President Donald Trump unveiled a proposal on Friday to redirect hundreds of billions of dollars in Affordable Care Act subsidy payments away from insurance companies and send them directly to American citizens.

The announcement came amid tense negotiations in Washington over government funding, as Democrats attempted to tie a new spending bill to an extension of Obamacare subsidies.

WOW! President Trump has backed the Democrats into a CORNER of defending Big Insurance now that he has proposed just giving the money to the people directly

Chuck Schumer doesn’t know how to respond to this.

The Democrat 2026 platform just became pro-Big Insurance scamming… pic.twitter.com/CG8G0mWCLM

— Eric Daugherty (@EricLDaugh) November 8, 2025

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The proposal, revealed in a Truth Social post early Friday morning, signaled a major policy shift that could reshape how healthcare funds are distributed.

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“I am recommending to Senate Republicans that the Hundreds of Billions of Dollars currently being sent to money sucking Insurance Companies in order to save the bad Healthcare provided by ObamaCare, BE SENT DIRECTLY TO THE PEOPLE SO THAT THEY CAN PURCHASE THEIR OWN, MUCH BETTER, HEALTHCARE, and have money left over,” President Trump wrote.

He added, “In other words, take from the BIG, BAD Insurance Companies, give it to the people, and terminate, per Dollar spent, the worst Healthcare anywhere in the World, ObamaCare. Unrelated, we must still terminate the Filibuster!”

The statement followed days of negotiations in Congress over a continuing resolution to reopen the federal government.

Senate Democrats had pushed for a one-year extension of Affordable Care Act subsidies as part of their proposal, arguing that the temporary tax credits were essential to maintaining affordability in health insurance markets.

Republicans opposed the measure, calling it an unnecessary expansion of spending unrelated to the funding bill.

Senate Minority Leader Chuck Schumer described the Democrats’ offer as “a reasonable offer that reopens the government, deals with health care affordability and begins a process of negotiating reforms.”

However, Republicans in the Senate quickly rejected the proposal.

Majority Whip John Thune (R-SD) dismissed the idea, saying, “The Obamacare extension is the negotiation.”

The stalemate left the government partially closed heading into the weekend, with each party blaming the other for the impasse.

President Trump’s announcement appeared to shift the momentum in the talks. By proposing to redirect Obamacare funds directly to individuals rather than insurers, Trump positioned the plan as a direct benefit to consumers while challenging Democrats’ defense of insurance company subsidies.

Within hours of the post, several Republican lawmakers expressed support.

Senator Rick Scott (R-FL) said he would introduce legislation to put the president’s plan into action. “Totally agree, @POTUS! I’m writing the bill right now,” Scott wrote on X.

“We must stop taxpayer money from going to insurance companies and instead give it directly to Americans in HSA-style accounts and let them buy the health care they want. This will increase competition & drive down costs.”

Totally agree, @POTUS! I’m writing the bill right now.

We must stop taxpayer money from going to insurance companies and instead give it directly to Americans in HSA-style accounts and let them buy the health care they want. This will increase competition & drive down costs. pic.twitter.com/GbTdbTWP8b

— Rick Scott (@SenRickScott) November 8, 2025

The proposal comes as both parties continue to debate the future of the Affordable Care Act and federal health care spending.

Democrats have argued that subsidy extensions are necessary to prevent premium increases for millions of Americans, while Republicans have maintained that the current system wastes taxpayer funds by funneling them through private insurance providers.

Aides close to the negotiations said Trump’s announcement caught Senate Democrats off guard.

The administration’s shift from insurance subsidies to direct payments introduced a new dynamic into the ongoing talks, one that could alter both the budget debate and the broader conversation over health care reform.

While the White House has not yet released detailed legislative language, sources familiar with the discussions said the plan could mirror health savings account-style models that allow individuals to manage their own funds for medical expenses.

Lawmakers expect debate on the measure to begin once Congress resumes full sessions next week.

For now, government funding discussions remain at an impasse, but President Trump’s latest proposal has injected new urgency — and controversy — into the fight over the future of federal health care spending.

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