How Affordable Care Act subsidies became a sticking point in the government shutdown

How Affordable Care Act subsidies became a sticking point in the government shutdown
How Affordable Care Act subsidies became a sticking point in the government shutdown
Tom Williams/CQ-Roll Call, Inc via Getty Images

(WASHINGTON) — As the federal government shutdown enters its tenth day, one major health care issue has continued to be a sticking point: insurance subsidies.

The Affordable Care Act (ACA) subsidies, or premium tax credits, help lower or eliminate the out-of-pocket cost of monthly premiums for those who purchase insurance through the health insurance marketplace.

Eligibility for the subsidies can include factors such as household income and geographic location.

The subsidies were part of the original Affordable Care Act passed during the Obama administration and were enhanced during the COVID-19 pandemic to increase the amount of financial assistance to those who were already eligible and to expand eligibility to more people. They are set to expire at the end of the year.

Republicans have said the expansions from the pandemic era went too far and have tried to persuade Democrats to fund a temporary spending bill that doesn’t address the expiring ACA subsidies, with promises of discussing ways to continue the subsidies later.

House Speaker Mike Johnson, R-La., referred to the Dec. 31 deadline to extend subsidies as being far away.

“That’s a Dec. 31 issue,” he said during a news conference earlier this week. “There are lots of conversations and deliberations and discussions right now, even bipartisan amongst members about necessary changes that would have to be made, pretty dramatic changes to even have that considered on the floor. But look, I’m not going to forecast the outcome of that.”

However, Democrats say that with open enrollment for ACA plans beginning Nov. 1, the subsidies not being approved could be detrimental for millions of American families.

“The Democrats have said that their position on getting out of the shutdown period is that they would want to both extend and make permanent these enhanced marketplace premium tax credits,” Melinda Buntin, a professor at Johns Hopkins Bloomberg School of Public Health and Johns Hopkins Carey Business School, told ABC News.

“The thing at the very top of the list is these subsidies because they are so salient and they will directly affect the pocketbooks of so many millions of Americans,” Buntin said.

Buntin said that if open enrollment begins and these subsidies are not approved and loaded into the enrollment systems, people are likely to see their premiums go up.

Estimates from the Congressional Budget Office suggest that, without an extension, gross benchmark premiums could increase by 4.3% in 2026 and by 7.7% in 2027 for those on marketplace plans.

A KFF analysis last month found that people who buy insurance from the marketplace, and receive financial assistance, would see their premiums rise by about 114% on average, from $888 in 2025 to $1,904 in 2026.

There is broad support for the tax credits. A recent KFF poll, which was fielded just before the government shut down on Oct. 1, found that 78% of Americans support extending the enhanced tax credits, including more than half of Republicans and of “Make America Great Again” supporters.

House Minority Leader Hakeem Jeffries expressed on Thursday the need to extend tax credits, stating, “[U]nless we extend the Affordable Care Act tax credits, tens of millions of Americans are about to experience dramatically increased premiums, co-pays and deductibles by thousands of dollars per year.”

Buntin says this could affect many Americans, but particularly those who live in states where Medicaid was not expanded and buying insurance on the marketplace is their only option.

Naomi Zewde, a fellow at the UCLA Center for Health Policy Research and assistant professor of health policy and management at the UCLA Fielding School of Public Health, told ABC News that working low-income families and adults will be affected if the ACA subsidies are not approved.

“Mainly those who don’t get insurance through their job, who make too much for Medicaid but not enough to pay [about] $600-plus per month for a plan with a two-to-three-thousand-dollar deductible,” she said.

However, James Blumstein, university distinguished professor of constitutional law and health law and policy at Vanderbilt University School of Law, told ABC News that even if the subsidies lapse and the Nov. 1 deadline arrives, a deal could be worked out to retroactively fix the issue.

He added that he believes congressional Democrats and Republicans could also come up with a deal that saves the ACA subsidies but doesn’t keep the full expansions that were offered during the pandemic.

“I think the leverage for the Democrats will diminish,” he said. “Republicans have passed a continuing resolution so that this issue is going to come back up five or six weeks again.”

