Trump says he's sending $500 checks to 1 million Americans: Here's why
U.S. President Donald Trump listens to a reporters question in the Oval Office at the White House on September 28, 2026 in Washington, DC. (Photo by Kevin Dietsch/Getty Images)
The Trump administration says it will start sending $500 checks to 1 million Americans starting Wednesday.
The White House says the payments are going to Affordable Care Act (Obamacare) enrollees across 30 states who were allegedly overcharged by the Biden administration.
Trump ACA refund checks
What we know:
On Sept. 10, President Trump announced in a video on X that his administration would be sending $500 checks to 1 million Americans in 30 states starting in October. According to a letter reviewed by USA Today, the checks will be sent starting Sept. 30.
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The checks are separate from the $5,000 Trump promised to every American if Republicans keep control of Congress in the November midterms.
Trump says $5K checks will '100 percent' happen
President Trump spoke to reporters before boarding Air Force One en route back to Washington, D.C. from Ireland.
What they're saying:
Trump claims former President Joe Biden’s administration charged user fees to health insurance companies that were then passed down to consumers via higher premiums. Trump says the Biden administration kept more than what was needed to operate the health care exchange, though he hasn’t provided evidence of what he called "gross mismanagement" of the funds.
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What we don't know:
It is unclear whether the $500 rebate represents what each enrollee may have overpaid, where the money for the rebates would come from and whether it requires congressional approval for disbursement.
Why critics call it a ‘gimmick’
The other side:
Cynthia Cox, a vice president and director of the ACA program at the healthcare research nonprofit KFF, challenged Trump’s claims. She told The Associated Press it’s entirely possible that the funds Trump has promised came from fees collected during Trump’s first term. His first administration collected more user fees from insurers than it spent, resulting in an estimated $1 billion in unspent funds, according to KFF analysis.
ACA costs skyrocket for many Americans
By the numbers:
About 19 million people receive insurance through the Affordable Care Act exchange.
Big picture view:
Trump’s announcement comes as the price of ACA insurance has skyrocketed for many Americans during his own second term. The Trump administration opposed extending COVID-era subsidies that had helped offset the costs of health insurance for most enrollees during Biden’s term.
RELATED: Millions drop Affordable Care Act plans, new data shows
After the Republican-led Congress allowed the subsidies to expire this year, premiums doubled or tripled for many enrollees, prompting millions to downgrade their plans or exit the program entirely.
Cox said Trump’s plan "does not appear to be helping the people who lost coverage because they could not afford to continue purchasing insurance."
The Source: This article includes information from President Donald Trump and The Associated Press.