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As government shutdown drags on and open enrollment begins, small businesses face healthcare cost crisis from expiring ACA tax credits

On the eve of open enrollment and with no end to the government shutdown in sight, small business owners—who represent 25% of all ACA marketplace enrollees—and Rep. Beyer hold press call to discuss survey showing 84% of small businesses worry about affording healthcare next year and 87% want the expiring tax credits made permanent

WASHINGTON, D.C., Oct. 31, 2025 —U.S. Rep. Don Beyer (D-VA-08) joined small business owners from across the country today at a press conference to warn that Main Street faces severe economic fallout if Congress fails to extend the enhanced Affordable Care Act (ACA) premium tax credits, which are at the center of the ongoing government shutdown.

Without immediate Congressional action, roughly5 million small business owners who use the ACA tax credits could face devastating premium increases. A recent national survey of 620 small business owners conducted by Small Business for America’s Future found that 84% are concerned about affording healthcare in 2026 if the tax credits expire, and 87% want Congress to make the credits permanent.

The press conference comes as open enrollment begins Saturday amid a government shutdown fight in Congress centered on the very tax credits small business owners rely on, where there has been no movement to resolve the issue. Without Congressional action, theKaiser Family Foundation projects ACA marketplace premiums will double next year, with the average enrollee’s annual costs rising from $888 to $1,904.

“Congress needs to understand what’s at stake,” said Walt Rowen, Small Business for America’s Future Co-Chair and owner of Susquehanna Glass Co., a third-generation family-owned glass decorating business in Columbia, PA. “When my employees lose affordable healthcare, they look for different jobs that offer healthcare benefits. I’m competing with corporations that can self-insure and when premiums spike, my business gets hurt. This isn’t just about healthcare. It’s about whether Main Street survives.”

Without an extension, many small business owners say they’ll face impossible choices. More than a third report that rising premiums would cause severe financial strain threatening their operations, while almost one in four say they’d be forced to drop coverage for themselves or their employees. Others anticipate freezing hiring, delaying expansion, cutting staff, or raising prices for customers. More than half of business owners have already cut their own compensation due to combined economic pressures ranging from rising healthcare costs to tariff fallout and inflation.

During the call, Rep. Beyer expressed support for small business owners and underscored the urgent need for Congressional action. 

“Allowing health care tax credits to expire would be a disaster for America’s small businesses, which is why the vast majority of small business owners want Congress to extend them,” said Rep. Beyer. “Small business owners also say Congress’ priorities are not aligned with their needs, and that’s easy to understand when tax credits that benefit working people and small businesses expire while Republicans rush to pass a bill that puts us trillions in debt with so much money going to the wealthiest. Congress has an opportunity now to solve multiple problems: end the shutdown, lower the cost of living, improve Americans’ health care. That’s what we should do.”

Small business owners and self-employed workers account for about 25% of all ACA marketplace enrollees, a disproportionately high share compared to the general population. For these entrepreneurs, the ACA tax credits are a lifeline that allows them to compete for workers and stay open. The survey found 81% believe rising healthcare costs put them at a severe disadvantage compared to large corporations that can self-insure.

This crisis comes as small businesses already are grappling with multiple economic pressures: unpredictable tariffs, persistent inflation, and an unfair tax system. This month, Congress passedH.R. 1, a $2+ trillion tax package delivering cuts to corporations and the wealthy but failed to extend the ACA tax credits and slashed nearly $1 trillion from Medicaid. As a result, 72% of small business owners surveyed said Congressional priorities are misaligned with small business needs, and, as the shutdown continues, they want Congress to make the tax credits permanent.

“I wouldn’t be in business today without the ACA tax credits that make it possible for me to get health insurance and be an entrepreneur,” said Kerri VanMeveren, SBAF network member and owner of Amazing Traditions, a government contracting business in Kansas City, Mo. “Now I’m bracing for enormous monthly premium increases, and am worried I may have to close the business I’ve spent more than a decade building because I need to find a job that offers healthcare coverage. Five million small business owners are facing similar situations right now. Congress must act immediately to make these tax credits permanent.”

The survey shows small business owners across the political spectrum agree on a variety common-sense policy solutions to rein in healthcare costs:

• 87% support making the enhanced ACA premium tax credits permanent
• 95% support allowing small businesses to join together for group purchasing power
• 94% support extending Medicare drug price negotiations to private insurance
• 92% support capping commercial drug price increases at the inflation rate
• 96% support hospital price transparency enforcement to enable comparison shopping

A recording of the press call is available  here.

To schedule an interview with a small business owner or representative from Small Business for America’s Future, contact Janel Knight Trulear at janel@emccommunications.com or (617) 875-6581.

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About Small Business for America’s Future
Small Business for America’s Future is a national coalition of small business owners and leaders advocating for policy solutions that promote a thriving, inclusive economy. We work to ensure that lawmakers prioritize the needs of Main Street, advancing a just and equitable economic framework for small business owners, their employees, and their communities. For more information, visitwww.smallbusinessforamericasfuture.org.