Healthcare Subsides Expire, Trump and Minnesota, Mamdani Takes Office In NYC

Summary

Up First from NPR – January 1, 2026

Episode Title: Healthcare Subsidies Expire, Trump and Minnesota, Mamdani Takes Office In NYC
Hosts: A Martinez, Michel Martin
Date: January 1, 2026

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Episode Overview

Today's episode dives into the expiration of pandemic-era healthcare subsidies and what this means for millions of Americans, the Trump administration's freezing of childcare funds following unsubstantiated allegations in Minnesota, and the historic inauguration of New York City's new mayor, Zoran Mamdani. The hosts are joined by reporters and analysts who break down the political, economic, and social impacts of these stories as the U.S. enters 2026.

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1. Affordable Care Act Subsidies Expire: Cost Spike & Political Fallout

Main Points & Discussion

• Expiration of Expanded Subsidies
  • Congress’s pandemic-era healthcare subsidies, which made coverage more affordable for ACA users, expired at midnight, driving premiums up.
• Immediate Impact
  • Millions now face significantly higher monthly bills (over double) or may lose coverage if they can’t afford it.
  • About 4.8 million could drop coverage due to cost ("sticker shock").
• Enrollment Trends
  • Enrollment is lower than December 2025 but still higher than expected; many auto-enrolled may be unaware of premium increases.

Key Insights

• “This is kind of like the difference between putting groceries in your shopping cart and actually purchasing them… You can sign up, you can pick a plan, but until you pay for it, it’s not your health plan.”
  — Sarah Bowden, Health Reporter (03:19)

• The deadline to select or change plans in most states is January 15 for coverage beginning in February.

• Some are switching to lower-premium, higher-deductible plans — a risky financial gamble for those who rarely visit the doctor.

Political Angle

• Potential for a partisan deal to restore subsidies, but GOP lawmakers seek tradeoffs (e.g., health savings accounts or abortion restrictions).
• Legislative gridlock seems likely, especially in the Senate.

Timestamps

• 02:32: Segment begins; price increases explained.
• 04:06: Legislative outlook and political deals discussed.
• 05:00: Tips for consumers navigating new, higher rates.

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2. Federal Childcare Funding Freeze & Minnesota Politics

Main Points & Discussion

• Federal Funding Withheld
  • The U.S. Department of Health and Human Services froze federal childcare dollars after Trump officials responded to a viral video alleging, without evidence, that Somali-run daycares in Minneapolis committed massive fraud.
• Background & Context
  • The viral accusations (amplified by prominent right-wing figures and Elon Musk) were not supported by evidence but fueled federal action.
  • Trump issued racist statements targeting Somali communities.
  • ICE increased activity in Minneapolis in recent weeks.
• Real-World Effects
  • Over 1.4 million children (857,000+ families) nationally receive subsidies; about 23,000 children use Minnesota’s program monthly.
  • Immediate impact threatens low-income families’ child care stability.

Notable Quotes

• “Many of the families at my center are one paycheck away from becoming homeless. I’m not exaggerating. If child care assistance is turned off, children can’t come to care.”
  — Maria Snyder, St. Paul Childcare Director (08:11)

Political Fallout

• Minnesota Governor Tim Walz (Democrat) is running for a third term and finds himself at the center of the political storm.
• State Republicans took credit for steering the influencer to the daycares and plan a highly publicized hearing next week.
• Governor Walz’s office: “Fraud is a serious issue, but this is a transparent attempt to politicize the issue to hurt Minnesotans and defund government programs that help people.” (09:47)

Timestamps

• 05:54: Story introduction.
• 07:31: Scope and impact of funding freeze.
• 08:48: State political response and Governor’s vulnerability.

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3. Zoran Mamdani: New York City's Historic Mayor

Main Points & Discussion

• Inauguration
  • Zoran Mamdani becomes NYC's youngest and first Muslim mayor; private swearing-in at an historic subway station, public events scheduled later.
  • His parents are Indian; he spent early years in Uganda before moving to NYC.
• Political Shift
  • Represents a sharp left turn from former Mayor Eric Adams (a conservative Democrat, recently exited amid a corruption probe).
  • Mamdani is a prominent member of the Democratic Socialists of America (DSA), which heavily backed his campaign.