Blumstein continued, “Democrats will have leverage again in five or six weeks and I think that whether this goes into the period of new enrollment or not, that can all be fixed in the deal. In other words, if the time lapses that can be overcome by the subsidies coming a little bit later.”

Earlier this week, President Donald Trump indicated that he was negotiating with Democrats on health care policy and that he was open to making a deal on health care subsidies in an attempt to reopen the government.

“We have a negotiation going on with the Democrats that could lead to good things, and I’m talking about good things with regard to health care,” Trump told reporters in the Oval Office.

“If we made the right deal, I’d make a deal. Sure,” Trump said in reference to making a deal to approve ACA subsidies.

In a statement, Senate Minority Leader Chuck Schumer denied that the White House was negotiating with Democrats.

Trump later walked back his willingness to make a deal, writing on social media that he would work with Democrats as long as the government is reopened first.

Democratic leaders have said they are not willing to vote to reopen the government unless Republicans negotiate on health care demands, while Republicans have signaled unwillingness to negotiate on health care policy unless the government is reopened — an effective stalemate.

“Republicans are saying that we should have what is referred to as a clean bill, just continue the government operations as they were, without extending these subsidies, and then once we’ve got that, then we can come back and we can talk about things like extending the subsidies,” Buntin said. “Democrats are seen so far unwilling to agree to that, which I think represents a sort of breakdown in normal process.”

She continued, “Democrats are seeing a political opening, because there are so many millions of people who depend on these subsidies to be able to afford health insurance, and there’s nothing like a deadline to use to get something you want.”

A spokesperson for the Department of Health and Human Services told ABC News in a statement earlier this week that Democrats are to blame for the shutdown.

“Senate Democrats are choosing to keep the government shut down, putting major health programs at risk. They should do the right thing and vote to reopen the government,” the statement read.

Copyright © 2025, ABC Audio. All rights reserved.

SpaceX tries for 2 successful Starship missions in a row with Monday’s launch

SpaceX tries for 2 successful Starship missions in a row with Monday’s launch
SpaceX tries for 2 successful Starship missions in a row with Monday’s launch
Manuel Mazzanti/NurPhoto via Getty Images

(NEW YORK) — Elon Musk, the founder and CEO of SpaceX, has called “rapidly reusable, reliable rockets” the key to humans becoming a multiplanetary society. And when it comes to his company’s Falcon 9, SpaceX has shown that a rocket can do all those things.

The Falcon 9 has now completed 542 missions, 497 landings and 464 reflights, according to the SpaceX website.

But to reach the Moon and Mars and establish settlements on both, SpaceX will need its larger, more complex and significantly more powerful Starship and its Super Heavy booster to reach Falcon 9’s level of reliability and reusability.

Soon, SpaceX will have the chance to show that Starship’s successful August flight, the first to complete all its primary mission goals, was no fluke.

Barring a delay due to bad weather or mechanical issues, the stainless steel Starship and Super Heavy booster will conduct its 11th flight test on Monday, Oct. 13, at 7:15 p.m. ET, from the company’s Starbase in South Texas. A mission the company hopes will build on the much-needed success of its previous test. SpaceX will be operating Starship autonomously and there will be no astronauts aboard during the flight.

In late August, Starship and its Super Heavy booster successfully reached space on a suborbital trajectory at a near-orbital velocity, deploying a series of Starlink simulators before returning to Earth with such navigational precision that the reentry was captured on a camera attached to a remote buoy in the middle of the Indian Ocean.

“I would give [flight test 10] an A-plus. That was an A-plus performance. The only thing that was a little bit off was that there was some damage in the aft skirt compartment of Starship during the flight, but most of the mission objectives were achieved,” said Olivier de Weck, the Apollo Program Professor of Astronautics and Engineering Systems at MIT and editor-in-chief of the “Journal of Spacecraft and Rockets.” “I don’t think this could have gone much better,” he added.

But now, de Weck says SpaceX needs to demonstrate that it can build on its August success and move the program forward with new mission objectives.

