Proposal would restore tax credits and let states expand basic coverage

The proposal would repeal section 71301 of Public Law 119–21 and change the laws it amended back to how they would read without that section. This applies to each law amended by section 71301. These changes would take effect as if they had been included in the laws amended by section 71301.

Certain taxpayers would be treated as eligible for the premium tax credit, with income counted as 100 percent of the poverty line. The rule covers taxpayers who meet the stated income and immigration-status conditions. The taxpayer's household income must be at or below the poverty line for a family of that size. The taxpayer must be lawfully present in the United States and ineligible for Medicaid because of that status. The rule would apply to tax years beginning after December 31, 2025.

A state could choose an income limit for basic health coverage of up to 250 percent of the poverty line. The option applies to states setting income limits for their basic health programs. Each state's chosen limit must be at least 200 percent and no more than 250 percent of the poverty line. The option would apply to plan years beginning on or after January 1, 2027.