House Speaker Mike Johnson said he will not call for a vote on extending health care subsidies used by many low-income Americans that are set to expire at the end of the year.
The decision means it will almost certainly increase health insurance premiums for millions of Americans.
Republicans said the subsidies were never a permanent solution but a temporary solution to ease Covid-era stressors, while Democrats said the move would lead to a significant increase in health care costs for everyday Americans.
Subsidies were the focus government shutdown for more than 40 days this fall.
Johnson and moderate House Republicans could not agree on how best to extend the benefits, which are expected to cost around $35bn (£26bn) a year, he told reporters on Tuesday.
The subsidies, part of the Affordable Care Act, also known as Obamacare, a market-based system offering health insurance to millions of Americans, were introduced during Covid.
As Americans are currently frustrated by rising prices for many goods and services, lawmakers are calling on congressional leadership to help ease the pain.
“[Many Republicans] “We wanted to vote for the Obamacare Covid-era subsidy that the Democrats created,” Johnson said. “We looked for a way to try to allow the use of this pressure relief valve, but it didn’t happen.”
The House Speaker said House members had been working on the issue all weekend but were unable to reach an agreement.
Johnson said he would not support extending the subsidies because their high cost must be offset by spending cuts.
But moderate House Republicans, many of whom are likely to face tough re-election campaigns in November's midterm elections, said that as the party in power, Republicans cannot afford to increase health care spending.
“I’m angry at the American people,” said Republican New York Congressman Mike Lawler. “Everyone has a responsibility to serve their district, their constituents. You know what's funny? Three-quarters of the people on Obamacare live in states that Donald Trump won.”
The lawyer called on Congress to “fix” the health care system.
As a last-ditch effort, some House Republicans suggested they might join Democratic efforts to force the House to vote for a clean three-year subsidy extension.
Democrats would need just four House Republicans to join their effort to vote for or against the extension.
But with the holiday season quickly approaching and House members planning to leave Washington by the end of the week, if the dismissal motion goes through, it's unlikely it will get a vote until next year.
And even if it passes the House of Representatives, it is unlikely to gain enough support in the Senate.
