Future of ACA Tax Credits up for Vote in Senate

December 08, 2025

The much-anticipated vote on Affordable Care Act (ACA) tax credits is expected later this week, and it’s unclear if any proposal will meet the 60-vote threshold needed to advance.

The U.S. Senate on Thursday is expected to vote on the Democrats’ bill to extend premium support for three years. The promise of a vote on the issue was the essential piece in the bipartisan deal to end the record-setting government shutdown last month.

Republican lawmakers have been circulating their own framework for a health care deal, but no public proposal has been released. Some party leaders have favored an approach that would put funding in tax-advantaged health savings accounts in lieu of the premium support.

 Last week, Senate Democrats released their plan for a “clean” three-year extension of Affordable Care Act tax credits. The plan is unlikely to have the 60 votes necessary to advance to the House.

In Pennsylvania, the state marketplace Pennie has grown 50 percent from 2020 to 2025, approaching 500,000 enrolled. Much of that growth was fueled by the pandemic-era enhanced subsidies that have made care more affordable. In Pennsylvania a 60-year-old living within 401 percent of the poverty line would see a 173 percent increase without the tax credits. Pennsylvania officials have said 150,000 Pennsylvanians could drop health coverage if the enhanced premium tax credits are not extended.

This fall, HAP has warned of the potential fallout of failing to extend the ACA premium assistance.

“We urge you to protect affordable coverage for Pennsylvanians by preserving enhanced premium tax credits,” HAP noted in a letter earlier this year. “These actions are vital to prevent further uncompensated care burdens that put care at risk for entire communities, protect our most vulnerable residents, and maintain the health and competitiveness of our commonwealth.”

HAP will monitor the latest on ACA tax credits and provide updates to members. For questions or comments, contact John Myers, vice president, federal advocacy.