Targeted measure to protect millions of families from coverage loss and premium hikes 

WASHINGTON, DC – Today, Congressman Brian Fitzpatrick (PA-1), Chairman of the Working Family Tax Team, joined his fellow Problem Solvers Caucus Co-Chair Tom Suozzi (D-NY) and a bipartisan coalition of lawmakers to introduce the Premium Tax Credit Extension Act. The bill aims to prevent millions of Americans from losing health insurance coverage when temporary federal subsidies expire at the end of the year.

Under current law, the enhanced Premium Tax Credit, originally established by the Affordable Care Act (ACA), expanded under the American Rescue Plan Act (ARPA), and extended through the Inflation Reduction Act (IRA), is set to expire at the end of this year. According to the nonpartisan Congressional Budget Office, allowing the current subsidies to lapse could result in more than 4 million Americans losing coverage.

Because of this income-based premium tax credit, a record 24.2 million people signed up for coverage during open enrollment in 2025. In fact, middle-income enrollees increased from 140,000 in 2021 to 900,000 in 2024. Without this extension, millions of self-employed workers and small business owners will see their premiums increase by more than $11,000 a year. 

“We don’t need permanent pandemic-era policy—but we do need a responsible off-ramp,” said Fitzpatrick. “Letting these subsidies expire without a plan would put health coverage out of reach for millions of families in my community and across the country. This bipartisan, targeted extension will prevent disruption, protect access, and give Congress the time needed to deliver real, lasting reform. I’ve fought to make health care more affordable and accountable for the people I serve—and this is a necessary step to keep coverage within reach for those who need it most.”

“New Yorkers, including 17,000 of my constituents, rely on the ACA’s enhanced premium tax credits to afford their health insurance,” said Suozzi. At a time when the cost of living is skyrocketing and Americans are concerned about being able to afford basic necessities, we cannot allow them to face thousands of dollars of health insurance premium increases if these tax credits expire. This is too important to wait until the last second to think about solutions. I will always work across the aisle to find a middle ground that solves the problems Americans are worried about.”

Key Provisions of the Premium Tax Credit Extension Act

• Prevents steep premium hikes for millions of Americans starting in 2026
• Extends enhanced premium tax credits through 2026.
• Maintains expanded eligibility for families earning above 400% of the federal poverty line.
• Delivers market stability for insurers, states, and enrollees while long-term reforms advance
• Applies to taxable years beginning after December 31, 2025.

The Premium Tax Credit Extension Act ensures a stable transition in the individual marketplace,  protecting families from a sudden cost shock while Congress works toward bipartisan reforms that prioritize affordability, competition, and long-term sustainability.

Read the bill here. 

Read the one-pager here. 

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