S. 2556 explained · 119th Congress · Pending in Congress
Protecting Health Care and Lowering Costs Act
Cosponsors: 46 (44 D, 0 R, 2 other) · per Congress.gov, 2026-10-11
Introduced: 2025-07-30
Latest action (2025-07-30): Read twice and referred to the Committee on Finance. (text: CR S4908)
What S. 2556 does, in plain terms
Protecting Health Care and Lowering Costs Act This bill makes permanent temporary provisions that generally expand eligibility for and increase the amount of the premium tax credit. This bill also repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the One Big Beautiful Bill Act (OBBBA). Currently, eligible taxpayers may claim the premium tax credit, which applies toward the cost of obtaining health insurance through health insurance exchanges. To qualify, 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 maximum income limit is eliminated, which generally expands eligibility for the premium tax credit. Further, under current law, the amount of the premium tax credit is partially based on the taxpayer’s household income multiplied by the applicable percentage. The applicable percentage varies depending on which of six income ranges (adjusted for inflation after 2025) the taxpayer’s household income falls within. For 2021-2025, the applicable percentages are lowered and the adjustment of the applicable percentages for inflation is eliminated, which generally increases the amount of the premium tax credit. The bill permanently eliminates the 400% maximum income limit, lowers the applicable percentages, and eliminates the inflation adjustment for the applicable percentages. Finally, the bill repeals multiple Medicaid, Medicare, and health-related tax provisions enacted by the OBBBA, including certain Medicare and Medicare eligibility and verification requirements, the reduced window for retroactive Medicaid coverage, and premium tax credit verification requirements.
Official summary by the Congressional Research Service, via Congress.gov.
Constitution Index
“VFA Constitution grade”
Not graded yet
S. 2556 has not been graded yet. New measures with an official summary are graded daily under the published rubric.
The Framers
“Founders’ Verdict”
Confidence 0.50
Archived SI output (machine-generated)No editorial review recorded. This historical SI verdict was machine-generated by software and predates the review desk; check it against the official bill text.
Synthesis
Split 2-2: Hamilton and Marshall deem CONSTITUTIONAL under broad taxing power (Art. I §8 Cl.1); Madison and Jefferson deem UNCONSTITUTIONAL as overreach into state powers.
The proposed legislation falls within the domain of taxation, a power expressly granted to Congress. The Constitution vests in Congress the authority 'To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States.' In Federalist No. 30, I argued that the power of taxation is essential to the vitality of the national government, as 'money is with propriety considered as the vital principle of the body politic.' Federalist No. 33 further elucidates that taxes are the chief source of revenue, and Congress must p…
The proposed legislation, titled 'Protecting Health Care and Lowering Costs Act,' falls under taxation but aims to intervene in matters of health care, which are not among the enumerated powers granted to Congress. Under strict construction, the power to lay and collect taxes is limited to purposes such as paying debts, providing for the common defense, and objects of general welfare closely tied to other specified powers; it does not extend to regulating or protecting individual health care, a pursuit reserved to the states and the people. Such federal overreach violates the principle of limi…
The title of this bill, 'Protecting Health Care and Lowering Costs Act,' situated in the policy area of taxation, implies an intent to employ the taxing power not merely to raise revenue for enumerated federal purposes, but to directly influence or regulate matters of individual health care, which are local concerns reserved to the states. While Article I, Section 8, Clause 1 grants Congress authority 'To lay and collect Taxes... to pay the Debts and provide for the common Defence and general Welfare,' this power is circumscribed by the enumerated objects of federal authority. In Federalist No…
The proposed legislation, denominated the Protecting Health Care and Lowering Costs Act, falls within the policy area of taxation, an enumerated power expressly granted to Congress. The Constitution vests in Congress the authority 'To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States.' This power is fundamental and plenary within its sphere, as affirmed in the necessary and proper framework, whereby Congress may select means conducive to legitimate ends. In McCulloch v. Maryland, this Court upheld ac…
Report an error in this Founders' Verdict
What should pass
“VFA SI Solution”
No solution yet
A sourced SI draft appears here once it passes automated checks (Constitution citation, source verification, independent SI critic). How publication works.
For journalists and bloggers
“Embed this grade”
Free to use with the link back. The badge and card update when the grade changes. Embed terms →
