ST. PAUL, Minn. – The federal government shut down this morning as leaders failed to reach an agreement to keep the government funded.

A main sticking point is funding for Affordable Care Act (ACA) enhanced premium tax credits that are set to expire at the end of the year. These enhanced tax credits were introduced in 2021 and later extended through the end of 2025. They made health insurance more affordable for middle-income families by building upon baseline ACA tax credits. If the enhanced tax credits expire, more than 89,000 Minnesotans will pay more every month for health care coverage, according to MNsure, Minnesota’s health insurance marketplace.

The expiration will hit middle-class Minnesotans, farmers, small business owners and individuals aged 55 and older especially hard. Minnesota Department of Commerce Commissioner Grace Arnold announced today that insurance rates are projected to rise 21.5 percent in the individual market and 14.2 percent in the small-group market in 2026, based on current law. These are the largest rate increases in nearly 10 years, according to the state commerce department.

“With corn, soybean and wheat prices down and production costs up, farmers are already facing tough decisions. Rising prices for health insurance are another added burden for independent family farmers, forcing some to choose between buying health insurance, making their operating loan payments or in some cases, putting food on the table,” said Minnesota Farmers Union (MFU) President Gary Wertish. “We need Congress to extend the enhanced tax credits that make health insurance more affordable. Making sure farmers and others can afford healthcare insurance shouldn’t be partisan. Working together, we can get this done. Farmers don’t need more financial uncertainty right now.”

About Minnesota Farmers Union

Minnesota Farmers Union works to protect and enhance the economic interests and quality of life of family farmers and ranchers and rural communities. MFU is a nonprofit membership-based organization. Membership is open to everyone. Learn more and join at www.mfu.org and follow MFU on Facebook, X, Bluesky and Instagram.

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Minnesota Farmers Union—Standing for Agriculture, Working for Farmers (www.mfu.org).