Senate Democrats' Plan to Extend ACA Subsidies Criticized for $300 Billion Deficit Hit

Breaking News: Senate Democrats' Plan to Extend ACA Subsidies Criticized for Adding to National Debt The Committee for a Responsible Federal Budget (CRFB) has sounded the alarm on a Senate Democrats' plan to extend enhanced Affordable Care Act (ACA) subsidies, warning that it would add nearly $300 billion to the national debt over three years. The proposal, backed by members of the Senate Democratic caucus, aims to fully extend the subsidies from 2026 through 2028, with no additional income limits on who can qualify. According to CRFB, the plan would increase the national debt by $290 billion over the next three years, exacerbating the country's already substantial debt burden. The nonpartisan watchdog group estimates that the national debt is currently as large as the economy, with annual interest payments exceeding $1 trillion. Senate Democrats are racing to pass the plan before enhanced ACA subsidies expire within days, citing concerns that spiking health insurance premiums would harm millions of Americans. However, CRFB President Maya MacGuineas responded with skepticism, stating that adding hundreds of billions to the debt is "absurd" given the country's current fiscal situation. The proposal has sparked debate among lawmakers and experts, with some arguing that the subsidies are necessary to protect vulnerable populations, while others contend that the plan is fiscally irresponsible. The Senate is expected to take up the proposal in the coming days, with a vote likely to occur before the end of the year. The ACA subsidies were originally boosted during the pandemic and later renewed to lower premiums and prevent coverage losses for middle and lower-income households purchasing insurance on the ACA exchanges. The plan to extend the subsidies would provide relief to millions of Americans, but at a significant cost to the national debt. As lawmakers weigh the proposal, they must balance the need to protect vulnerable populations with the need to manage the country's fiscal responsibilities.