The federal government has shut down for the first time since 2019 after lawmakers failed to reach a funding deal, with the fate of enhanced ACA subsidies, set to expire at year’s end, hanging in the balance.
Premium tax credits were originally available for enrollees making between 100% and 400% of the federal poverty limit. In 2021, the American Rescue Plan Act increased the amount of these tax credits and expanded marketplace eligibility to households with an annual income over 400% of the federal poverty limit, capping out-of-pocket premiums for a benchmark plan at 8.5% of income.
Since the introduction of the enhanced credits, ACA marketplace enrollment has more than doubled from 11.4 million in 2020 to 24.3 million in 2025, according to KFF. ARTICLE