Memorable Moments

• “So help me God. Congratulations, Mr. Mayor.”
  — Letitia James, New York State Attorney General, swearing in Mamdani (10:20)

• “Among those he defeated was outgoing Mayor Adams, who is leaving office under a bit of a cloud. He faced federal corruption charges that were dismissed at the direction of President Trump’s Justice Department earlier this year.”
  — Bridget Bergen, WNYC (11:03)

• National DSA figures, including Alexandria Ocasio-Cortez (opening remarks) and Bernie Sanders (public swearing-in), will feature at Mamdani's ceremony.

Inauguration Day Festivities

• A block party with tens of thousands of people along Broadway’s “Canyon of Heroes.”
• Frigid weather forecast: “About 26 degrees at the time of the ceremony, but with the wind, it’s gonna feel like about 12.” (13:04)

Timestamps

• 10:07: NYC mayoral transition introduction.
• 11:11: DSA values and sharp differences with past administrations.
• 12:22: Event logistics and public access.

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Noteworthy Quotes & Moments

• Healthcare:
  “It is a lot of money, but it can be an okay option for people who are healthy and don’t go to the doctor too much. It’s a gamble.”
  — Sarah Bowden, Health Reporter (05:34)

• Childcare Crisis:
  “ICE has already ramped up its presence in the Twin Cities through the month of December as well.”
  — Clay Masters, Minnesota Public Radio (07:20)

• NYC Politics:
  “It’s a historic day. But at 34 years old, Mamdani is the youngest mayor of New York… He’s the first Muslim mayor, he’s an immigrant New Yorker…”
  — Bridget Bergen, WNYC (10:45)

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Segment Timestamps Overview

| Segment | Start | Key Moments | |-------------------------------------------|----------|-------------------------| | ACA Subsidies Expire | 02:32 | 03:09, 04:06, 05:00 | | Childcare Funding Freeze in Minnesota | 05:54 | 07:31, 08:11, 09:47 | | Zoran Mamdani NYC Inauguration | 10:07 | 10:45, 11:11, 12:22 |

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Conclusion

This fast-paced Up First episode recaps three of the day’s pivotal stories: millions face healthcare sticker shock and possible disenrollment as ACA subsidies lapse, political maneuvering and social media-fueled controversy pause vital childcare aid in Minnesota, and a new, youthful, and progressive era begins in New York City. Each story is shaped by this election year's broader political and cultural battles, with on-the-ground voices illuminating the impact on American lives.

Transcript

[A]

Hey, Michelle. It feels like 2026.

[B]

It's it really. It feels like the continuation of a long 2025. But happy new Year to you.

[A]

You too. You too, Michelle. Now, very quick, before we start the show, we want to say a big thanks to everyone who donated during NPR's end of year fundraising campaign.

[B]

Yes. And thank you also to our NPR supporters.

[A]

Yeah, Public radio is yours. And thanks to you, we're starting the new year strong even as the NPR network enters its first full year without federal funding for public media.

[B]

Thank you again for your moving into 2026 and beyond. 2025 is gone, and so are pandemic era subsidies for people who rely on the Affordable Care Act.

[A]

That means higher monthly bills for millions of people and tough choices about health insurance coverage.

[B]

I'm Michelle Martin. That's a Martinez. And this is up first from NPR News. The Trump administration froze federal childcare funding after a right wing influencer went viral accusing Somali run daycares of FR providers are warning the impact could be immediate.

[C]

Many of the families at my center are one paycheck away from becoming homeless. I'm not exaggerating.

[B]

What are the politics behind the White House move?

[A]

And New York City has a new mayor. Zoran Mamdani was sworn in just after midnight in a historic subway station. What's next on his agenda? Stay with us. We'll give you the news you need to start your day.

