subsidies

Sept. 19 (UPI) — House Republicans expect to hold a vote Friday on legislation that would fund the government through Nov. 21, but a battle over Affordable Care Act subsidies could upend the plans in the Senate.

Speaker of the House Mike Johnson, R-La., said Thursday he expects he’ll have the votes needed to pass the continuing resolution just as he did in March’s CR vote.

“We’re going to get this government funded,” he told reporters, according to NPR. “We’re going to keep the funding going and our appropriators will have more time to do their work.”

With a six-vote majority, House Republicans are likely to pass the CR, but things are less certain in the Senate, where the GOP can afford to lose only two votes.

An unnamed leader among House Republicans told The Hill that the party will attempt to force Senate Democrats into going along with the CR by refusing to return to business in Congress until Oct. 1. Congress is on a break next week in observance of Rosh Hashanah, but House Republicans have also canceled votes previously scheduled for Sept. 29 and Sept. 30.

Senate Democratic leader Chuck Schumer of New York ended up striking a deal with Republicans and voted in favor of the March CR to avoid a government shutdown at the time. He could block the bill currently under consideration with a filibuster.

Both Schumer and House Democratic leader Hakeem Jeffries of New York have promised to vote against the CR. They cited the need to extend Affordable Care Act subsidies, which are set to expire at the end of the year.

“We will not support a partisan spending bill that Republicans are trying to jam down the throats of the American people that continues to gut healthcare,” Jeffries said Tuesday.

President Donald Trump, meanwhile, expressed support for the CR on a post on Truth Social.

“Congressional Republicans, including [Senate Republican] Leader John Thune and Speaker Mike Johnson, are working on a short term “CLEAN” extension of Government Funding to stop Cryin’ Chuck Schumer from shutting down the Government,” Trump posted on his social media site.

“In times like these, Republicans have to stick TOGETHER to fight back against the Radical Left Democrat demands, and vote “YES!” on both Votes needed to pass a Clean CRP this week out of the House of Representatives. Democrats want the Government to shut down. Republicans want the Government to OPEN.”

Families in Taiwan will receive cash incentives for newborns and fertility treatment.

Taiwan has announced that it is fighting back against low population growth with a new subsidy programme to encourage families to have more children.

Taiwan’s cabinet on Thursday approved standardised cash payouts to families for each newborn and the coverage of a larger proportion of infertility treatment costs, Focus Taiwan reported.

Under the new plan, families will receive $3,320 per newborn, Taiwan News reported, with twins qualifying for a payment of nearly $7,000. The previous system included payouts that ranged from $1,300 to $2,300 per baby, depending on the mother’s employment status.

Taiwan became a “super-aged society” in 2025, meaning that more than 20 percent of its population is aged 65 or older. The island nation has one of the lowest birth rates in the world, CNN reported last year, with its total birth rate in 2022 hitting just .087.

Countries need to maintain a total fertility rate of 2.1 children per woman to hit what the French Institute for Demographic Studies calls “replacement level,” meaning the number of children a couple must have to replace themselves in the population.

Taiwan saw its ninth consecutive year of declining birth rates in 2024, according to Taiwan’s Ministry of the Interior.

The country’s benefits will also extend to couples facing infertility. Women aged 39 and under will reportedly be eligible to receive subsidies for up to six attempts at in vitro fertilization (IVF). Women between the ages of 39 and 45 will receive subsidies for their first three attempts.

Low-and middle-income households will be eligible to receive nearly $5,000 per attempt at IVF.

Minister without Portfolio Chen Shih-chung told Taiwan News the recently announced subsidies are expected to help more than 120,000 families.

Other countries in the region have experimented with the type of programme Taiwan is looking to implement. Parents in Hong Kong receive over $2,500 for each newborn, and parents in South Korea can receive over $2,200 once they’ve had two or more children, CNN reported.

Taiwan’s policy changes are expected to go into effect in January 2026.

WASHINGTON — There’s bipartisan support in Congress for extending tax credits that have made health insurance more affordable for millions of people since the COVID-19 pandemic. But the credits are in danger of expiring as Republicans and Democrats clash over how to do it.

Democrats are threatening to vote to shut down the government at the end of the month if Republicans don’t extend the subsidies, which were put in place in 2021 and extended a year later when Democrats controlled Congress and the White House. The tax credits, which are due to expire at the end of the year, go to low- and middle-income people who purchase health insurance through the Affordable Care Act.

Some Republicans who have opposed the healthcare law, known as Obamacare, since it was enacted in 2010 are suddenly open to keeping the tax credits. They acknowledge that many of their constituents could see steep hikes in coverage if the subsidies are allowed to lapse.

