for millions of Americans.
Health insurance premiums are expected to rise significantly for approximately 22 million Americans enrolled in Affordable Care Act (ACA) marketplace plans after Republicans refused to extend enhanced tax credits when passing Trump's "One Big Beautiful Bill Act" in July.
In remarks on Capitol Hill Thursday, Senate Minority Leader Chuck Schumer (D-N.Y.) said he and Democratic House Leader Hakeem Jeffries (N.Y.) were in total agreement not to negotiate unless Republicans agree to extend the tax credits.
“On this issue, we’re totally united. The Republicans have to come to meet with us in a true bipartisan negotiation to satisfy the American people’s needs on healthcare, or they won't get our votes, plain and simple,” Schumer warned at a press conference.
"We will not support a partisan spending agreement that continues to rip away healthcare from the American people. Period. Full stop,” Jeffries said.
The enhanced tax credits, which were created in 2021 under the American Rescue Plan Act and later extended through the Inflation Reduction Act in 2022, are credited with reducing the insurance premiums of millions of people who purchase health insurance through government exchanges.
The tax credits have reduced insurance premiums by 44% on average—over $700 per enrollee—and have contributed to the number of people purchasing insurance on the exchanges more than doubling to over 24 million in 2025.
According to a report released Wednesday by KFF:
Nine in 10 enrollees (92%) receive some amount of premium tax credit. If these enhanced tax credits expire at the end of 2025, out-of-pocket premiums would rise by over 75% on average for the vast majority of individuals and families buying coverage through the Affordable Care Act (ACA) Marketplaces.
The increases come as insurance companies, citing "slumping share prices," per the Financial Times, are planning the largest hike to premiums in 15 years, including an 18% increase for those buying from ACA exchanges.
These increases will come on top of those already expected as a result of a Trump administration rule passed in June, which increased the maximum percentages of income and raw dollar amounts that insurance plans could charge patients out-of-pocket for care.
According to the Center for Budget and Policy Priorities, these changes "will make coverage less affordable for millions of people." The CBPP estimates that "a family of four making $85,000 will have to pay an additional $197 in premiums for coverage in 2026" while a "family of two or more people on the same plan could face an additional $900 in medical bills if a family member is seriously ill or injured in 2026, and an individual enrolled in self-only coverage could face an additional $450 in medical bills."
In all, the Congressional Budget Office estimated in May that as a result of these mounting costs, over 5 million people will no longer be able to afford their health insurance plans.
"The death star of American healthcare, the insurance companies are preparing to blow up the lives of millions of middle-class families," warned journalist David Sirota in a podcast for The Lever.
Republicans in Congress are facing mounting pressure to extend the tax credits and stave off the premium hikes. Last week, 11 Republicans in Congress signed onto a bill that would extend the credits through 2026, allowing them to avoid the issue until after the midterm elections.
A survey conducted in July by two of Trump's most trusted pollsters, Tony Fabrizio and Bob Ward, found that for Republicans in the most competitive districts, "a 3-point deficit becomes a 15-point deficit" against the generic Democrat if they allow the healthcare premium tax credit to expire.
House Speaker Mike Johnson (R-La.) has stayed coy about whether he and the Republican caucus plan to support extending the credits.
"I'm not going to forecast that right now," Johnson told reporters earlier this week, while also saying, "There's a lot of opposition to it as well."
Democrats, meanwhile, have proposed a competing bill to make the subsidies permanent and are hoping to use this month's budget showdown to force Republicans to make concessions on the issue.
As David Dayen wrote Monday for the American Prospect, it sets up a challenging strategic and moral dilemma for Democrats:
On the one hand, Democrats fighting for healthcare benefits speaks to an issue where they have the highest level of support from the public. They would credibly be able to tell voters that they fought for lower costs during an affordability crisis and won, and that more of that will happen if they are given power in the midterms.
On the other hand, Republicans willingly drove the healthcare system toward the point of oblivion, and some may question why Democrats would offer a lifeline to bail them out. In this reading, relieving Republicans of the consequences of their health care plans would be harmful to Democratic midterm chances; Trump would take credit for keeping health care costs low.
What's clear, Dayen said, is that "unless action is taken, it will be an enormous example of Trump's failure to rein in the runaway cost of living."
Lisa Gilbert, co-president of Public Citizen, urged Democrats to stand firm as the fight over a potential government shutdown heats up.
"If Republicans refuse to negotiate and move away from their cost-increasing agenda, then it is Republicans who will be forcing a government-wide shutdown," Gilbert said. "There should be no deal without assurances that the budget will be honored and not impounded, and one that returns care to the American people.”
In a race that bodes well for Democrats' hopes in 2026, Catelin Drey won by championing "affordable housing, childcare, and healthcare, strong public schools, and bodily autonomy," wrote one progressive Iowa journalist.
Democrats have broken the GOP stranglehold over Iowa's statehouse with a resounding win in a special election for the state Senate on Tuesday.
In the Sioux City-area district that Donald Trump carried by more than 11 points in 2024 and which had been won by Republicans for 13 consecutive years, Democrat Catelin Drey is projected to have won a convincing 55% of the vote over her Republican opponent, Christopher Prosch.
By taking the vacant seat, Democrats not only added to the mounting evidence for a coming anti-Trump backlash in the midterms, but also ended the Republican supermajority in Iowa's state Senate, which has allowed the GOP to spend the past three years curtailing abortion rights, stripping civil rights protections from transgender people, and chipping away at public education.
Additionally, the Democrats have thrown up a barrier to Republican Gov. Kim Reynolds, who needs a supermajority to confirm appointments and will now require some measure of bipartisan approval.
