WASHINGTON, DC - 1 October 2026 - Health insurance in America has become so expensive that the budget of the common man has been ruined. In the meantime, President Donald Trump has made a big announcement. From 30 September 2026, he has started sending $500 checks to about 1 million Americans. This check will come directly to your mailbox from the Treasury Department, along with a letter signed by Donald Trump himself.
Trump announced this in a video on 10 September, which the White House posted on social media. This video came on the same day when the Republican midterm convention was being held in Dallas. Now, five weeks later, just before the midterm elections, these checks are being sent.
What did Trump write in the letter?
USA Today has seen the letter. In it, Trump wrote:
"Until now, the Biden administration charged you too much money to run http://HealthCare.gov. That money belongs to hardworking Americans, not the government, and now I'm returning it to you!"
.And the second line reads, "You've invested in this broken system, and now you're finally getting something back."
The White House says the Biden administration misappropriated this money.
What actually happened? Where did the money come from?
To understand this story, you need to understand the ACA's user fee.
Whenever you buy Obamacare insurance from http://HealthCare.gov, the insurance company has to pay a small fee to the government. This fee is used to run the exchange—such as maintaining a call center, website, and paying salaries to navigators who assist with enrollment.
This fee has been charged under every administration, whether it was Obama's, Trump's first term, or Biden's. However, the Trump administration alleges that during Biden's tenure, this fee was collected excessively, resulting in more money being collected than was needed to run http://HealthCare.gov. This extra money remained in the Treasury.
Now Trump is claiming that he is returning the extra money to the people who paid the premium out of their own pockets.
These checks are not new government spending, but rather the same surplus money that was previously accumulated. In total, approximately $500 million is being returned.
Who is eligible? Who is not? - This is the most important thing.
Not everyone who uses Obamacare will receive this $500. There are three conditions, all of which must be met:
Shard 1: You must live in one of 30 states.
Only states that use the federal exchange http://HealthCare.gov are eligible. These states are:
Alabama, Alaska, Arizona, Arkansas, Delaware, Florida, Hawaii, Indiana, Iowa, Kansas, Louisiana, Michigan, Mississippi, Missouri, Montana, Nebraska, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, South Dakota, Tennessee, Texas, Utah, West Virginia, Wisconsin, and Wyoming.
Shart 2: You must have purchased your 2026 plan from http://HealthCare.gov.
Your enrollment must be through the federal website.
Shart 3: You must have paid the full premium without a subsidy.
This is the biggest filter. If you receive a premium tax credit or any subsidy, you are not eligible.
According to KFF Health research, 87% of people will receive subsidies in 2026, compared to 92% in 2025. This means only 13% are paying the full amount without the subsidy. Of those, 950,000 are receiving these checks. These are middle-class families whose incomes are around 400% of the poverty line—a single person earns $64,000 and a family of four earns $132,000 annually. These people are considered too wealthy for subsidies, but insurance will still be very expensive for them.
Why won't people in California, New York, or Massachusetts receive them?
Many people are asking why California residents aren't receiving this benefit. The answer is simple.
In the US, 20 states and Washington, D.C., operate their own health exchanges. California's name is Covered California, New York's is its own, and larger states like Massachusetts, Colorado, and Connecticut also operate their own exchanges.
Because these states don't use http://HealthCare.gov, the federal government never collected this user fee from them. So, if the fee wasn't collected, how would they provide a refund? Therefore, no matter how high the premium is, anyone purchasing insurance through Covered California won't receive this $500 check.
How will they receive the check? Will they have to fill out any form?
No. There's no need to fill out any forms, apply, or visit any websites.
The White House has already identified who is eligible. The Treasury Department will send a check directly to your home. The check will include a letter from Trump. If two or three people in the same household are eligible, each person will receive a separate $500 check. This means a family could receive $1,000 or even $1,500.
Checks began shipping on September 30th and will reach everyone within two weeks of October 2026.
Connection to the Election?
It's also important to understand that these checks are being sent just five weeks before the midterm elections. The elections are in November, in which Republicans must retain their seats in Congress.
The biggest issues facing Americans right now are inflation and affordability. Health insurance premiums are rising 10-15% annually. The $500 check is also a political message during this time.
In addition, Trump has made another big promise: if Republicans control Congress in November, every American will receive a $5,000 dividend check. This is completely separate from the $500 check.
Beware of Scams
As soon as news of such checks spreads, scammers become active. Remember:
1. The government will never ask you for your bank account number over the phone or email for this check.
2. There's no need to click on a link or fill out a form.
3. The check will arrive directly by USPS mail.
4. If someone asks you to pay a $50 fee for $500, it's 100% fraud.
If you think you're eligible but don't receive a check by October 20th, check to see if the address on your account is correct at http://HealthCare.gov.
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