H.R. 7 — No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025

This section establishes a new chapter in Title 1, U.S. Code, prohibiting the expenditure of any federal funds (including trust funds) for abortions or health benefits coverage that includes abortion, and barring abortions by or in federal facilities or by federal employees. It includes exceptions for abortions necessary to preserve the life of the mother (as certified by a physician), resulting from rape or incest, or for treating complications arising from an abortion; permits separate abortion coverage using only non-federal funds (excluding matching funds for federal programs such as Medicaid); clarifies that it does not preempt stricter federal laws; and applies to the District of Columbia.

This section disallows the premium tax credit under IRC §36B and cost-sharing reductions for qualified health plans (QHPs) in ACA Exchanges that provide coverage for abortions (other than any necessary to save the life of the mother or in cases of rape or incest, per 1 USC §§307-308), effective for plan years beginning after December 31, 2025. It similarly excludes such QHPs from the small employer health insurance expense credit under IRC §45R. In both cases, the amendments permit separate abortion coverage or plans so long as no credit applies to premiums or employer contributions for them. (Thus, unlike current law—which allows QHP abortion coverage beyond Hyde Amendment exceptions via segregated allocation accounts to prevent federal funds from paying for prohibited abortions—this eliminates premium assistance for any QHP with such coverage.) The section further strikes ACA §1303(b)(2)-(3) (42 USC 18023(b)), which established those allocation accounts and related rules, and requires multi-State QHPs to exclude coverage prohibited by federal abortion funding restrictions (1 USC ch. 4).

This section revises notice requirements under ACA section 1303(b)(3) for qualified health plans (QHPs) offered through an Exchange. It requires (1) disclosure to enrollees at enrollment, and prominent display by the issuer, Exchange, or Secretary in marketing materials, comparison tools, summary of benefits explanations, and internet portals, of the extent of coverage (if any) of abortions for which public funding is prohibited or permitted; and (2) separate disclosure and identification of any premium surcharge attributable to coverage of abortions for which public funding is prohibited whenever the plan premium is disclosed. The requirements apply to materials made available more than 30 days after enactment.