Summary
A disagreement over health policy led to the U.S. government shutdown. Democrats in the Senate did not support a Republican funding proposal because it did not extend special tax credits that help lower the cost of health insurance plans through the Affordable Care Act (ACA). These tax credits are set to expire at the end of the year, affecting millions who rely on ACA plans.
Key Facts
- The federal government shutdown is due to a dispute over health policy costs.
- Enhanced tax credits for ACA premiums expire at the end of the year.
- These credits have made ACA plans more affordable since 2021.
- The Senate Democrats opposed a bill excluding the extension of these credits.
- Enrollment in ACA plans reached a record 24 million people this year.
- Without the tax credit extension, premiums could rise by 114% next year.
- The Congressional Budget Office estimates 4 million people may lose coverage if credits expire.
- Extending the tax credits would cost the government $350 billion over 10 years.
