Democrats spotlight their demand for restored health insurance subsidies in budget stalemate

With a potential government shutdown just days away, U.S. Rep. Mike Levin and Sen. Adam Schiff held a news conference in Oceanside Thursday afternoon to draw attention to the condition Democrats have placed on a budget deal: restoration of the enhanced premium tax credits that help millions afford their monthly health insurance premiums.

President Donald Trump’s budget bill, signed into law last July, does not technically cut premium tax credits but rather allows them to expire on Dec. 31. Congress faces a deadline of Sept. 30 to pass a new budget and avoid a government shutdown.

Studies estimate that about 5 million Americans would not renew coverage through Affordable Care Act health insurance exchanges, such as Covered California, if these payments are not renewed before the end of the year. The exchange calculated that California consumers on exchange plans would see an average premium increase of 97% if the credits are not extended.

A breakdown published by Covered California shows that about 120,000 enrollees in San Diego County would be affected, with monthly premiums increasing $125 on average.

Officials said during Thursday’s news conference that about 660,000 Californians will be affected if credits are not renewed.

As a deadlock in Congress has prevented passage of the federal budget, Democrats have garnered increasing attention for drawing a line on this particular issue. Party leaders have indicated they are willing to let a government shutdown proceed next week if action is not taken to renew the credits.

Congressional leadership, Levin said, was scheduled to meet with the President and Republican leaders to discuss preservation of the credits, but that meeting did not materialize.

“This whole situation, as far as I’m concerned, is on him (Trump) and is on the Republican leaders of Congress who empower him regardless of the cost,” Levin said.

“What we are seeking in these negotiations over the budget that are due in days is pretty simple and, I think, pretty reasonable, and that is, don’t raise health insurance on millions of people,” Schiff added. “Don’t price them out of their health insurance.”

Jonathan Wilcox, deputy chief of staff for Rep. Darrell Issa, San Diego County’s most prominent Congressional Republican, did not give the strategy of linking tax credit renewal to budget passage much of chance of success.

“Mike Levin and Adam Schiff are demanding a government shutdown if they don’t get billions more in government spending. I’m sure the public would conclude this is textbook political blackmail if it weren’t so fake and fact-free. Congressman Issa worked hard to keep the government open and believes this Democrat deception won’t get very far,” Wilcox said in an email.

Schiff and Levin chose a TrueCare health center on Mesa Drive in Oceanside to deliver their message. Formerly known as North County Health Services, the federally qualified health center has 22 locations in the region. Such organizations generally provide primary care services to residents with Medi-Cal coverage, the state’s last-resort health insurance program for needy or disabled residents.

Michelle Gonzalez, the organization’s president and chief executive, noted that the system is not ready to absorb the care of so many additional residents without medical coverage.

“Health centers are facing skyrocketing costs, operating on razor-thin margins and facing continued uncertain funding, and all of this while working under the mandate to serve everyone who walks through our doors,” Gonzalez said.

Schiff called for the president to come to the table on the issue.

“I don’t know why they’re fighting so hard for the right to raise people’s health insurance costs,” Schiff said. “That seems untenable to me, but that’s where they are.”

The Hill, a publication that covers politics and policy in Washington, published a piece on the Democrats’ strategy around premium tax credits Thursday morning that quoted Senate Majority Leader John Thune (R-S.D.) on the matter.

“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 told The Hill.

©2025 The San Diego Union-Tribune. Visit sandiegouniontribune.com. Distributed by Tribune Content Agency, LLC.