“I think the next step is to actually land the Starship, still not go into orbit and stay over multiple orbits, but actually land and recover the actual Starship,” said de Weck. “Recovery of the Starship, an upright landing, with retro propulsion on a fixed platform, that’s the next step.”

SpaceX is not planning an upright, fixed platform landing for the upcoming 11th flight test. Like the previous mission, the Starship will splash down in the Indian Ocean. The Super Heavy first stage booster, with its 24 Raptor engines, which SpaceX said was previously used during flight test eight, is also scheduled to splash down in the ocean. In several previous missions, it returned to the launch site and was caught by the tower’s mechanical “chopstick” arms.

The development of Starship hasn’t come easily for SpaceX, with several high-profile setbacks along the way. However, despite an explosion on the launch pad during a pre-flight engine test and several explosions and mechanical failures during previous test flights, Musk has long maintained that learning from failures is an integral part of SpaceX’s engineering process.

“I’m not surprised where the program is. It’s moving forward through the usual SpaceX iterative development model, and not surprisingly, it’s behind SpaceX’s ambitious schedule projections,” said Greg Autry, associate provost for space commercialization and strategy at the University of Central Florida. “But that wouldn’t make it any different than almost everything else that they’ve done in the past, other than that the scale of this is so large,” he added.

Autry is President Donald Trump’s nominee to be the chief financial officer of NASA.

Autry says he’s confident that SpaceX is headed in the right direction and said that Elon Musk and his companies tend to prove their critics wrong in the long run, delivering results even if it takes longer than anticipated.

“About ten years ago, Elon Musk promised me I was going to have a self-driving car shortly, and a lot of people said that was completely crazy. It wasn’t shortly, but I now have a self-driving car. I literally get in my car, push the button, and fifty miles later, I arrive at work. It is amazing. He delivers eventually,” Autry said.

Experts say that making the next generation of U.S.-designed and built rockets and spacecraft work is critical to achieving NASA’s goals of not only returning to the Moon but building a permanent lunar settlement and doing it before the Chinese.

During a late September ceremony at the Johnson Space Center announcing the new class of NASA astronauts, Acting NASA Administrator and Secretary of Transportation Sean Duffy spoke about the competition for space dominance.

“Now some are challenging our leadership in space, say, like the Chinese, and I’ll just tell you this, I’ll be damned if the Chinese beat NASA or beat America back to the Moon,” said Duffy. “We are going to win. We love challenges. We love competition, and we are going to win the second space race back to the Moon,” he added.

Autry, who first wrote about a new space race with China back in 2010, says China is determined to reach the Moon and dominate low-Earth orbit, but he believes the global competition will push American efforts forward.

“There are very credible people saying that they’re about to eclipse us in the next five years. I think that’s great for the prospect of competition that spurs us to work harder and take our role more seriously, and frankly to put funding into programs that we badly, badly need to fund,” said Autry.

Autry says that today’s space race should be compared to the “Age of Exploration” in the 15th and 16th centuries. He points out that while China had “an ambitious sailing-exploration program” in the early 1400s, European countries overtook the Chinese when the Europeans accelerated their global exploration efforts later in the century, at a time when China was pulling back.

“We are at that same moment in time right now. The countries that aggressively pursue going to the Moon and using the assets of space will dominate human history for the next several hundred years,” Autry said.

Autry believes that the billions of dollars being spent by companies like SpaceX and the federal government to support space exploration, return to the Moon and potentially get to Mars is money well spent.

“The countries that choose to take advantage of space resources will be wealthy, prosperous and happier than the countries that don’t. We have plenty of history to show that,” Autry said.

Autry says you just have to look at the first space program to see the benefits of this kind of investment.

“We would not have the computing environment, AI, the internet, solar power, fuel cells, and a variety of technologies at the level they are now if we had not made those investments that drove so much effort into engineering development and STEM education. It created the boom we’ve experienced since the second half of the 20th century,” he added.

Copyright © 2025, ABC Audio. All rights reserved.

