S. 186 — No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025

This section establishes a new Chapter 4 in Title 1, United States Code, prohibiting the use of any federal funds—including those in trust funds—for abortions (§301) or health benefits coverage that includes abortion (§302), and barring abortions in federal facilities or by federal employees (§303). The prohibitions do not apply to abortions necessary to preserve the life of the mother, or those resulting from rape or incest (§308); treatment of complications arising from any abortion (§307); or separate abortion coverage purchased solely with non-federal funds (not including matching funds for federal programs such as Medicaid) (§§304, 305). The chapter applies to the District of Columbia (§309), does not preempt stricter federal laws (§306), and permits non-federal providers to offer such coverage with non-federal funds (§305).

This section disallows premium tax credits under IRC §36B for individuals enrolled in qualified health plans (QHPs) on ACA Exchanges that provide coverage for abortions other than those necessary to save the life of the mother or in cases of rape or incest (i.e., per 1 U.S.C. §§307, 308), while permitting separate abortion coverage or plans ineligible for such credits. It similarly excludes QHPs with such abortion coverage from the small employer health insurance expense credit under IRC §45R, while permitting separate abortion coverage or plans ineligible for the credit. The section strikes paragraphs (2) and (3) of ACA §1303(b) (42 U.S.C. 18023(b)), which prohibited federal premium assistance and cost-sharing reductions from paying for abortions ineligible for federal funding and required issuers to establish separate allocation accounts. It further requires multi-state QHPs to exclude coverage for abortions prohibited under federal funding restrictions (chapter 4, title 1, U.S. Code). The changes apply to taxable years ending after December 31, 2025, and plan years beginning after such date.

This section revises notice requirements under ACA section 1303(b)(3) (42 U.S.C. 18023(b)(3)) for qualified health plans offered through an Exchange to require disclosure to enrollees at the time of enrollment, and prominent display in marketing or advertising materials, comparison tools, summaries of benefits and coverage, and related internet portals, of the extent of coverage (if any) of abortions for which public funding is prohibited or permitted. It further requires 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 in such materials. The requirements apply to materials, tools, or other information made available more than 30 days after enactment.