USCM Urges Congress to Extend ACA Premium Tax Credits Before Expiration

The U.S. Conference of Mayors (USCM), led by Allentown Mayor Matt Tuerk and CEO Tom Cochran, has urged Congress to extend the Affordable Care Act (ACA) enhanced premium tax credits before they expire on December 31, 2025. The extension is critical to prevent nearly 5 million Americans from losing health insurance coverage due to unaffordable premiums, which are projected to more than double for subsidized enrollees in 2026. The expiration of these tax credits would significantly impact local governments and healthcare providers, leading to increased uncompensated care costs estimated at $7.7 billion and revenue shortfalls exceeding $30 billion for safety-net hospitals and rural providers nationwide. These financial strains risk service cutbacks, hospital closures, and reduced access to essential healthcare services in communities across the country. Mayors highlighted that rising uninsured rates intensify pressures on municipal budgets, which are currently strained and unable to absorb these additional costs. The letter also emphasized the broader economic and social consequences, including exacerbated mental health challenges and affordability issues for families balancing healthcare costs against other essentials like housing and utilities. The USCM is advocating for bipartisan legislative action to maintain these premium tax credits to sustain health insurance affordability and stability for millions of Americans, underscoring the urgency as the expiration deadline approaches. The organization represents cities with populations over 30,000 and serves as a key voice linking local government concerns to federal healthcare policy decisions.