WASHINGTON – Congressman David Valadao (CA-22) joined Congresswoman Jen Kiggans (VA-02), Congressman Tom Suozzi (NY-03), and a delegation of 11 members in introducing the Premium Tax Credit Extension Act. The Enhanced Premium Tax Credit is set to expire at the end of 2025, and this bipartisan bill would extend it for one year to protect families, seniors, and small business owners across the country from massive healthcare premium increases.

Thousands of residents in California’s 22nd Congressional District rely on the Enhanced Premium Tax Credit to afford their monthly health insurance premiums. If this credit expires, a family of four in CA-22 earning $64,000 per year will see a 292% increase in their annual premiums. This legislation is a critical first step in working toward a more permanent solution to address the enhanced marketplace subsidies.

“Too many hardworking families across California are already struggling with healthcare costs, and the last thing they need is a sudden spike in their health insurance premiums,” said Congressman Valadao. “By introducing a clean, one-year extension for the Enhanced Premium Tax Credit, we can protect families from these higher costs while Congress works toward a more permanent solution.”

“As a nurse practitioner, military spouse, and Mom, I understand firsthand how critical affordable health care is for working families,” said Congresswoman Kiggans. “In Congress, I’ve made it my mission to ensure Virginians—especially our seniors, small business owners, and middle-class families—aren’t blindsided by skyrocketing costs they can’t afford. While the enhanced premium tax credit created during the pandemic was meant to be temporary, we should not let it expire without a plan in place. My legislation will protect hardworking Virginians from facing health insurance bills they can’t afford, thus losing much-needed access to care. We can’t pull the rug out from under hardworking families—we must give Americans more time to plan. This is the last thing Virginians need and it's unacceptable.”

“New Yorkers, including 17,000 of my constituents, rely on the ACA’s enhanced premium tax credits to afford their health insurance,” said Congressman Tom 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.”

Additional co-sponsors include: Reps. Brian Fitzpatrick (PA-01), Jared Golden (ME-02), Jeff Hurd (CO-03), Rob Bresnahan (PA-08), Young Kim (CA-40), Carlos Gimenez (FL-28), Tom Kean (NJ-07), Juan Ciscomani (AZ-06), Mike Lawler (NY-17), Don Davis (NC-01), and Marie Gluesenkamp Perez (WA-03).

Background:

The Premium Tax Credit was created under the Affordable Care Act (ACA) in 2014 to improve the affordability of health insurance purchased through the ACA marketplaces. In 2021, the American Rescue Plan (ARPA) temporarily expanded the credit by removing the income cap and increasing subsidies for eligible households during the COVID-19 pandemic. These enhancements, in effect for 2021 and 2022, reduced premium costs for low-income consumers and also extended eligibility to many middle-income households. Marketplace enrollment increased in California and nationally during this period.

The Enhanced Premium Tax Credit is scheduled to expire at the end of 2025, and if not extended, monthly premiums for marketplace enrollees are expected to rise exponentially. This could reduce coverage rates for enrollees in California and across the nation.