Leaders from 35 conservative organizations are urging President Trump to allow Affordable Care Act subsidies to expire at the end of the year rather than extending or making them permanent.
The letter comes as Democrats in Congress are calling on Republicans to meet their demands on health care as a condition of funding the government beyond the Sept. 30 shutdown deadline. At the top of their list of asks is extending the ACA subsidies enacted during the COVID-19 pandemic that expire at the end of the year. Democrats have rejected a Republican-crafted seven-week stopgap as they push for concessions on health care.
“We urge your Administration to continue fighting the radical Left’s agenda: specifically, by allowing the Biden COVID credits to expire,” the leaders of the conservative organizations wrote in the letter sent to Trump on Friday and first shared with The Hill.
The signatories encompass leaders from organizations aligned with free-market economic philosophy, including Grover Norquist, president of Americans for Tax Reform; David McIntosh, president of Club For Growth; and Brent Gardner, chief Government Affairs officer at Americans for Prosperity.
They praised Trump for “rejecting the ‘unserious and ridiculous demands’ made by Democrats” and agreed that “at this point, no meeting with Democrat congressional leaders could possibly be productive,” in reference to Trump canceling a meeting he had scheduled with House Minority Leader Hakeem Jeffries (D-N.Y.) and Senate Minority Leader Chuck Schumer (D-N.Y.).
The letter characterized extension of the tax credits as a “preposterous” demand.
“Making the Biden COVID credits permanent would be tremendously expensive, increase premiums in the long-term, and encourage widespread fraud,” the conservative leaders said.
It argued that the COVID-era credits were “always supposed to be temporary,” that they raise premiums, and that they are “bankrupting our country.” It asserts, citing an estimate from the Paragon Health Institute, that millions of those benefiting from the credits have improperly qualified.
“Knowing your Administration’s dedication to reining in wasteful spending and fraud, we urge you to let the Biden COVID credits expire, not extend them or — worse — make them permanent,” the letter said.
Senate Majority Leader John Thune (R-S.D.) told CNN on Wednesday that Republicans are open to negotiating on the ACA tax credits, but not as a condition of keeping the government open.
“This is a program that needs reform, but I think everybody is willing to sit down and talk about how to make that happen in a context where it should be discussed, not as a hostage to keep the government open,” Thune said. “This is not the time, the place to do this.”
Some Republicans in Congress are supportive of extending the tax credits, with Rep. Jen Kiggans (R-Va.) leading a bill to extend the current subsidies for one year, until the end of 2026, to give lawmakers time to find a “reasonable approach.”
Jeffries said in a press conference on Wednesday that any deal with Republicans concerning health care and government funding would have to be “ironclad and in legislation.”
