True or false: The American Rescue Plan's expanded ACA subsidies were permanent.

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The American Rescue Plan's enhanced ACA subsidies were explicitly temporary. Congress set them to expire after tax year 2022. This temporary design was partly due to budget constraints and partly a political calculation—some lawmakers wanted future Congresses to revisit the subsidy levels rather than making a permanent commitment. However, before the original ARP subsidies expired, Congress acted again. In August 2022, lawmakers passed the Inflation Reduction Act (IRA), which extended the enhanced subsidies for three more years: 2023, 2024, and 2025. This extension was significant because it kept people's insurance premiums lower. Now, as of December 31, 2025, these enhanced subsidies are set to expire unless Congress acts again. If Congress does not extend them, the income cap of 400% of the federal poverty level returns and the applicable percentages increase, meaning people will face higher premiums starting in 2026. This ongoing uncertainty about subsidies shows how political and budget pressures affect healthcare policy—permanent changes require sustained political will.

True or false: The American Rescue Plan's expanded ACA subsidies were permanent.

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