New York, NY – With a potential government shutdown already straining public confidence, New York’s top Democratic leaders are calling on Congress to protect federal healthcare tax credits that millions of Americans rely on to afford coverage.
On the morning of October 5, House Democratic Leader Hakeem Jeffries (D-Brooklyn), Rep. Nydia Velázquez (D-NY), and several members of the New York Congressional Delegation gathered at City Hall to demand an extension of the Affordable Care Act (ACA) tax credits, also known as Obamacare subsidies.
“ACA tax credits help millions of Americans afford health care,” the lawmakers stated in a joint press release. “Without congressional action, thousands of families in New York will face steep premium increases, and many could lose coverage altogether.”
Healthcare and the Shutdown Standoff
Appearing Sunday on NBC’s Meet the Press, Jeffries emphasized that Democrats are seeking bipartisan cooperation to reopen the government and pass a responsible spending bill. But, he warned, failure to extend healthcare subsidies could deepen what he called a “Republican healthcare crisis” affecting working-class families.
“Our goal is to meet the needs of the American people,” Jeffries said. “We’re standing up for the healthcare of hardworking taxpayers, middle-class Americans, and everyday families who are already struggling with costs.”
Partisan Divide Over Health Policy
Republicans have accused Democrats of attempting to expand healthcare benefits to undocumented immigrants, a claim that has been repeatedly debunked. “Democrats are trying to give healthcare benefits to illegal aliens,” said Vice President JD Vance in a recent statement.
Jeffries dismissed the accusation, saying, “Republicans are losing in the court of public opinion.” He stressed that the Democratic proposal does not alter existing federal law, which prohibits taxpayer funding for undocumented immigrants’ healthcare.
Instead, he argued, the focus is on protecting the ACA’s affordability measures for millions of legal U.S. residents. “If Republicans continue to block an extension of these credits,” Jeffries said, “tens of millions of Americans will see their premiums, co-pays, and deductibles skyrocket. Insurance companies are already sending notices warning of higher costs.”
Economic Stakes for Working Families
If Congress allows the tax credits to expire, many middle-income households could face devastating increases in healthcare expenses. Jeffries cited an example: a married couple earning $88,000 per year currently pays about $8,000 annually for insurance under the ACA. Without the credits, that cost could triple.
“The math is simple and painful,” Jeffries said. “Families will pay thousands more unless we act.”
Political Tensions Mount
Republicans argue there is still time to negotiate since the tax credits are set to expire on December 31. Yet, Democrats warn that the delay itself is already causing damage. Insurance companies are preparing for open enrollment on November 1, and uncertainty over the ACA’s future is prompting insurers to raise rates in anticipation.
Meanwhile, White House spokesperson Kush Desai accused Democrats of exacerbating the shutdown, even though Republicans currently hold majorities in both chambers of Congress. The shutdown was triggered after a stopgap funding bill in the Senate failed to reach the 60-vote threshold required to break a filibuster.
According to The Hill, insurers are bracing for potential fallout, with some warning that premiums could more than double if the ACA tax credits lapse.
