Health Subsidies at Risk: Black Californians Brace for Potential Insurance Increases Amid Federal Budget Deadlock

As Congress rushes to avert a government shutdown, a pivotal concern is the preservation of federal subsidies that render health insurance affordable for millions of Americans. Should lawmakers fail to enact a budget or a temporary solution, termed a Continuing Resolution (CR), by September 30, enhanced premium tax credits (EPTCs) under the Affordable Care Act will vanish at year’s end. A CR is a provisional measure that maintains current federal funding levels while broader budget discussions are ongoing. If unaddressed, millions may find themselves without health coverage due to rising costs. In California, families—including African American households experiencing a 53% enrollment surge in Covered California from 2020-2025—would face hefty premium increases, with some Black participants potentially seeing up to a 67% rise. Chelsea Baker, a small business owner reliant on insurance for critical health treatments, emphasized the dire financial decisions affecting families. The expiration of subsidies could force 4.2 million people to lose coverage, with remaining premiums anticipated to escalate by 75% nationwide. State leaders are taking preemptive actions, but the looming federal funding gap remains a significant concern.