Congressman David Valadao of California’s 22nd District has joined a bipartisan group of lawmakers to introduce the Premium Tax Credit Extension Act. The proposed legislation aims to extend the Enhanced Premium Tax Credit for one year, as it is set to expire at the end of 2025. Lawmakers say this extension would help prevent significant increases in healthcare premiums for families, seniors, and small business owners nationwide.
The Enhanced Premium Tax Credit was originally expanded during the COVID-19 pandemic through the American Rescue Plan Act in 2021. This expansion removed income caps and increased subsidies, which lowered premium costs for low-income consumers and made more middle-income households eligible. As a result, enrollment in ACA marketplace plans rose both in California and across the country.
According to data from Valadao’s office, thousands of residents in California’s 22nd Congressional District depend on these credits to afford health insurance. If the credit expires as scheduled, a family of four earning $64,000 annually could see their premiums rise by nearly 292%.
“Too many hardworking families across California are already struggling with healthcare costs, and the last thing they need is a sudden spike in their health insurance premiums,” said Congressman Valadao. “By introducing a clean, one-year extension for the Enhanced Premium Tax Credit, we can protect families from these higher costs while Congress works toward a more permanent solution.”
Congresswoman Jen Kiggans (VA-02), who also sponsored the bill, stated: “As a nurse practitioner, military spouse, and Mom, I understand firsthand how critical affordable health care is for working families. In Congress, I’ve made it my mission to ensure Virginians—especially our seniors, small business owners, and middle-class families—aren’t blindsided by skyrocketing costs they can’t afford. 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. My legislation will protect hardworking Virginians from facing health insurance bills they can’t afford, thus losing much-needed access to care. We can’t pull the rug out from under hardworking families—we must give Americans more time to plan. This is the last thing Virginians need and it’s unacceptable.”
Congressman Tom Suozzi (NY-03) added: “New Yorkers, including 17,000 of my constituents, rely on the ACA’s enhanced premium tax credits to afford their health insurance. At a time when the cost of living is skyrocketing and Americans are concerned about being able to afford basic necessities, we cannot allow them to face thousands of dollars of health insurance premium increases if these tax credits expire. This is too important to wait until the last second to think about solutions. I will always work across the aisle to find a middle ground that solves the problems Americans are worried about.”
Other co-sponsors include Reps. Brian Fitzpatrick (PA-01), Jared Golden (ME-02), Jeff Hurd (CO-03), Rob Bresnahan (PA-08), Young Kim (CA-40), Carlos Gimenez (FL-28), Tom Kean (NJ-07), Juan Ciscomani (AZ-06), Mike Lawler (NY-17), Don Davis (NC-01), and Marie Gluesenkamp Perez (WA-03).
David Valadao has represented California’s 22nd district in Congress since 2021 after previously serving in the California State Assembly from 2010 to 2012. He succeeded TJ Cox as representative for CA-22 following his election win in 2021. Born in Hanford in 1977, Valadao continues to reside there.
The expiration of these enhanced credits could lead not only to higher monthly premiums but also potentially lower coverage rates among marketplace enrollees both statewide and nationally.