[D]

This message comes from Mint Mobile. This holiday season, stop overpaying for wireless and switch to Mint Shop. 50% off unlimited [e-mail] Switch limited time. Offer upfront payment of $45 for three months, $90 for six months or $180 for 12 months. Taxes and fees Extra initial plan term only above 35 GB. Network may slow when busy. Capable device required. Availability, speed and coverage varies. See mintmobile.com this message comes from Mint Mobile. This holiday season, stop overpaying for wireless and switch to Mint Shop. 50% off unlimited [e-mail] Switch limited time offer upfront payment of $45 for three months, $90 for six months or $180 for 12 months. Taxes and fees. Extra initial plan term only above 35gb network may slow when busy. Capable device required. Availability, speed and coverage varies.

[A]

See mintmobile.com Health insurance is way more expensive this year for millions of Americans who purchase coverage through the Affordable Care Act.

[B]

Many people get government subsidies to help pay their monthly premium for that insurance. During the COVID pandemic, Congress created additional subsidies to help keep coverage affordable but those additional subsidies expired last night, and now consumers face a hard choice. On average, premiums for those marketplace plans are more than twice as high compared to 2025.

[A]

Health reporter Sarah Bowden joins us now to discuss what comes next. So, Sarah, higher premiums, what's enrollment looking like so far?

[E]

Yeah, so preliminary data from December show that enrollment is down a bit compared to last December, but overall it is higher than expected. I spoke with Cynthia Cox at the health policy think tank kff, and she says that all of us need to realize that these numbers will probably change. This is kind of like the difference between putting groceries in your shopping cart and actually purchasing them. So you don't actually own those groceries until you've paid for them. The same thing with health insurance. You can sign up, you can pick a plan, but until you pay for it, it's not your health plan. So what she's watching for is how many people will keep their coverage. And a lot of people were automatically re enrolled in the same policy, but now have a higher premium. But they might not know that yet. So sticker shock is coming. It's estimate that 4.8 million people will drop their coverage because they can't pay for it.

[A]

Yeah, and health care costs are a big political issue right now. I mean, it is an election year, after all. So, I mean, is there any chance that this could change?

[E]

You know, there is some discussion between Democrats and moderate Republicans to extend the subsidies. And if they did, they could make them retroactive. But many Republicans won't vote for it without getting something in return. For example, Republicans have suggested that people should set up health savings accounts to save up for emergencies. Others said they potentially support extending the subsidies in exchange for new restrictions on abortion. But these ideas have not gotten very far at all. And even if a compromise got through the House, the Senate would be tougher.

[A]

Yeah, you know, looking at the numbers, Sarah, 24 million Americans get their plans through the marketplace. I mean, so what are their options if they can't afford the new premium but don't want to be uninsured?

[E]

The first step, if you haven't already, is go and see exactly how much you're set up to pay this year. Because if you don't like that number, you probably still have time to switch policies. In most states, the final deadline to sign up for a plan for 2026 is January 15th. That coverage would start in February. And I've spoken with people who have chosen plans with lower premiums but higher out of pocket costs. So, for instance, a deductible of 7 or 8,000 dol.

[A]

Oh, man, that's a big ouch. That'll hurt.

[E]

It is a lot of money, but it can be an okay option for people who are healthy and don't go to the doctor too much. It's a gamble.

[A]

Yeah, absolutely. That's health reporter Sarah Bowden. Sarah, thank you very much for joining us.

[E]

Thanks for having me.

[A]

The U.S. department of Health and Human Services says it's freezing federal funding meant to help low income families pay for childcare.

[B]

The move comes just days after the Trump administration singled out Minnesota following a video from a conservative influencer going viral. The influencer claimed without evidence that daycare centers operated by Somali residents in Minneapolis had committed up to $100 million in fraud.

[A]

Minnesota Public Radio's Clay Masters joins us now from St. Paul. Clay, back in the Biden administration, federal prosecutors launched major fraud cases against mostly Somali American defendants. And there are state investigations as well. So what's new with what's going on now?

