Senate rejects extension of health care subsidies as costs are set to rise for millions of Americans

AP News  – Thursday, December 11, 2025
By Mary Clare Jalonick

WASHINGTON (AP) — The Senate on Thursday rejected legislation to extend Affordable Care Act tax credits, essentially guaranteeing that millions of Americans will see a steep rise in costs at the beginning of the year.

Senators rejected a Democratic bill to extend the subsidies for three years and a Republican alternative that would have created new health savings accounts — an unceremonious end to a monthslong effort by Democrats to prevent the COVID-19-era subsidies from expiring on Jan. 1.

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