By Tamara Best
Looking ahead to 2026, several developments are on the horizon that could affect household finances and are worth watching closely.
ACA subsidies uncertain, Medicare beneficiaries see some relief
With Congress adjourned until the new year and no deal reached on subsidies under the Affordable Care Act (ACA), millions of Americans could face premium increases starting January 1. CNBC reports that 92% of ACA enrollees may see higher costs, with small businesses, early retirees, and the middle class particularly affected once subsidies expire. While the future of ACA subsidies remains uncertain until Congress returns, some consumers may find relief elsewhere: the first set of negotiated Medicare drug prices is going into effect, covering treatments for serious chronic illnesses, autoimmune conditions, and chronic kidney disease. These drugs are estimated to save $1.5 billion in annual out-of-pocket expenses and include Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and NovoLog.
SNAP food restrictions begin
Over a dozen states have been granted food restriction waivers for the Supplemental Nutrition Assistance Program (SNAP). The waivers largely prohibit recipients from utilizing the benefit to purchase “junk foods,” such as soda and candy, and will roll out at different points in 2026. It is unclear whether other states will seek waivers as part of a push under the Trump administration’s Make America Healthy Again initiative. SNAP offers a critical monthly lifeline for roughly 42 million Americans who depend on it to assist in buying groceries.
In a United States Department of Agriculture (USDA) press release earlier this month, Secretary of Agriculture Brooke Rollins said “…we are restoring SNAP to its true purpose – nutrition. Under the MAHA initiative, we are taking bold, historic steps to reverse the chronic diseases epidemic that has taken root in this country for far too long.” SNAP benefits have been a political lightning rod, and earlier this fall, full payments were paused briefly during the government shutdown, sparking a string of legal action, before being reinstated in November.
For tips on finding free or low cost food, check out Life Kit from NPR.
Federal student loan default may trigger pay garnishment
The Department of Education announced that wage garnishment for student loan borrowers in default will resume next month, after pandemic-era pauses on payments were extended multiple times. “We expect the first notices to be sent to approximately 1,000 defaulted borrowers the week of January 7, and the notices will increase in scale on a month-to-month basis,” the department said in a statement.
Borrowers are considered in default after failing to make a loan payment for at least 270 days, and as of June, approximately 5 million borrowers were in default, according to the department. For those borrowers, the DOE can garnish up to 15% of wages for repayment, beginning 30 days after a notification is sent, and continuing until the loan is paid in full or is no longer in default. Borrowers seeking assistance or additional information can visit the Federal Student Aid site.
