States are protecting residents from rising health care costs

Enhanced premium tax credits helped keep health insurance affordable for people who buy coverage through the federal marketplace, but Congress allowed those subsidies to expire at the end of 2025. Stateline’s Shalina Chatlani explains how 10 states are offering their own tax credits to protect residents from skyrocketing health care costs:

Under the Affordable Care Act, each state can either use the federal government’s online insurance marketplace, HealthCare.gov, or operate its own state-run exchange. Only the 21 states plus the District of Columbia with state-run marketplaces can offer state-funded tax credits or subsidies, and at least 10 of them (California, Colorado, Connecticut, Maryland, Massachusetts, New Jersey, New Mexico, New York, Vermont and Washington) are doing so. 

New Mexico leaders have tapped a state trust fund to replace the federal tax credits for all residents, regardless of income, through June 30. Here’s how they did it: 

The money in New Mexico’s Health Care Affordability Fund comes from a 3.75% surtax levied on insurance companies. When the fund was created, the surtax was expected to generate about $165 million in new revenue annually. Currently, the state uses nearly half of the revenue from the surtax to fund other parts of its budget. But the New Mexico House earlier this month approved a bill that would gradually increase the portion of the surtax allocated to the Health Care Affordability Fund, from the current 55% to 100% in 2028.

Pushing more data center costs to ratepayers

Louisiana utility customers could end up paying more than half of AI data center costs due to a recent policy passed by the state Public Service Commission. Paul Arbaje of The Equation explains how utility companies can qualify for the commission’s fast-tracked review process: 

Well, the two main substantive requirements are first, that the utility must have an electricity supply agreement with the data center with a minimum 15-year term, and second, that the data center must commit to covering at least half of the cost of that new power plant. Yes, just half. That begs the question: who would pay the other half? In all likelihood, other Louisiana ratepayers, who may not benefit at all from the data center.  And the kicker? It could end up being even more than half of the cost funded by everyday Louisianans’ utility bills

The many benefits of HBCUs

Historically Black colleges and universities have a proven track record of providing affordable, equitable academic opportunities that put graduates on a more prosperous socioeconomic path. Stateline’s Andrea Hagan explains another crucial benefit of HBCUs: 

By opening doors to education, jobs and mentorship, HBCUs disrupt the conditions that can cause young people — especially Black people — to get lost in the criminal justice system. … . When colleges and universities graduate students who earn middle-class incomes, they help break what researchers call the cycle of intergenerational poverty and incarceration. This pattern describes how children of incarcerated parents are six times more likely to end up in the justice system.

New Orleans’ toxic tap water

About 60% of the New Orleans homes that were tested over a three year period contained lead in their water. While the dangers of lead are known, the replacement of contaminated pipes has been slow. Verite News’ Halle Parker explains how legislative hurdles have hampered that effort:

To use the federal drinking water funding, the utility has to ensure the full replacement of lead lines at every property it works on. But currently, [S&WB Executive Director Randy] Hayman and [S&WB’s deputy general superintendent of water programs] Johnsey said a provision of the state constitution doesn’t allow public money to pay for replacing lead lines on private property.  

Expiring federal funding will also create challenges for removing lead pipes:

The 2021 Bipartisan Infrastructure Law dedicated $15 billion directly to lead line replacements across the country. That funding will end this year, though, and the Republican-led Congress recently redirected $125 million of the existing pool to wildfire prevention instead. 

Number of the Day

$49,191 – Out-the-door price of a new car or truck in December 2025. (Source: Cox Automotive via the Washington Post)