Monday, January 12, 2026

Donald Trump Threatens To Veto Obamacare Subsidies Bill


Published Jan 12, 2026
By Jasmine Laws
US News Reporter
Newsweek is a Trust Project member

President Donald Trump has said he "might" veto a bill that passed through the House on Thursday that would extend Affordable Care Act (ACA) subsidies.

Speaking to reporters on board Air Force One on Sunday en route to Joint Base Andrews, Maryland, the president was asked if he would veto the bill if it passed through the Senate, to which Trump responded: "I might."

Newsweek has contacted the White House outside of regular working hours via email for comment.

Why It Matters


The ACA enhanced tax credits, which gave millions more Americans access to ACA-compliant health plans on the Marketplace, have been a particularly divisive issue in Congress.

The subsidies sat at the forefront of debate between the parties as they tried to pass stopgap funding legislation during the shutdown, and they continue to be an issue that lawmakers are divided over.

What To Know


Trump has previously appeared to advocate for replacing the ACA subsidies with health savings accounts, which would enable Americans to manage their insurance themselves.

Health savings accounts act like a flexible savings account used to cover medical costs as and when an individual decides to take out the money.

Individuals and their employers can make tax-free deposits into the accounts, as long as the person is also covered by a health insurer with a high deductible, and after the person turns 65, they can withdraw the money for non-medical related costs, although this is then subject to usual income taxes.

Trump's sweeping tax package, the 'One Big Beautiful Bill' expanded access to these accounts, meaning millions more Americans were able to use them, and this seemed to be a signal by the administration that it wanted to shift away from the ACA subsidies, which it chose not to renew, toward the accounts.

However, Democrats have said these accounts would not provide Americans with enough financial support to navigate the country's soaring health care costs.

It is also not just Democrats who support the three-year extension of the ACA subsidies, as 17 Republicans voted in favor of the House bill on Thursday.

The vote was enforced by a petition launched by Democrats after GOP leaders blocked a debate on renewing the subsidies. If a discharge bill gets 218 signatures, it means that it can bypass leadership and force a vote.

What People Are Saying


U.S. Senator for Texas Ted Cruz wrote in a post on X on Sunday evening: "Obamacare has been a failure that’s enriched insurance providers at the expense of patients. There are many reforms we can and should make to our healthcare system. Extending the ACA’s subsidies isn’t one of them, and doing so only further perpetuates Obamacare’s damage to American consumers."

U.S. Representative for Ohio Mike Carey, one of the Republicans who voted in favor of the House bill, shared a statement on X on Thursday: "I voted today to extend the enhanced tax credits for ACA plans. The cost of health care is still too high because of the failed Obamacare policies that removed choice and raised premiums with punishing government mandates on our working families. Close to 45,000 Ohioans in our district currently have these plans, and I want to make sure that they do no lose access to a plan that they have relied on as Congress continues addressing the high cost of health care."

Nancy Pelosi, the 52nd speaker of the U.S. House of Representatives, wrote in a post on X on Thursday: "Trump’s stinking ugly, lousy rotten bill takes away Medicare, Medicaid and ACA coverage for millions of patients — all to give tax breaks to the wealthiest Americans. Republicans must join Democrats to restore the ACA subsidies and lower costs."

What Happens Next


The Senate is now set to vote on the bill—the date of which is not yet clear—but reports suggest that it is unlikely the Senate will vote in favor of it, as in December, the Senate voted against a similar extension of the subsidies.

Although, there is now a bipartisan group of lawmakers trying to find a compromise deal on the enhanced tax credits, according to various reports.

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