Like other successful Democratic candidates, Drey's message focused on affordability, with a special emphasis on the cost of living for families. Her slogan was "Iowa's Senate needs more moms."
"She has highlighted issues of particular importance to young parents," wrote Laura Belin for the progressive Iowa politics site Bleeding Heartland. "Affordable housing, childcare, and healthcare, strong public schools, and bodily autonomy."
Drey seized on outrage toward Republican attempts to defund public schools. Teachers, she said in one ad, "shouldn't have to rely on GoFundMes just to do their jobs."
"One takeaway from the Iowa special election: don't listen to centrist Democrats on education," said Jennifer Berkshire, an education writer for The Nation and the New Republic. "Catelin Drey made defending and funding public schools a focal point of her campaign and called for rolling back Iowa's controversial school voucher program."
Drey's victory adds to the already mounting pile of evidence that backlash towards President Donald Trump, whose approval ratings have skidded to near-record lows in recent weeks, will manifest at the ballot box next November.
G. Elliott Morris, a political data journalist, wrote Wednesday in his Strength in Numbers newsletter that "there have been plenty of special elections" this year, with "all of them suggesting a pretty sizable leftward shift in the electoral environment since November 2024."
Citing data from The Downballot's special election tracker, Morris wrote:
On average in 2025, Democratic candidates in special elections are running about 16 percentage points ahead of Kamala Harris’s margin versus Donald Trump in last year’s presidential election. That is 5-6 points higher than the average Democratic overperformance in 2017.
These crushing results, Democratic strategists say, are the reason behind Republicans' frantic efforts to ratchet up gerrymandering in states like Texas, where they control the state legislature.
"If you're wondering why Republicans are gerrymandering the fuck out of red states," said Democratic fundraiser Mike Nellis, "Democrats just flipped a Trump [+11] Iowa Senate seat. That's what they're afraid of."
With Drey's victory, Iowa Democrats have now won four consecutive special elections held in the state, flipping two other Republican-held seats. Riding that wave of optimism, they now have their sights set on a greater target: Iowa's two-term senator Joni Ernst, who comes up for reelection in 2026.
Defeating Ernst would be a significant boost to Democrats' efforts to regain control of the Senate in 2026. That effort may have been helped along by Ernst herself, who responded to questions at a town hall earlier this year about her support for savage cuts to healthcare in the GOP's One Big Beautiful Bill Act by callously remarking, "Well, we are all going to die."
An internal poll published Tuesday showed Democratic state senator Zach Wahls, one of many Democrats vying for the party's nomination, edging Ernst out in a hypothetical general election. Other polls show the race to be within the margin of error.
In a video posted to X, Wahls said Tuesday's Democratic victory is further evidence that "the state is in play," after not having elected a Democratic senator since 2008.
"Iowans are sick of the inability of the current administration and politicians like Joni Ernst to deal with rising costs. They are sick of the corruption, and they are ready for change," Wahls said. "We are going to flip this US Senate seat, the exact same way that Catelin Drey flipped her state Senate seat."
Rep. Greg Casar accused Trump and his Republican allies of "trying to pull off the most corrupt bargain I've ever seen."
Progressives rallied across the country on Saturday to protest against US President Donald Trump's attempts to get Republican-run state legislatures to redraw their maps to benefit GOP candidates in the 2026 midterm elections.
The anchor rally for the nationwide "Fight the Trump Takeover" protests was held in Austin, Texas, where Republicans in the state are poised to become the first in the nation to redraw their maps at the president's behest.
Progressives in the Lone Star State capital rallied against Trump and Texas Gov. Greg Abbott for breaking with historical precedent by carrying out congressional redistricting in the middle of the decade. Independent experts have estimated that the Texas gerrymandering alone could yield the GOP five additional seats in the US House of Representatives.
Speaking before a boisterous crowd of thousands of people, Rep. Lloyd Doggett (D-Texas) charged that the Texas GOP was drawing up "districts set up to elect a Trump minion" in next year's midterms. However, Doggett also said that progressives should still try to compete in these districts, whose residents voted for Trump in the 2024 election but who also have histories of supporting Democratic candidates.
"Next year, [Trump is] not going to be on the ballot to draw the MAGA vote," said Doggett. "Is there anyone here who believes that we ought to abandon any of these redrawn districts and surrender them to Trump?"
Leonard Aguilar, the secretary-treasurer of Texas AFL-CIO, attacked Abbott for doing the president's bidding even as people in central Texas are still struggling in the aftermath of the deadly floods last month that killed at least 136 people.
"It's time for Gov. Abbott to cut the bullshit," he said. "We need help now but he's working at the behest of the president, on behalf of Trump... He's letting Trump take over Texas!"
Aguilar also speculated that Trump is fixated on having Texas redraw its maps because he "knows he's in trouble and he wants to change the rules midstream."
Rep. Greg Casar (D-Texas) went through a litany of grievances against Trump and the Republican Party, ranging from the Texas redistricting plan, to hardline immigration policies, to the massive GOP budget package passed last month that is projected to kick 17 million Americans off of Medicaid.
However, Casar also said that he felt hope watching how people in Austin were fighting back against Trump and his policies.
"I'm proud that our city is fighting," he said. "I'm proud of the grit that we have even when the odds are stacked against us. The only answer to oligarchy is organization."
Casar went on to accuse Trump and Republicans or "trying to pull off the most corrupt bargain I've ever seen," and then added that "as they try to kick us off our healthcare, as they try to rig this election, we're not going to let them!"
Saturday's protests are being done in partnership with several prominent progressive groups, including Indivisible, MoveOn, Human Rights Campaign, Public Citizen, and the Communication Workers of America. Some Texas-specific groups—including Texas Freedom Network, Texas AFL-CIO, and Texas for All—are also partners in the protest.