Healthcare Subsides Expire, Trump and Minnesota, Mamdani Takes Office In NYC - Up First Recap
Podcast: Up First
Published: 2026-01-01
Duration: 13 minutes
Guests: Sarah Bowden, Clay Masters, Bridget Bergen
Summary
The expiration of pandemic-era ACA subsidies leads to higher health insurance costs for millions. The Trump administration freezes child care funding in Minnesota, citing unproven fraud claims. Zoran Mamdani is inaugurated as New York City's new mayor.
What Happened
Millions of Americans face higher health insurance costs as pandemic-era subsidies for the Affordable Care Act expire. During the pandemic, Congress had provided additional subsidies to keep health coverage affordable, but with these subsidies gone, premiums are now more than twice as high as they were in 2025.
Health reporter Sarah Bowden explains that many people may drop their coverage due to the increased costs. Preliminary data shows a slight drop in enrollment compared to last December, but it's still higher than expected. There are ongoing discussions in Congress about potentially reinstating these subsidies, though negotiations are proving difficult.
The Trump administration has frozen federal child care funding, citing unproven fraud claims tied to Somali-run day care centers in Minnesota. This decision could severely impact low-income families who rely on subsidies from the Child Care and Development Fund, affecting approximately 1.4 million children nationwide.
Clay Masters from Minnesota Public Radio notes that the situation is politically charged, with Minnesota Governor Tim Walz facing criticism from Republican challengers. The freeze has sparked debates about fraud and the politicization of child care funding.
In New York City, Zoran Mamdani has been sworn in as the new mayor, becoming the youngest and first Muslim mayor of the city. His inauguration took place at an historic subway station, with a public event and a large block party planned.
Mamdani, a Democratic Socialist, represents a shift from his predecessor Eric Adams. His priorities may include policies influenced by the Democratic Socialists of America, with whom he has significant ties. The inauguration ceremony is set to draw thousands, highlighting the widespread support Mamdani has cultivated.
Key Insights
- Pandemic-era subsidies for the Affordable Care Act have expired, causing health insurance premiums to more than double compared to 2025 levels. This increase may lead to a decline in coverage as individuals struggle with higher costs.
- Federal child care funding has been frozen due to unproven fraud claims linked to Somali-run day care centers in Minnesota, potentially affecting 1.4 million children nationwide who rely on subsidies from the Child Care and Development Fund.
- The freeze on child care funding has created a politically charged atmosphere in Minnesota, with Governor Tim Walz facing criticism from Republican challengers amid debates over fraud and the politicization of funding.
- Zoran Mamdani has been inaugurated as New York City's youngest and first Muslim mayor. His leadership marks a shift from his predecessor, with potential policies influenced by his ties to the Democratic Socialists of America.