Proposed Rules Would Narrow Who Gets ACA Premium Tax Credits From 2027
Treasury and the IRS would limit the credit to citizens, nationals and certain lawfully present noncitizens, and add verification for advance payments. Comments close November 30.
The Treasury Department and the IRS have proposed regulations changing who can claim the Premium Tax Credit, the refundable credit that lowers the cost of health insurance bought through the Affordable Care Act marketplaces. The rules carry out changes in the 2025 tax law and would take effect beginning in 2027.
Under the proposal, the credit would be limited to U.S. citizens, U.S. nationals and certain lawfully present noncitizens, and new verification requirements would apply before advance payments of the credit are made. The Department of Health and Human Services is expected to issue parallel rules covering how the marketplaces carry out the checks.
The administration presents the rules as closing eligibility loopholes and preventing improper claims; Treasury Secretary Scott Bessent said subsidies should be reserved for people eligible under federal law. The Federal Register notice sets out which categories of noncitizens would remain eligible and the full verification procedures.
Nothing changes for 2026 coverage, and enrollment for 2027 marketplace plans has not opened yet. Comments on the proposed rules are due November 30 through the Federal Register docket.
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