HOUSTON – As the clock struck midnight ushering in 2026, millions of Americans faced soaring health insurance costs after critical Affordable Care Act subsidies expired.
The enhanced federal tax credits that helped lower premiums were a key issue during the 43-day federal government shutdown last October. The shutdown resulted from a political standoff between Democrats and Republicans over funding and policy priorities.
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When the shutdown ended, no agreement was reached to extend the subsidies beyond December 31, 2025.
James Bonner, 64, of Houston’s Sunnyside neighborhood, relies on his ACA health insurance to survive. He is awaiting a double lung transplant.
Before the subsidies expired, Bonner paid roughly $9 a month for his coverage, he told KPRC 2’s Gage Goulding.
Now, he has received a notice that his premium will jump to about $135, a 1,400% increase.
That increase is unaffordable for Bonner, a former NASA employee who worked on projects like the Hubble Space Telescope.
Living in a low-income neighborhood and relying solely on his Social Security check, which is just over $1,000 a month, Bonner faces the risk of losing his insurance and potentially his life-saving transplant.
His story, albeit much more severe, is one that is carbon copied to the lives of millions of Americans from coast to coast.
An analysis by the Urban Institute and Commonwealth Fund last September projected that the expiration of these subsidies could lead about 4.8 million Americans to drop their coverage in 2026.
Democratic Congressman Al Green, who represents Texas’ 9th District, has vowed to help Bonner and millions of others struggling with higher healthcare costs.
The House of Representatives is set to vote on a bill that would extend the ACA subsidies for another three years. The bill gained momentum after four centrist Republicans broke party lines to support it, but still faces a long, rough road ahead.
Congress returned for the second session of the 119th Congress on Jan. 5, 2026.