CBO Projects $350 Billion Deficit Increase from Permanent ACA Tax Credit Extension

The Congressional Budget Office (CBO) has projected that making the enhanced Affordable Care Act (ACA) tax credits permanent could increase the U.S. federal budget deficit by approximately $350 billion over the next decade. This fiscal impact is estimated alongside an expected rise in health insurance coverage among Americans. The analysis is informing current discussions among lawmakers, particularly Democrats, who are considering extending these tax credits to stabilize ACA marketplaces and improve insurance accessibility.