Sleeping with Sirens drops off When We Were Young lineup

Sleeping with Sirens drops off When We Were Young lineup
Sleeping with Sirens drops off When We Were Young lineup
Vocalist Kellin Quinn of Sleeping With Sirens performs on stage at The Observatory North Park on August 05, 2022 in San Diego, California. (Daniel Knighton/Getty Images)

Sleeping with Sirens will no longer be playing the 2025 When We Were Young festival.

The festival has announced in a Facebook post that Kellin Quinn and company have dropped off the bill “due to reasons beyond our control.”

Sleeping with Sirens announced earlier in October that their scheduled run of headlining dates had been canceled due to Quinn’s wife dealing with health issues.

“My place is at home until we can solve this and she is recovered,” Quinn said at the time. “I love you all very much and thank you for understanding.”

When We Were Young 2025 takes place Oct. 18-19 in Las Vegas. The bill is headlined by blink-182 and the reformed Panic! at the Disco.

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Listen to new music from Yellowcard, FINNEAS, Of Monsters and Men & Oliver Tree

Listen to new music from Yellowcard, FINNEAS, Of Monsters and Men & Oliver Tree
Listen to new music from Yellowcard, FINNEAS, Of Monsters and Men & Oliver Tree
Yellowcard ‘Better Days’ album cover. (Better Noise Music)

Here are some of the new songs from the alternative world released on this New Music Friday:

Yellowcard‘s comeback album Better Days has arrived, marking the “Ocean Avenue” outfit’s first full-length effort in nine years. Along with the lead single and title track, Better Days includes a collaboration with Avril Lavigne called “You Broke Me Too.”

FINNEAS has released a song called “Palomino,” recorded for the soundtrack to the second season of the Netflix series Nobody Wants This. The soundtrack, due out Oct. 23, also features Portugal. The Man, Role Model and Royel Otis.

Of Monsters and Men goes the distance with “Fruit Bat,” an eight-minute track off the band’s upcoming album, All Is Love and Pain in the Mouse Parade. The record, which also includes the single “Ordinary Creature,” drops Oct. 17.

Oliver Tree returns with a new single called “Superhero,” marking his first official release in two years. It’s the lead single off his upcoming album, Love You Madly, Hate You Badly, due out in 2026.

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The Black Crowes release ‘Exit’ from upcoming ‘Amorica’ super-deluxe box set

The Black Crowes release ‘Exit’ from upcoming ‘Amorica’ super-deluxe box set
The Black Crowes release ‘Exit’ from upcoming ‘Amorica’ super-deluxe box set
(L-R) Chris Robinson and Rich Robinson of The Black Crowes perform onstage during the FIREAID Benefit Concert for California Fire Relief at The Kia Forum on January 30, 2025 in Inglewood, California. (Photo by Scott Dudelson/Getty Images for FIREAID)

The Black Crowes have released a new track from the upcoming super-deluxe edition of their third studio album, 1994’s Amorica.

The latest is the track “Exit,” which is part of the set’s The Marie Laveau Sessions. It features seven songs Chris Robinson and Rich Robinson worked on during a soundcheck on their High As The Moon tour and then recorded in New Orleans on a day off from the trek.

“Chris and I wrote this song on the first half of the Southern Harmony tour,” Rich explains. “It was the first song we wrote leading up to Amorica. It’s such a powerful song and a snapshot into the band which was firing on all cylinders.”

“Exit” is available now via digital outlets.

In addition to The Marie Laveau Sessions, the Amorica set features new mixes of the original album, plus a whole lot of bonus material.

Extras include Tallest, nine newly mixed songs recorded during the sessions for Tall, an unreleased album the band worked on before Amorica but was scrapped by the brothers. The set also includes four recordings from a live broadcast from AIR Studios in London.

The Amorica super-deluxe box set will be released Nov. 14 as a five-LP or three-CD set. There will also be two-LP and one-CD editions.

All formats are available for preorder now.

Copyright © 2025, ABC Audio. All rights reserved.

