In an unexpected move, the White House is set to propose a two-year extension of critical Obamacare subsidies, which are slated to expire at the end of next month. According to sources familiar with the matter, the proposal will also introduce new eligibility restrictions, signaling President Donald Trump’s first significant step into the contentious health care debates on Capitol Hill.

The looming expiration of these subsidies has put Affordable Care Act (ACA) enrollees at risk of facing significant increases in health care premiums. The White House's plan aims to mitigate such spikes but introduces measures that could restrict access to these subsidies.

Details on the proposed framework remain sparse as a White House official stated, “Until President Trump makes an announcement himself, any reporting about the administration’s healthcare positions is mere speculation.” However, insiders have revealed that the plan might involve new income caps and minimum premium payments for enrollees. Specifically, subsidies would only be available to individuals earning up to 700% of the federal poverty line, a threshold discussed in separate bipartisan Senate negotiations.

Moreover, the proposal is said to include a provision for enrollees to make a minimum premium payment, addressing conservative concerns that many Americans are unaware they pay nothing towards their ACA plans.

Additionally, the framework is expected to call for Congressional appropriation of funds for cost-sharing reductions, which help lower out-of-pocket costs for ACA plans. A notable feature of the plan would allow enrollees to receive part of their tax credit in a tax-advantaged savings account if they choose lower-premium health plans. This idea, endorsed by Trump, aims to give funds directly to people rather than through indirect subsidies to insurance companies.

The reaction on Capitol Hill has been mixed. While Senate Republicans agreed to a vote on ACA tax credits as part of a recent deal to reopen the government, GOP members are divided. Hard-line conservatives push for letting the subsidies lapse, whereas moderate Republicans advocate for their extension. Some are even calling for a complete health care overhaul.

Democratic lawmakers, on their part, are pressing for negotiations on an extension, but it is unclear whether they will accept a plan with the proposed restrictions. The stance of House GOP leaders also remains uncertain following their recent critique of the ACA as the “Unaffordable Care Act.”

As the deadline approaches, all eyes are on the White House, waiting for an official announcement that could shape the future of health care policy in the United States. The proposed changes to Obamacare could signify a critical pivot in Trump’s health care strategy, balancing between conservative demands and the needs of millions of Americans relying on ACA subsidies to afford health insurance.