The Donald Trump administration is planning to provide $500 rebate checks to nearly 1 million people enrolled in Obamacare, or the Affordable Care Act (ACA), ahead of the November 3 midterm elections, according to US media outlet Axios.
Eligible recipients in 30 states would receive the payments directly. The initiative is aimed at ACA customers who paid additional fees through insurance companies during the Biden administration and who do not receive government subsidies toward their premiums or policies.
According to the White House, the rebates would be financed from roughly $500 million in surplus funds generated from those fees. A US government official said the money had remained unused in government accounts.
The number of potential beneficiaries is particularly high in states including Alabama, Alaska, Arkansas, Florida, Delaware, New Hampshire, Texas, Wisconsin, South Carolina, Michigan, Ohio, Mississippi and Missouri.
The payments come as Republicans seek to strengthen their position ahead of the midterm elections, with voters expressing concerns over high inflation and the war in Iran.
The administration has argued that the money should be returned directly to Americans rather than benefiting insurance companies, saying the measure could help people afford healthcare and maintain coverage.
The funds date back to the Biden administration. In 2023, the administration proposed using some of the money to provide free contraceptive services to people outside ACA policies. Republicans in Congress opposed the proposal, arguing that the fees had been intended to support the operation of Obamacare exchanges. The administration subsequently withdrew the plan.
After taking office, the Trump administration reduced some of the fees and lowered premium rates but found that a substantial amount of funding remained available for a potential rebate programme.
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