President Donald Trump's announcement that a proposed White House ballroom could now cost as much as $400 million has sharpened scrutiny of the administration's priorities at a moment when millions of Americans face steep increases in health insurance premiums as pandemic-era subsidies near expiration.
Trump disclosed the revised cost estimate during a Hanukkah reception in mid-December, describing the ballroom as a privately funded "donation" that could host future inaugurations and major state events. The disclosure coincided with intensifying congressional debate over whether to extend enhanced Affordable Care Act subsidies that are scheduled to expire on Dec. 31, 2025.
The ballroom project, planned as a roughly 90,000-square-foot structure on White House grounds, would replace the historic East Wing, which has already been demolished. Administration officials have said the project will be financed through private donations and Trump himself, though critics argue the scale and location demand formal congressional oversight.
Legal opposition has mounted. The National Trust for Historic Preservation has filed a federal lawsuit alleging that required review and approval processes were bypassed. U.S. District Judge Richard J. Leon declined to issue a temporary restraining order halting construction, finding no immediate "irreparable harm," but cautioned that irreversible work could later be challenged. Further hearings are scheduled for January.
Carol Quillen, president and CEO of the National Trust for Historic Preservation, said the dispute is fundamentally procedural. She said the case centers on "the need to follow the law," arguing that independent review and public accountability were sidestepped.
While the ballroom debate plays out, health policy analysts warn of far-reaching consequences if Congress allows enhanced premium tax credits under the ACA to lapse. According to the Kaiser Family Foundation, the average annual premium paid by a marketplace enrollee could more than double in 2026, rising from $888 in 2025 to about $1,904 without congressional action.
Additional projections underscore the potential impact:
- The Congressional Budget Office estimates average ACA premiums could rise about 26% if enhanced credits expire.
- Expanded subsidies currently extend eligibility beyond 400% of the federal poverty level.
- Analysts at the Commonwealth Fund and Urban Institute warn millions could lose coverage.
Healthcare advocates argue that rising premiums would disproportionately affect low- and middle-income households already strained by housing, food, and medical costs. Human Rights Watch and Oxfam America have described the pending expiration as a threat to health access and financial stability.
Political pressure has intensified as budget negotiations remain gridlocked. Representative Mike Lawler of New York has pushed back against dismissals of affordability concerns, criticizing claims that rising costs are a "hoax" and warning that health care expenses are central to household insecurity.
Employer-sponsored insurance costs are also climbing. In 2025, average family premiums approached $26,993, according to independent analyses, continuing a trend of increases outpacing wage growth.
