Late Thursday night President Trump announced he plans on stopping the Obama subsidy payments to insurance companies. The reason for the stoppage was a May 2016 federal court ruling that the payments were unconstitutional. In her ruling, U.S. District Court Judge Rosemary Collyer wrote that then-President Obama and his administration ignored constitutional limits on executive authority and congressional control of the purse strings.
Congress authorized reduced cost-sharing but did not appropriate monies for it. The Constitution says “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law,” Collyer noted, but the administration has continued to pay billions to insurers for their extra cost of providing health coverage.
“Paying [those] reimbursements without an appropriation thus violates the Constitution,” she wrote. “Congress is the only source for such an appropriation, and no public money can be spent without one.”
The President’s decision was based