Mobb Deep releases first album since Prodigy’s 2017 death

Mobb Deep releases first album since Prodigy’s 2017 death
Mobb Deep releases first album since Prodigy’s 2017 death
Havoc and Nas attend The Infamous Mobb Deep “Infinite” Album Celebration on October 09, 2025 in New York City. (Photo by Johnny Nunez/WireImage)

Mobb Deep‘s talent and impact on hip-hop culture is Infinite, a point proved on their brand-new album. It’s their first since member Prodigy passed in 2017 and the latest in Mass Appeal’s celebratory Legend Has It series.

The album bridges the past and present with features from Raekwon, Ghostface Killah and H.E.R., as well as Nas and Jorja Smith, who are featured on lead single “Down For You” and in its accompanying video.

The Alchemist produced the project alongside Mobb Deep’s very own Havoc, who also went through the vault and selected the best Prodigy lyrics for each song.

“When I was picking Prodigy’s verses, I felt like a beggar,” he shares in a press release. “To me, there is no greater MC, and I am blessed to have been his partner.”

Infinite arrives as Mobb Deep celebrates the 10th anniversary of their second studio album, The Infamous. 

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Nashville Notes: Mr. Top’s ‘Rocky Top,’ ERNEST sings Toby Keith and more

Nashville Notes: Mr. Top’s ‘Rocky Top,’ ERNEST sings Toby Keith and more
Nashville Notes: Mr. Top’s ‘Rocky Top,’ ERNEST sings Toby Keith and more

Zach Top knows how to get a crowd on his side. When he performed at Thompson-Boling arena in Knoxville, Tennessee, on Oct. 9, he made sure to play “Rocky Top,” the classic bluegrass tune that for decades has been the go-to song for the University of Tennessee’s Volunteers. Of course, the fans went nuts and sang along at the top of their lungs.

ERNEST has teamed up with Apple Music’s Lost & Found campaign — which pairs artists with unreleased songs — to cut a long lost song by the late Toby Keith. Called “End of the Night,” it was written in 2015 by Toby, David Lee Murphy and Bobby Pinson, but was never released. On Apple Music, you can listen to Toby’s original demo of the song, and ERNEST’s take on it. “We live in the greatest city for songwriting of all time, so there are an endless amount of songs,” ERNEST says. “Every now and then, you get to pull a little diamond out of there and a little piece of history, and this is no exception.”

Vince Gill is marking the 50th anniversary of his music career by curating a series of EPs that he’s dubbed 50 Years from Home. The first one, I Gave You Everything I Had, is coming Oct. 17. It includes six brand-new songs, and a version of “Go Rest High on That Mountain,” which features a new third verse.

Copyright © 2025, ABC Audio. All rights reserved.

Trump admin touts new partner funding for Rohingya refugees amid backlash over aid cuts

Trump admin touts new partner funding for Rohingya refugees amid backlash over aid cuts
Trump admin touts new partner funding for Rohingya refugees amid backlash over aid cuts
Workers describe the housing the Bangladesh government is building for thousands of Rohingya refugees. ABC

(WASHINGTON) — The Trump administration is asserting that it has secured substantial financial commitments for the Rohingya refugees living in Bangladesh from partner nations as reports claim that U.S. foreign aid cutbacks have worsened the crisis facing the persecuted group, according to a State Department document obtained exclusively by ABC News.

Per the document, the State Department says it has secured $64.6 million in aid commitments from partner countries in September alone, marking what it calls “a significant development in the Trump administration’s effort to encourage burden sharing with other nations to address humanitarian crises across the globe.”

State Department data indicates that 11 countries, including the U.K., Bangladesh, Japan, Qatar, Australia, Thailand, South Korea, and the Netherlands, have increased their aid to the Rohingya people by more than 10% under the Trump administration in 2025 compared to the last year of the Biden administration, the document states.

 The level of influence the Trump administration had over the uptick in aid from these foreign governments is not clear.

The Trump administration also pledged more funding to support Rohingya refugees in September, committing $60 million to the cause in addition to $73 in new assistance announced in March.

In 2024, the final year of the Biden administration, the U.S. contributed just over $300 million to the Rohingya, over 50% of total support for that year, records show.

