On Saturday, President Donald Trump proposed that Republican senators redirect federal funds currently allocated for health insurance subsidies under the Affordable Care Act (ACA) to direct payments for individuals. This initiative emerges amid the ongoing U.S. government shutdown and reflects a potential compromise to address the associated issues. Trump expressed his views on social media, suggesting that the significant amounts being sent to insurance companies to support ACA should instead be given directly to citizens for purchasing superior healthcare. He referred to ACA as “the worst Healthcare anywhere in the World” without providing further specifics on his proposal.
As the Senate reconvened after rejecting a bill aimed at resuming paychecks for federal workers affected by the 39-day shutdown, lawmakers remained divided on how to proceed. Democrats sought a funding bill that would extend healthcare subsidies due to expire for millions, while Republicans argued for a clean funding bill first, without additional provisions.
The shutdown has significantly impacted federal employees, halted food aid, and disrupted airline travel. In support of Trump’s idea, Senators James Lankford and Lindsey Graham highlighted the need to shift funds directly to the public rather than insurance companies. Lankford criticized ACA subsidies as benefiting a limited group rather than the general population.
The ACA allows individuals to purchase health insurance policies but primarily serves those without employer coverage or government programs like Medicare and Medicaid. Previously, Trump had supported direct payments to taxpayers during his first term and had considered using saved government funds or tariff revenues for similar purposes.
With information from Reuters
