Judge Rules Trump Does Not Have To Pay ‘Unconstitutional’ Obamacare Subsidies


U.S. District Judge Vince Chhabria of California preliminary rejected a lawsuit Wednesday from states challenging the Trump administration’s decision to stop paying out Obamacare subsidies.

“Although the case is at an early stage, and although it’s a close question, it appears initially that the Trump Administration has a stronger legal argument. Second, and more importantly, the emergency relief sought by the states would be counterproductive,” Chhabria wrote in the decision.

Some 18 states and the District of Columbia asked for the federal court in California to order the administration to fund Obamacare subsidies, also known as cost-sharing reductions (CSRs).

“State regulators have been working for months to prepare the termination of these payments. And although you wouldn’t know it from reading the states’ papers in this lawsuits, the truth is that most state regulators have devised responses that give millions of low-income people better health coverage over options than they would have otherwise had,” the judge wrote.

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