But the two sides are far apart. Republicans are divided, with many firmly opposed. GOP leaders in the House and Senate have been open but noncommittal on the extension, and many of those Republicans who say they support it argue that the tax credits should be reworked — potentially opening up a new healthcare debate that could take months to resolve.

Democrats would be unlikely to agree to any changes in the subsidies, increasing the chances of a standoff and mounting uncertainty for health insurers, hospitals, state governments and the people who receive them.

“In just a few weeks, unless Congress acts, millions of Americans will start getting letters in the mail telling them their health insurance costs are about to go through the roof — hundreds of dollars, thousands in some cases,” Senate Democratic leader Chuck Schumer (D-N.Y.) said last week.

Surging enrollment

Enrollment in Affordable Care Act plans has surged to a record 24 million people in large part due to the billions of dollars in subsidies that have lowered costs for many people. The expanded subsidies allowed some lower-income enrollees to access health plans with no premiums and capped the amount higher earners pay for premiums to 8.5% of their income. It also expanded eligibility for middle-class earners.

With expiration just a few months away, some of those people have already gotten notices that their monthly premiums are poised to surge next year. Insurers have sent out notices in nearly every state, with some proposing premium increases of as much as 50%.

Lawmakers are facing pressure to act from some of the country’s biggest industries, including the insurers that cover people on the marketplace and hospital executives who say they’re already going to be squeezed by the Medicaid cuts in President Trump’s massive spending and tax bill enacted this summer.

“There’s broad awareness that there’s a real spike in premiums coming right around the corner, both Republicans and Democrats,” said David Merritt, senior vice president of external affairs at Blue Cross Blue Shield. “It’s certainly lining up for Congress to have an opportunity to head off this problem.”

Companies have said they’ll need to raise premiums without the subsidies because healthier and younger people are more likely to opt out of coverage when it gets more expensive, leaving insurers to cover older and sicker patients.

In Iowa last month, the state’s insurance commissioner weighed increases ranging from 3% to 37% against a stream of angry public comments. One woman who runs a garden center in Cedar Falls said she was considering dropping her health insurance.

“I am already living as frugally as I possibly can while working as hard as I possibly can, putting in as many hours as I am allowed to at my job, never missing a day of work,” the woman, LuAnn, wrote in a public comment published to the commissioner’s website.

Feud over Obamacare

On Capitol Hill, the issue has become entangled in a larger fight over government funding as the threat of a shutdown looms at the end of the month. Schumer and House Minority Leader Hakeem Jeffries (D-N.Y.) have said Democrats will not vote to keep the government open unless an extension of the healthcare tax credits is part of the deal. Republicans have said that they want more time to look at the subsidies and potentially scale them back. They will also have to wait for a signal from Trump, who has not yet weighed in.

Jeffries said last week that “we will not support a partisan Republican spending bill that continues to rip away healthcare from the American people.”

Republican leaders are eyeing a potential stopgap bill that would keep the government open for a few weeks, but they are unlikely, for now, to include the extension. GOP leaders in both the House and Senate are also under pressure from some members who worry that premium increases will be a political liability before next year’s midterm elections.

Senate Majority Leader John Thune (R-S.D.) has said he wants to see a proposal from Democrats on how to extend the subsidies since they are pushing the issue. “Maybe there is something we can do in the middle as a solution,” he said in a Punchbowl News interview Thursday, adding that his members are divided on the issue.

Still, Thune has ruled out quick action, even as he noted that premium notices will go out soon. He has said a short-term spending measure to fund the government for several weeks while Congress finishes its budget bills is not likely to include an extension of the benefits,

House Speaker Mike Johnson (R-La.) has said that many of his members would oppose an extension, but he has not ruled it out.

In recent days, 15 House Republicans in competitive political districts introduced legislation to extend the tax credits for one year. “While the enhanced premium tax credit created during the pandemic was meant to be temporary, we should not let it expire without a plan in place,” said Rep. Jen Kiggans (R-Va.), who led the effort with Rep. Tom Suozzi (D-N.Y.).

Middle-class and small-business owners, including many in Kiggans’ coastal Virginia district, will be especially vulnerable to big health insurance hikes if the subsidies are not extended.

Several Senate Republicans also said they’d favor an extension. Sen. Josh Hawley of Missouri said that if Congress doesn’t act, some premiums will “skyrocket, and not by a little bit. We’re looking at massive increases. People will not be able to afford it.”

Sen. John Cornyn (R-Texas) said he thinks Congress should scale back the subsidies for the highest-income people who receive them. “I think we all know that access to healthcare is important and we take it very seriously,” he said.

