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The Hill
22-07-2025
- Business
- The Hill
Memo advises GOP to extend ACA tax credits
President Trump's 'big, beautiful bill' pays for an extension of his 2017 tax cuts in part through slashing about $1 trillion from Medicaid over the next decade. Democrats across the country are ready to make these cuts the prominent issue ahead of the midterm elections. The memo notes that all benefits from those tax cuts will be nullified because of premium increases if the subsidies are not extended. PUP Research is the sister group to PUP Advocacy, a conservative advocacy organization. 'Unfortunately, data shows that the expiration of enhanced premium tax credits on January 1, 2026, will increase health care costs to a level that will counteract the tax benefits of OBBB for over 20 million people,' the group wrote. Extra subsidies that help people afford ObamaCare premiums that were put in place during the coronavirus pandemic are set to expire at the end of the year, and there are few signs Republicans are interested in tackling the issue at all. If Congress takes no action, premiums for subsidized enrollees are projected to increase by more than 75 percent starting in January 2026, according to health research group KFF. There is broad bipartisan and public support for extending the subsidies, and the memo cited recent polling from Trump pollster Fabrizio Ward that showed Republicans losing support in the most competitive districts if the tax credits expire. But if Republicans extend them, the poll showed they can gain an advantage against Democrats in the midterms. The Republican candidate that supports extending the tax credits would lead the Democrat on the generic ballot by 6 points overall.
The Hill
06-05-2025
- Business
- The Hill
Conservative group: extend ObamaCare subsidies
Plymouth Union Public Advocacy (PUP Advocacy) — founded by former heads of the Republican Governors Association, Republican State Leadership Committee and Republican Attorneys General Association — said in a new memo shared first with The Hill that extending the subsidies while also cutting Medicaid spending through reconciliation could be the key to political success. 'Cutting Medicaid is unpopular, could jeopardize the GOP's chances in the midterms, and could derail President Trump's agenda during his final two years in office,' the group wrote. 'Congress should use the same reconciliation process to extend the enhanced tax credit.' Extending the enhanced tax credits is a 'free-market policy position' that could save upwards of $540 billion if paired with the Medicaid cuts already under consideration, the group argued. Unlike Medicaid, the tax credits allow people to buy insurance on the private market. The Congressional Budget Office said permanently extending the subsidies, which come in the form of tax credits, would cost $335 billion over the next 10 years. Republicans have balked at the cost, arguing the credits hide the true cost of the health law and subsidize Americans who don't need the help. Extending the subsidies permanently has been a key Democratic priority, while Republicans have been hesitant, at best, to back the effort. But the group cited polling conducted in February by President Trump's pollster Tony Fabrizio that found extending tax credits was supported by four out of five swing district voters, and it ranked as a top vote mover for them to vote for a Republican candidate. The survey also found that 78 percent of Trump voters supported extending the health care premium tax credits. Millions of enrollees have come to rely on the enhanced subsidies, and they've helped boost health insurance enrollment to record levels.
The Hill
08-04-2025
- Politics
- The Hill
Conservative group launches ads supporting ACA tax credits
Plymouth Union Public Advocacy (PUP Advocacy) — a conservative group founded by former heads of the Republican Governors Association, Republican State Leadership Committee and Republican Attorneys General Association — is spending six figures to air ads on TV and digital platforms this week in Washington, D.C., Idaho, Maine, North Carolina, Alaska, South Dakota and West Virginia. The group argues permanently extending the subsidies should be part of President Trump's 'affordability agenda,' just like extending his 2017 tax cuts. GOP leaders in the House and Senate are working to pass a party-line bill to extend the tax cuts and other Trump priorities. The 30-second ad plays to Republicans' loyalty to President Trump. 'We know we can rely on Trump. But we need Congress to act. Some things are too important,' the ad says. 'Congressional Republicans, don't let us down. Don't drive up health care costs.' Extending the subsidies permanently has been a key Democratic priority, while Republicans have been hesitant, at best, to back the effort. Millions of enrollees have come to rely on the enhanced subsidies, and they've helped boost health insurance enrollment to record levels. Sens. Lisa Murkowski (Alaska) and Thom Tillis (N.C.) have been the only GOP senators to publicly express support for extending ACA subsidies that expire at the end of the year. The enhanced subsidies were first put into effect during the height of the coronavirus pandemic as part of President Biden's 2021 economic recovery law and then extended as part of the Inflation Reduction Act. The Congressional Budget Office said permanently extending the subsidies, which come in the form of tax credits, would cost $335 billion over the next 10 years. Republicans have balked at the cost. They argue the credits hide the true cost of the health law and subsidize Americans who don't need the help. The Republican Study Committee's 2025 fiscal budget says the subsidies 'only perpetuate a never-ending cycle of rising premiums and federal bailouts — with taxpayers forced to foot the bill.'
