New Bill Bans Federal Funds for Most Abortions, Restricts ACA Subsidies Starting 2026

The "No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025" aims to completely wall off federal money from abortion services, and it significantly changes how the Affordable Care Act (ACA) handles abortion coverage. It adds a new chapter to Title 1 of the U.S. Code to flat-out prohibit using federal funds for abortions or for health plans that cover them, with narrow exceptions for rape, incest, or saving the mother's life (SEC. 101). This ban extends to federal healthcare facilities and employees.

Zero Federal Dollars for Abortion

This section is the heart of the bill: no federal money can go toward abortions or health benefits that include abortion coverage. That includes everything from direct funding to tax credits. The bill explicitly states this applies to D.C. as well, meaning any funds approved by Congress for D.C. are subject to this restriction (SEC. 101).

This could directly affect people who receive healthcare through federal programs or facilities, limiting their access to abortion services. For example, a veteran receiving care at a VA hospital would not be able to have an abortion performed there, except in the very limited cases of rape, incest, or life endangerment. A federal employee with a government-sponsored health plan would also find their abortion coverage severely restricted.

ACA Changes: No Subsidies for Abortion Coverage

Starting in 2026, the bill prohibits the use of ACA premium tax credits and cost-sharing reductions for any health plan that covers abortion (SEC. 201). This means that individuals who rely on these subsidies to afford health insurance might have to choose between a plan that covers abortion and a plan they can afford. For instance, a self-employed individual using ACA subsidies to purchase insurance would no longer be able to use those subsidies for a plan that includes abortion coverage. They'd either have to pay the full premium for that plan or choose a different plan without abortion coverage.

Small businesses also get hit. The bill says small businesses can't get the health insurance expense credit if the plan they choose covers abortion (SEC. 201). This could make it more expensive for small businesses to offer comprehensive health benefits to their employees.

"Full Disclosure" - But at What Cost?

The bill mandates that health plans clearly disclose whether they cover abortion and separately list any surcharge related to that coverage (SEC. 202). This information has to be prominently displayed in all marketing materials, websites, and plan summaries. While this is presented as a transparency measure, it could potentially stigmatize plans that do cover abortion, making them less attractive to consumers or employers. It also adds an administrative burden for insurance companies. This requirement kicks in 30 days after enactment, making it one of the most immediate impacts of the bill.

Real-World Challenges and Questions

While the bill includes exceptions for rape, incest, and life endangerment, the actual implementation of these exceptions can be complex. The language around "necessary to save the life of the mother" can be open to interpretation, potentially creating delays or denials of care. Also, how will