Nevada Democrats push ahead, but ACA tax credit extension unlikely to pass

Despite Republicans in the House defecting to pass subsidy extensions, healthcare credit renewal and relief may be dead in the water.

The Breaking the Gridlock Act, which would extend the Affordable Care Act (ACA) tax credits for three years, passed the US House last week with the help of 17 Republican members of Congress.  

Every House Democrat backed the measure, including Nevada Congressional Representatives Steven Horsford, Dina Titus, and Susie Lee. It’s unlikely to pass the Republican-controlled US Senate, but if it did, the nonpartisan Congressional Budget Office estimated that 8 million more people would be covered by health insurance by 2029. 

“Republicans found the time and money to give billionaires massive tax breaks,” Horsford wrote in an email. “And we can and should find the time and money to give Nevada families the tax relief they need to afford health care.”

Though 17 House Republicans voted in favor of the bill, the party still overwhelmingly rejected the proposal, with top leaders like House Speaker Mike Johnson (R-LA) calling the health insurance subsidies “a magnet for fraud,” citing multimillion-dollar scandals in Minnesota. 

“Minnesota’s abundance of recent fraud scandals demonstrates exactly why that’s a mistake,” Johnson said of insurance subsidies on his website. “Democrats want to extend and expand this program as-is to continue hiding the true cost of Obamacare.”

As a result of the situation, health insurance for 95,000 Nevadans is at risk, with premiums rising sharply. Some clients on the individual market have already reported $147 monthly increases, reports The Nevada Independent. The timeliness is stark, as open enrollment for 2026 coverage in Nevada ends on Jan. 15.

Democrats have called on the US Senate to immediately hold a vote on extending ACA tax credits, despite the low probability that it will pass, as 13 Republicans and all Democrats are needed to vote in favor. 

“Republicans in the Senate could pass this legislation and prevent the discontinuation of these credits,” Lee wrote in an email. “It is unlikely they will do so, and instead, we are involved in bipartisan discussions regarding reforms that both continue these important tax credits and rein in fraud.”

US Sen. Catherine Cortez Masto (D-NV) said she supports the extension but is pushing for a long-term, bipartisan solution.

“While this extension is critical to ensure millions of Americans don’t lose health care coverage or see their premiums rise dramatically—Senator Cortez Masto will continue working with her colleagues on both sides of the aisle to reach a more permanent solution,” wrote a spokesperson for Cortez Masto in an email.

The heated ACA subsidy debate is what led to a 43-day government shutdown at the end of last year, the longest in US history, due to Republicans’ refusal to negotiate with Democrats on the renewal of health care subsidies ahead of their December expiration date.