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Disability Policy News

AUCD's Disability Policy News (DPN) is a weekly newsletter highlighting federal policy issues affecting people with disabilities and their families. DPN features updates in plain language and action steps that people can take to educate policymakers. DPN is published every Friday.

December 5, 2025 | Vol. MMXXV | Issue 140

In this edition:

  • Healthcare
  • Department of Health and Human Services
  • Congressional Hearings
  • Department of Education
  • President Trump Uses R-Word
  • New Legislation
  • AUCD Materials
  • Words to Know

Healthcare

Senate Democrats are introducing a proposal for a clean three-year extension of the Affordable Care Act (ACA) extended tax credits. The tax credits expire at the end of the year, and have been a wedge issue between Congressional Republicans and Democrats for months. If the tax credits expire, ACA marketplace premiums will more than double on average starting in 2026. Meanwhile, House Speaker Mike Johnson is working to finalize a healthcare plan that will likely propose an alternative framework to the ACA.

Key Takeaways

It is not looking likely that Congress will pass an extension of the ACA tax credits before they expire. While most Congressional Democrats have been pushing for an extension, Republicans have been more interested in alternative proposals to save money on healthcare, with broad interest in letting the tax credits expire. Senators Susan Collins (R-ME), Lisa Murkowski (R-AK), and Thom Tillis (R-NC) have signaled interest in a two-year extension, but want to include income caps to narrow eligibility for the tax credits. Representative Brian Fitzpatrick (R-PA) is also working on a proposal to extend the subsidies. House Minority Leader Hakeem Jeffries (D-NY) sent a Dear Colleague letter in which he wrote that House Democrats have introduced a discharge petition that will trigger an up-or-down vote on a three-year extension of the Affordable Care Act tax credits. The White House was previously working on a proposal but that hasn’t been finalized yet.

Democrats established enhanced Affordable Care Act tax credits under the American Rescue Plan, which increased enrollment in ACA Marketplaces. The enhanced provision made more people eligible for the tax credits and increased the amount of tax credits. The enhanced version will expire on December 31, and their expiration could result in millions more uninsured people and higher premiums. Learn more from KFF here.

Plain Language

Many people are able to pay less for healthcare every month because of something called "tax credits." A tax credit is an amount of money that people can save when they file their taxes. Usually, they are a reward from the federal government. For example, if the federal government wants more people to get health insurance, they might offer a tax credit to people who get health insurance. The Affordable Care Act has special tax credits that will end on December 31, 2025. Democrats want to make sure that people can still use these tax credits in the future so they can save money and afford healthcare.

Senate Democrats want to pass a bill to make sure people can still use these tax credits for three more years. They know that a lot of people will have to spend more money on healthcare if the tax credits go away. House Democrats are trying to force Republicans to vote on a bill to keep using the tax credits. Republicans in Congress are not as supportive of these tax credits, and they want to try different ideas to save money on healthcare. The leader of the House of Representatives, Speaker Mike Johnson (R-Louisiana) has his own plan, and the Administration also has said the President has a plan. It might not be possible for Congress to pass a bill so that people can still use the tax credits before time runs out. Senators Susan Collins (R-Maine), Lisa Murkowski (R-Alaska), and Thom Tillis (R-North Carolina) have talked about how they might be interested in a bill to help people use the tax credits for two more years. They want to decrease the number of people who can use the tax credits. They would make the tax credits available for people depending on how much money they make. Representative Brian Fitzpatrick (R-Pennsylvania) is also working on a proposal to extend the subsidies. Democrats are worried that people will have pay a lot more for their healthcare starting at the beginning of 2026.

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