President Donald Trump announced Thursday that the federal government will send $500 refunds to nearly 1 million Americans in 30 states, attributing the payments to what the administration describes as overcharges tied to Obamacare exchange user fees collected during the Biden Administration. The administration said eligible recipients should start receiving the refunds in October 2026.
According to the announcement, user fees levied on plans sold through the Affordable Care Act’s exchanges were passed on to consumers via higher premiums, producing revenue above what was needed to run federal exchange operations. The administration contends this generated a substantial surplus of funds that were not directed back to the consumers who bore those higher costs.
The refunds will be targeted to individuals who do not receive premium assistance under the Affordable Care Act and who reside in the 30 states that rely on the federal exchange to operate their Obamacare markets. The states listed as eligible are: Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Hawaii, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, and Wyoming.
In addition to announcing the refunds, the administration pointed to a series of regulatory and legislative actions it said address marketplace integrity and affordability. These include issuance of the Marketplace Integrity and Affordability Rule, steps to close loopholes used by brokers to enroll individuals fraudulently, and enactment of the Working Families Tax Cut Act, which the administration says permanently instituted eligibility checks for government-funded subsidies.
The administration also noted two executive orders signed earlier in its term: one in February 2025 intended to increase patient access to healthcare pricing information, and another in May 2025 aimed at aligning U.S. prescription drug prices with those paid by similar nations.
On pharmaceutical negotiations, the administration stated that as of August 31, 2026 it had reached 26 agreements with drug manufacturers, covering nearly 90% of the branded drug market. The Working Families Tax Cuts Act was further credited with expanding access to health savings accounts for up to ten million people enrolled in Obamacare and enabling a $50 billion investment in rural healthcare.
Summary of the policy action
- $500 refunds to nearly 1 million Americans in 30 federal-exchange states.
- Refunds aimed at those not receiving premium assistance under the ACA; disbursements to begin October 2026.
- Administration attributes the refunds to excess user fees collected during the prior administration that were passed on to consumers.