“The Trump administration has continuously called on nations around the world to join the United States in offering humanitarian assistance to vulnerable populations like Rohingya refugees,” a senior State Department official said. “The media narrative that the obligation to provide aid falls solely on the Trump Administration is tired and ignores the reality that many other countries, including regional actors, have repeatedly failed to step up.” 

The State Department’s push to ramp up foreign aid for the Rohingya comes as the AP has published a report asserting that Rohingya children have died in a camp located in Myanmar because of the Trump administration’s USAID cuts. (Notably, the report covers impact to Rohingya children in Myanmar; the Trump administration’s fundraising efforts have focused on supporting Rohingya refugees in Bangladesh.)

 “Let me be absolutely clear: the Associated Press’ claim that children are dying because of recalibrated U.S. foreign assistance levels is completely false and downright irresponsible,” State Department spokesperson Tommy Pigott said in a statement.

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Moody Blues’ Justin Hayward pays tribute to the late John Lodge

Moody Blues’ Justin Hayward pays tribute to the late John Lodge
Moody Blues’ Justin Hayward pays tribute to the late John Lodge
Inductees John Lodge and Justin Hayward of The Moody Blues perform 33rd Annual Rock & Roll Hall of Fame Induction Ceremony at Public Auditorium on April 14, 2018 in Cleveland, Ohio. (Photo by Jeff Kravitz/FilmMagic)

Moody Blues guitarist and lead vocalist Justin Hayward has paid tribute to his late bandmate John Lodge, whose death was announced Friday.

“I’m very sad and shocked to hear of John’s passing,” Hayward wrote on Instagram, next to a picture of them performing together. “I have such happy memories of making music together. My sincere condolences to his dear wife and family.”

Both Lodge and Hayward joined Moody Blues in 1966, with Lodge replacing bassist Clint Warwick, and Hayward replacing vocalist and guitarist Denny Laine.

With Lodge’s death, Hayward is now the last remaining member of the classic Moody Blues lineup.

Also paying tribute to Lodge on social media is the band Yes, former Genesis guitarist Steve Hackett and Black Sabbath’s Tony Iommi, who, like Lodge, is a native of Birmingham, England.

Iommi wrote on X, “Sad to hear of the passing of John Lodge of the Moody Blues. I had lunch with him a few weeks ago, so quite a shock. They were another Birmingham band, often overlooked. RIP.”

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‘Tron: Ares’ star Jared Leto on his ‘Tron’ fandom, working with Jeff Bridges

‘Tron: Ares’ star Jared Leto on his ‘Tron’ fandom, working with Jeff Bridges
‘Tron: Ares’ star Jared Leto on his ‘Tron’ fandom, working with Jeff Bridges
Jared Leto stars in ‘Tron: Ares.’ (Disney)

It’s time to go back into The Grid.

Tron: Ares, the third film in the Tron franchise, has arrived in theaters. Its star Jared Leto told ABC-owned station WPVI he has been a huge fan of Tron going back to when he was 11 years old and seeing the original film at the movie theater.

“For me, Tron is like someone else’s Star Wars,” Leto said. “I just love the storyline, I love the characters, I love The Grid, I loved the world, I loved that technology, and what they did in that first film was really groundbreaking.”

Leto also praised the 2010 sequel Tron: Legacy, saying, “It took us to a new place and I absolutely adore that film as well.”

Now, with Tron: Ares, the original film’s star Jeff Bridges returns to his role as Kevin Flynn while Leto stars as a highly sophisticated AI being that is brought to the real world for a dangerous mission. Leto says it was surreal to act alongside Bridges in the film.

“He’s incredible, one of my favorite actors of all time,” Leto said. “When he walked on the set for the first time, everyone applauded because they were so excited to have him.”

Leto still remembers going to see the original Tron in theaters and says it is a dream come true to become part of the franchise he loves so much.

“I’m really grateful,” Leto said. “I hope that there’s a kid out there that goes to see [director] Joachim [Rønning]’s Tron and has the same experience that I did that just has their mind blown and is introduced to a world they never knew existed.”

Disney is the parent company of ABC News.

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