17 House Republicans Cave on Subsidies While California Loots Medicaid
22nd January 2026
Seventeen House Republicans gave California Democrats a late Christmas present this month when they crossed the aisle to vote for extending enhanced Obamacare premium subsidies for another three years.
Not only did they move these massive handouts one step closer to permanent entitlement status, but they failed to advance reforms that would actually lower health care costs, like closing the Intergovernmental Transfer loophole that has cost taxpayers tens of billions over time.
The Senate should stop this bill in its tracks and—in anticipation of pushback from those who have never seen a government expansion they didn’t like—prepare to argue to the public why propping up a broken system won’t reduce health insurance premiums. As I argued in The Hill, these subsidies just mask the true cost of government distortion.
Since the Affordable Care Act passed, average family premiums have exploded to more than $25,000 per year. Government subsidies haven’t stopped that rise. They’ve enabled it—by insulating insurers from competitive pricing and reducing any pressure for meaningful reform.
And while Washington debates whether to extend temporary tax credits, states like California are quietly siphoning off billions in federal Medicaid dollars through legalized budget fraud tied to the Intergovernmental Transfer loophole.