Some states expand ACA subsidies as federal tax credits lapse
Updated on: January 26, 2026 / 6:04 PM EST / CBS News
TL;DR
- Six states (California, Colorado, Connecticut, Maryland, Massachusetts, and New Mexico) are increasing state-funded ACA subsidies for 2026.
- This action is a response to the expiration of federal tax credits at the end of last year, which has caused premium increases for some ACA enrollees.
- These states have modified or enhanced their programs to directly address the reduction in federal premium subsidies.
- A total of 10 states offer subsidies in addition to federal ACA tax credits.
- New Mexico is fully offsetting the loss of federal tax credits for all its residents and saw a 17% increase in enrollment for 2026.
- California is offsetting the loss of premium tax credits for enrollees earning up to 150% of the federal poverty level.
- Colorado is offering ACA participants with incomes up to 400% of the federal poverty level a monthly subsidy.
- States that provide their own subsidies must operate their own health insurance exchanges outside of HealthCare.gov.
- Twenty states have their own exchanges, mostly in states controlled by Democrats.
- The Trump administration is also exploring ways to mitigate healthcare costs, with President Trump announcing a plan to send money directly to Americans for healthcare purchases.