New Bill Bans Federal Funding for Abortion, Restricts ACA Coverage: Rollout Begins in 2026

The "No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025" is a new bill that basically eliminates federal money going towards abortions and abortion coverage, especially in plans under the Affordable Care Act (ACA). It's a significant change, and here's how it breaks down.

Cutting Off the Cash

This bill, if passed, flat-out prohibits using federal funds for abortions or for health insurance plans that cover abortions. (SEC. 101) This includes everything from direct funding to tax credits that help people afford insurance. There are exceptions for cases of rape, incest, or if the mother's life is at risk, but otherwise, the tap is turned off. The bill also clarifies that this applies to healthcare facilities run by the federal government and services provided by federal employees. (SEC. 101)

ACA Impact: No Federal Help for Abortion Coverage

Under the ACA, this bill gets even more specific. Starting in plan years after December 31, 2025, if you get tax credits or cost-sharing reductions to help pay for your health insurance, your plan cannot cover abortions. (SEC. 201) You could buy a separate policy just for abortion coverage, but you'd be paying for it entirely out of your own pocket. The same goes for small businesses – if they get tax credits for providing employee health insurance, those plans can't cover abortions either. (SEC. 201)

For example, imagine a barista working at a local coffee shop that offers health insurance. If their employer uses a small business tax credit, that insurance plan will no longer cover abortions. Or, consider someone buying insurance through the ACA marketplace with the help of premium tax credits. If they choose a plan with abortion coverage, they'll lose their tax credits and have to pay the full premium themselves.

Show Me the (Hidden) Costs

The bill also mandates that health plans be upfront about whether they cover abortions and what that coverage costs. (SEC. 202) Starting 30 days after this bill is enacted, all marketing materials, comparison tools, and benefit summaries must clearly state if abortion is covered and, if so, what the extra charge (the "surcharge") is for that coverage. It has to be displayed as clearly as the standard premium.

Think of it like checking a menu and seeing a separate charge for a specific add-on. You'll know exactly what you're paying for, but it also means that if you want that 'add-on' (abortion coverage), you're going to see that extra cost right up front. This could, understandably, make people think twice about choosing plans that include abortion coverage, especially if they're on a tight budget.

The bill defines 'abortion' broadly, including procedures and treatments related to the termination of a pregnancy. This broad definition, combined with the funding restrictions, could create real hurdles for people seeking reproductive healthcare, potentially impacting access to services beyond just the termination of a pregnancy. The bill's provisions could disproportionately affect lower-income individuals who rely on federal subsidies to afford healthcare, making it harder for them to access comprehensive reproductive health services.