January 7, 2026
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National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, urges all members to vote “NO” on legislation that would extend the enhanced Obamacare subsidies for three years. Initially enacted as an emergency measure by President Biden in the American Rescue Plan Act of 2021, these enhanced subsidies funnel taxpayer dollars directly to insurance companies. This expensive giveaway distorts health care markets, burdens taxpayers, and was never intended to be an ongoing feature of federal health policy.
Obamacare failed to make health care more accessible for Americans. Federal subsidies to insurance companies shield consumers from the true cost of coverage, which only drives costs higher. Keeping premiums artificially low does not reduce the actual cost of care. It simply shifts the burden onto taxpayers, while allowing insurers to maintain or raise rates without meaningful competition. Since 2013, premiums for the typical individual Obamacare plan have more than doubled, leaving patients with higher costs and fewer choices.
A shocking report by the Government Accountability Office recently exposed widespread fraud in the Obamacare marketplace, showing that fake identities, misused Social Security numbers, and even dead people were receiving subsidies. Without any safeguards, such as minimum premium payments or income caps for eligibility, this three-year extension would simply continue padding the profits of large insurance companies while doing nothing to slow the growth of health care spending. It would also fail to safeguard taxpayer dollars from outright fraud.
Instead of throwing more money at failed policies, lawmakers should build on market-oriented solutions they have already advanced. The House has already passed the Lower Health Care Premiums for All Americans Act, offering a clear policy alternative that lowers costs by expanding competition and consumer choice instead of endless government subsidies. According to the Congressional Budget Office, this approach would reduce benchmark premiums by an average of 11% through 2035. House lawmakers should capitalize on the progress they have achieved by considering further reforms, such as expanding the availability of Health Savings Accounts (HSAs).
Lawmakers have proven they can pass legislation that lowers costs without extending blank checks to private insurers. They should not abandon that progress by doubling down on a subsidy model that leaves taxpayers footing the bill.
Roll call votes on legislation to extend the subsidies will be included in NTU’s annual Rating of Congress and “NO” votes will be considered the pro-taxpayer position.
If you have any questions, please contact NTU Policy and Government Affairs Manager Alexander Ciccone at aciccone@ntu.org.
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