Senate Finance Committee Chairman Mike Crapo (R-Idaho), whose panel has jurisdiction over the tax credits, said he’s working with his colleagues to find a solution. “There are a lot of ideas being thrown out there,” he said. “I’m trying to find a solution; I’m not telling you what the solution is.”

Others were firmly against it. “It’s costing us billions of dollars,” Sen. Ron Johnson (R-Wis.) said.

Open enrollment begins Nov. 1, and people will begin to see “real sticker shock” as Affordable Care Act plan prices are posted next month, Sen. Tammy Baldwin (D-Wis.) said.

“Timing is important,” she said.

Jalonick and Seitz write for the Associated Press. AP writers Lisa Mascaro in Washington and Hannah Fingerhut in Des Moines contributed to this report.

Amid their public feud over the looming tax bill, US President Donald Trump has suggested that the Department of Government Efficiency (DOGE) review subsidies tied to once ally Elon Musk, including those received by Tesla and SpaceX, in order to save money.

“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!,” the president said in an early morning post on Trump’s social media platform Truth Social.

Trump’s remarks on Tuesday came after Musk renewed his criticism of the sweeping tax-cut and spending bill — which the White House hopes to sign into law by July 4th — pledging to unseat lawmakers who supported it after campaigning on limiting government spending.

Shortly after, Senate Republicans hauled Trump’s big tax breaks and spending cuts bill to passage Tuesday on the narrowest of margins, pushing past opposition from Democrats and their own GOP ranks after a turbulent overnight session.

The outcome capped an unusually tense weekend of work at the Capitol, the president’s signature legislative priority teetering on the edge of approval or collapse. In the end, that tally was 50-50, with Vice President JD Vance casting the tie-breaking vote.

Musk and Trump spar over bill

Feuding with Trump could create hurdles for Tesla and the rest of Musk’s business empire.

The US Transportation Department regulates vehicle design and would play a key role in deciding whether Tesla can mass-produce robotaxis without pedals and steering wheels, while Musk’s rocket company SpaceX has about $22bn in federal contracts.

Trump previously threatened to cut Musk’s government contracts when their relationship erupted into an all-out social media brawl in early June over the bill, which non-partisan analysts have said would add about $3 trillion to the US debt.

But after weeks of relative silence, Musk rejoined the debate on Saturday as the Senate took up the package, calling it “utterly insane and destructive” in a post on X.

On Monday, he said lawmakers who campaigned on cutting spending but backed the bill “should hang their heads in shame!” “And they will lose their primary next year if it is the last thing I do on this Earth,” Musk added.

The criticism marked a dramatic shift after the billionaire spent nearly $300m on Trump’s re-election campaign and led the administration’s controversial DOGE initiative.

Musk has argued that the legislation would greatly increase the national debt and erase the savings he says he achieved through DOGE.

Conflicts of interest

Musk was long slammed for his conflicts of interest while leading DOGE — accused of going after government agencies that had open investigations against him and his associated companies.

A report from the left-leaning think tank Public Citizen found that 70 percent of the agencies in May found that Musk aimed to make significant cuts to agencies, including the National Highway Traffic Safety Administration, which had been investigating Tesla.

The Food and Drug Administration, which had been investigating his brain implant chip, Neuralink, and cuts to the Department of Defense, which has been called for by both progressive Democrats as well, comes as SpaceX receives more than $22bn in federal contracts from the agency, according to the report.

The market response

There are conflicts with Musk within the bill he’s actively rallying against. The bill, which Trump eliminated the EV tax credit, Musk originally said would not hurt Tesla. The EV tax credit, however, has helped other carmakers make more affordable electric vehicles for more consumers, and Musk has recently changed his tune.

In a note last month, JP Morgan said cutting the EV tax credit could cost Tesla $1.2bn annually. Now the market is reacting as these plans might come to fruition in a matter of days, and amid the president’s Truth Social post, spooking investors.

Tesla stock tumbled roughly 6 percent as of 11:00am ET (15:00 GMT) and about 13 percent over the last five days.

“[This] BFF situation has now turned into a soap opera that remains an overhang on Tesla’s stock with investors fearing that the Trump Administration will be more hawkish and show scrutiny around Musk related US government spending related to Tesla/SpaceX and most importantly the autonomous future with the regulatory environment key to the future of Robotaxis and Cybercabs,” Dan Ives, senior analyst at Wedbush Securities said in a note provided to Al Jazeera earlier this morning.

Musk’s other companies include SpaceX, X Corp, and Neuralink are privately held companies.

More broadly the markets erased some of the gains in the last few days. The tech-heavy Nasdaq is down by about a full percentage point and the S&P 500 down 0.3 percent.  Dow Jones Industrial Average, on the other hand, is trending upwards, roughly 0.6 percent higher than the market open.