The Trump administration cut Affordable Care Act subsidies on October 14, 2026, for about 189,000 enrollees identified as deceased or holding duplicate coverage in Medicaid or Medicare. Officials led by HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz estimate the action will save taxpayers $738 million in 2026 without causing coverage loss. The effort expands a broader campaign against federal program waste.
October 2026 ACA subsidy removals
- ▪On October 14, 2026, the Trump administration removed Affordable Care Act marketplace subsidies for approximately 189,000 enrollees after CMS identified roughly 120,000 Medicaid, 58,000 Medicare, and about 11,000 deceased duplicate cases through July 2026
- ▪CMS officials expect to remove Affordable Care Act marketplace subsidies for an additional 3,500 enrollees by the end of October 2026
Estimated financial savings from subsidy cuts
- ▪HHS Secretary Robert F. Kennedy Jr. stated that annualized taxpayer savings from eliminating improper Affordable Care Act subsidy payments exceed $1.5 billion
- ▪HHS Secretary Robert F. Kennedy Jr. estimated that cutting Affordable Care Act subsidies for duplicate and deceased enrollees will save taxpayers $738 million in 2026
September 2026 ACA enrollment halt
- ▪Vice President JD Vance announced in September 2026 that the Trump administration halted ACA enrollment for over 760,000 individuals believed to be fraudulently signed up, saving an estimated $2.2 billion
- ▪CMS Administrator Dr. Mehmet Oz stated that the October 14, 2026 Affordable Care Act subsidy cuts for 189,000 enrollees are separate from the September 2026 enrollment halt for more than 760,000 people
Impact of expiring enhanced subsidies
- ▪The expiration of enhanced federal financial subsidies in 2025 caused average Affordable Care Act marketplace premiums to rise significantly
- ▪A poll by health policy researcher KFF found that approximately 1 in 10 Affordable Care Act marketplace enrollees dropped coverage and became uninsured following the expiration of enhanced subsidies
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