Governor Kathy Hochul has urged Congress to approve an extension of the Affordable Care Act’s enhanced premium tax credits, which are scheduled to expire at the end of 2025. In a joint letter signed by New York and 17 other states, officials warned that millions could face significantly higher healthcare premiums without these subsidies. More than 140,000 residents in New York depend on the enhanced credits for affordable health coverage, while an additional 1.7 million benefit from the Essential Plan, which offers low or no-cost insurance to working families.
State officials say the extension is especially important as New York prepares for major funding cuts under a recent GOP reconciliation law. This legislation will reduce federal support for the Essential Plan by $7.5 billion each year starting in 2026—over half of its total funding—and force New York to revert the program back to a Basic Health Program. All seven Republican members of Congress from New York supported this budget bill.
“Republicans in Congress just voted to make healthcare more expensive than ever for all New Yorkers,” Governor Hochul said. “I’m proud to stand with Democratic governors across the nation urging Congress to extend these tax credits that hardworking families deserve.”
The enhanced premium tax credits were first expanded under the American Rescue Plan and later extended through the Inflation Reduction Act. They set a maximum benchmark-plan premium at 8.5 percent of household income and increased eligibility beyond previous income limits. As a result, enrollment in ACA Marketplace plans grew from about 11.4 million in 2020 to over 24 million in 2025.
If Congress does not act before the end of next year, state estimates show average premiums could rise nearly 40 percent statewide—about $114 more per month for individuals and $228 more for couples. The Congressional Budget Office projects millions across the country would lose coverage, causing reduced access to care and economic impacts including job losses within healthcare.
Governor Hochul stated that failure by Congressional Republicans to extend these tax credits would reverse gains made over fifteen years in reducing New York’s uninsured rate.
