Don't cut health insurance subsidies vital to small businesses | Javier Palomarez

They’re now caught in the middle of a congressional standoff, and the economy is showing signs of decline. Millions of small-business owners and self-employed workers are bracing for what will happen if Congress lets the enhanced Affordable Care Act (ACA) tax credits expire this year.

They’re asking themselves: What will we cut to absorb higher health insurance premiums? Does it mean scaling back payroll, freezing hiring or shelving plans to expand? And how can we focus on growth if we’re distracted by the fear of what might happen if we get sick or injured and no longer have health coverage? 

That uncertainty is spreading fast. Twenty-two million Americans depend on these enhanced tax credits to afford health insurance through HealthCare.gov and state marketplaces. More than 4 million entrepreneurs, many running businesses on razor-thin margins, rely on them. Among Hispanic Americans, marketplace enrollment has surged, thanks to the affordability these credits provide. 

Let costly insurance subsidies expire, then encourage real savings | Alfredo Ortiz

If Congress does nothing, these hardworking Americans could see premiums jump by hundreds of dollars monthly, beginning in January. As renewal notices for 2026 open enrollment land in families’ mailboxes, that uncertainty is deepening the anxiety they’re already feeling.

Small-business owners will face a harsh reality: cut hours, reduce staff or close their doors. The consequences won’t stop there. Ending the enhanced tax credits will strip ten of billion of dollars from annual economic output, shrink America's gross national product and lead to the loss of jobs.

At the United States Hispanic Business Council, we represent 4.5 million Hispanic-owned businesses that contribute more than $850 billion to the American economy annually. We never forget that we are first and foremost American businesses. Every job we create, every tax bill we pay, and every product we manufacture strengthens the U.S. economy.

This issue is about the future of American families, businesses and a shared economy.

Small businesses create most new jobs and employ more than half of all working Americans. They are the beating heart of the economy. Unlike big corporations, they don’t have armies of lobbyists or tax lawyers. They run on grit, discipline and belief in the American dream. Their top asset isn’t capital or technology, it’s people.

For every employee, nothing matters more than health. When small-business owners can’t help their people stay covered, productivity drops, economic activity slows and local economies stall. 

Health care isn’t a Republican or Democratic issue, it’s an American challenge. Yet in Washington, both parties are stuck in a staring contest, waiting for the other side to blink. That is a luxury small businesses cannot afford. 

Republicans can lead on this issue. Extending the enhanced ACA tax credits is not about giving to Democrats. It’s about doing the right thing for American small businesses. 

GOP leaders should fast-track one of the existing tax credit extension bills already introduced by Republicans, and commit to getting it across the finish line immediately. Open enrollment began on Nov. 1, and millions of Americans are already experiencing sticker shock. Swift action would send a powerful message that Republicans are acting in the best interests of Main Street. 

Once Republicans take that step, Democrats must do their part. They should stop holding the government hostage and vote to pass a clean funding bill.  

America’s smallest businesses can’t self-insure. They don’t have HR departments, and they're already squeezed by inflation and rising costs.

If Congress fails, it won’t touch Wall Street. But it will devastate Main Street.

Entrepreneurs are resilient but not invincible. Allowing these enhanced tax credits to expire would mean higher costs for families and entrepreneurs, fewer jobs and a rapidly declining economy. Congress should act now, extend the enhanced premium tax credits and keep health care affordable for the people who power America’s small businesses.