WASHINGTON, D.C. – Today, Congresswoman Budzinski (IL-13) led 108 House Democrats in a letter to Speaker Mike Johnson calling out the upcoming harm small businesses will face should the Affordable Care Act’s (ACA) enhanced premium tax credits expire.
The lawmakers noted that small business owners, their employees, and self-employed Americans are disproportionately represented in the ACA marketplace. Although they make up only 16 percent of the workforce under the age of 65, they account for nearly half of marketplace enrollees. Furthermore, according to the U.S. Department of the Treasury, 82 percent of small business owners and self-employed individuals rely on the enhanced premium tax credits to afford their ACA Marketplace coverage.
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“If the ACA’s enhanced premium tax credits are not immediately extended, families and small businesses will begin to feel the impact as soon as November 1st, when Open Enrollment begins and Marketplace plans reflect steep premium hikes in 2026,” the Members wrote. “Premiums are currently projected to increase by about 114% starting in 2026. For many families and small businesses, this is money they do not have.”
Budzinski and her colleagues highlighted that allowing the ACA enhanced premium tax credits to expire would force small business owners to make difficult decisions about their healthcare including paying hundreds more per month, dropping their coverage entirely, or even having to close their business in the face of this financial pressure.
“By making insurance more expensive for small business owners and employees, Republicans are not only squeezing family budgets – they are stifling American innovation and undermining the economic growth that small businesses drive,” the lawmakers continued.
