WHAT THE LAW DOINCongress, in plain words

S. 3385 · 119th Congress

Lower Health Care Costs Act

IntroducedTaxation
IntroducedDec 8, 2025
Passed SenateNot yet
Passed HouseNot yet
To PresidentNot yet
Became lawNot yet

Where it stands

Introduced. Latest step, Dec 11, 2025: Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 51 - 48. Record Vote Number: 644. (CR S8654-8655) It would change 1 section of existing law.

How this bill changes the law

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S. 3385 would change 1 section of existing law. Read from the bill text as placed on the Senate calendar (Dec 8, 2025).

26 U.S.C. 36B Refundable credit for coverage under a qualified health plan

  • (b) Premium assistance credit amount changed · Sec. 2(a) · see the words
  • (c) Definition and rules relating to applicable taxpayers, coverage months, and qualified health plan changed · Sec. 2(b) · see the words
What the words would change: every change, in place (4)

Today's wording of each part of the law, with what would be struck out and added. Each change also gives the bill's own instruction, word for word.

  1. 26 U.S.C. 36B(b)(3)(A)changedby S. 3385 Sec. 2(a)

    The bill says: in the heading, by striking "through 2025" and inserting "through 2028", and

    Bill text · Current law (26 U.S.C. 36B)

  2. 26 U.S.C. 36B(b)(3)(A)changedby S. 3385 Sec. 2(a)

    The bill says: in the matter preceding subclause (I), by striking "before January 1, 2026" and inserting "before January 1, 2029".

    Bill text · Current law (26 U.S.C. 36B)

  3. 26 U.S.C. 36B(c)(1)changedby S. 3385 Sec. 2(b)

    The bill says: in the heading, by striking "through 2025" and inserting "through 2028", and

    Bill text · Current law (26 U.S.C. 36B)

  4. 26 U.S.C. 36B(c)(1)changedby S. 3385 Sec. 2(b)

    …to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins. In the case of a taxable year beginning after December 31, 2020, and before January 1, 2026before January 1, 2029, subparagraph (A) shall be applied without regard to "but does not exceed 400 percent".

    The bill says: by striking "before January 1, 2026" and inserting "before January 1, 2029".

    Bill text · Current law (26 U.S.C. 36B)

From the bill's official text on GovInfo and the U.S. Code, 2024 edition, which may not yet show changes made since.

What it does

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Lower Health Care Costs Act

This bill extends for three years, through 2028, temporary changes enacted by the American Rescue Plan Act of 2021 (ARPA) and the Inflation Reduction Act of 2022 (IRA) that generally expand eligibility for and increase the amount of the premium tax credit.

Currently, eligible taxpayers may be able to claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To be eligible for the premium tax credit, a taxpayer’s household income must meet or exceed 100% of the federal poverty level (FPL) and, after 2025, may not exceed 400% of the FPL (maximum income limit). For 2021-2025, the ARPA and IRA eliminated the maximum income limit, which generally expands eligibility for the premium tax credit.

Further, under current law, the amount of the premium tax credit is (1) generally the plan premium (conditions apply), minus (2) the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage is a specific percentage that varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the ARPA and IRA lowered the applicable percentages and eliminated the adjustment of the applicable percentages for inflation, which generally increases the amount of the premium tax credit.

The bill extends for three years, through 2028, the elimination of the 400% maximum income limit, the lower applicable percentages, and the elimination of the inflation adjustment for the applicable percentages.

Official summary by the Congressional Research Service (Introduced in Senate, Dec 8, 2025).

Our plain-language breakdown, with what it means for you and the case for and against, is written once a bill starts to move.

What has happened

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  1. Dec 8, 2025Introduced in SenateLibrary of Congress

Show all 6 recorded actions

Recorded votes

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  1. Dec 11, 2025 · SenateCloture Motion Rejected 51–48
    On the Cloture Motion · needed three-fifths
    R 4 yes, 48 noI 2 yes, 0 noD 45 yes, 0 noEach member · Record