Failure to Extend ACA Premium Tax Credits Brings Small Businesses Closer to Healthcare Cliff

“The fact that 60 U.S. Senators did not agree to extend the Affordable Care Act’s (ACA) enhanced premium tax credits (EPTCs) will have serious consequences for America’s small businesses. The EPTCs, which lower monthly premiums for health insurance plans purchased through the ACA Marketplace, have been essential for many small businesses and their employees. In 2025 alone, more than 4.4 million out of 5.2 million small business owners and self-employed entrepreneurs enrolled in coverage through the Marketplace received the enhanced premium tax credit. Without the EPTCs, however, KFF estimates that ACA marketplace enrollees would pay 114% more on average for their monthly healthcare premiums. It’s no wonder that Small Business Majority’s research found 74% of small business owners support extending the tax credits.

The continued inability of Congress to reach a meaningful compromise on healthcare policy or most any other issue that impacts small businesses is causing considerable damage to America’s small business ecosystem. When it comes to making healthcare more affordable, the best course of action would be extending the EPTCs before they expire at the end of the year. Doing nothing, however, is not an option that would benefit small firms. As long as Congress fails to act, lawmakers are risking the future of countless small businesses.”