[F]

Yeah, I mean, we've been covering those criminal cases not just about daycare facilities, but also fraud tied to Medicaid cases that have led to convictions. But this latest move from the Trump administration started over the Christmas holiday when an online influencer with ties to the MAGA world alleged that several daycare centers run by Somali immigrants were taking public money without providing care. The man can be seen going up to various centers, knocking on doors and asking to see the children that go to the daycare centers. It was posted on the social media site X and then reposted by the likes of Vice President JD Vance SpaceX and Tesla CEO Elon Musk. It also comes following racist comments from President Donald Trump accusing Somali communities here in Minnesota of widespread fraud. He called them, quote, garbage and talked about deporting Congresswoman Ilhan Omar, who is a US Citizen. Immigration and Customs Enforcement has already ramped up its presence in the Twin Cities through the month of December as well.

[A]

Okay. Now, the Trump administration response was to withhold childcare funding in all states for some people. So what does that mean?

[F]

I mean, it could be really bad news for families with kids. This applies to the Child Care and Development Fund, which provides monthly child care subsidies to low income families. Nationwide, approximately 1.4 million children and over 857,000 families per month receive child care assistance in 2019. Now, 2019, that's the latest information on the government website. In Minnesota, where I am, 23,000 children use the child care assistance program each month. Here's Maria Snyder, a St. Paul child care director at a press conference yesterday.

[C]

Many of the families at my center are one paycheck away from becoming homeless. I'm not exaggerating. If child care assistance is turned off, children can't come to care.

[F]

And a spokesman for Health and Human Services says the agency could unfreeze funding after state agencies provide certain, quote, unquote, administrative data. The deputy secretary said that could include receipts and photo evidence. Meanwhile, Minnesota Attorney General Keith Ellison says his office is exploring all legal options to ensure that critical child care services do not get abruptly slashed based on what he calls pretext and grandstanding.

[A]

Okay, Minnesota Governor Tim Walz is the former Democratic vice presidential candidate. How does he fit into all this?

[F]

Well, yeah, I mean, this is all definitely political, too. Governor Walz announced he's running for a third term this new year, and this is the issue he is likely most vulnerable on. He has a lot of Republican challengers, including Minnesota's Republican speaker of the House, Lisa Damuth Daymuth told reporters this week that her House caucus steered the YouTuber to the daycare sites in Minnesota. In a statement after the childcare funding freeze, a spokesman for Governor Wall said he's been combating fraud for years while the president has been letting fraudsters out of jail. The statement goes on to say fraud is a serious issue, but this is a transparent attempt to politicize the issue to hurt Minnesotans and defund government programs that help people. So I don't expect this to quiet down anytime soon here in Minnesota in this election year where Republicans think they have a shot at the state's top job. In fact, next week, the Republican led House Committee on Oversight and Government will hear from Republican state lawmakers here and they have invited Governor Walz and Attorney General Ellison to attend as well.

[A]

That's Clay Masters of Minnesota Public Radio. Thanks, Clay.

[F]

My pleasure.

[A]

New York City has a new mayor.

[B]

Just after midnight, Zoran Mamdani was formally sworn in at a small private ceremony held underground at an historic subway station. New York State Attorney General Letitia James conducted the oath.

[F]

So help me God. Congratulations, Mr. Mayor.

[A]

This was just the first event for Mamdani's historic inauguration. Member station WNYC's Bridget Bergen will be covering the events later today, joins us now with a preview. So, okay, public inauguration this afternoon. And really he was one of the biggest stories in 2025. But for people that are just catching up, tell us about Zoran Mamdani.

[C]

Yeah, you're right. It's a historic day. But at 34 years old, Mamdani is the Youngest mayor of New York, really, in the modern era. He's the first Muslim mayor. He's an immigrant New Yorker. His parents are both from India, but he spent the early part of his childhood in Uganda before his family moved to New York City. And really, politically, Mamdani represents a shift from his predecessor, Eric Adams, who was a far more conservative Democrat.

[A]

Yeah, let's get into that shift, because Mamdani is not just a Democrat, he's a Democratic Socialist. So how might that affect his priorities?

[C]

So Mamdani is a member of the Democratic Socialists of America, or dsa. He calls the group his political home. It's a membership organization with chapters across the country. It's not a political party. It helped inform his campaign platform. Things like making buses fast and free and providing universal childcare. The group also helped him recruit thousands of volunteers for his winning campaign. Among those he defeated was outgoing Mayor Adams, who is leaving office under a bit of a cloud. He faced federal corruption charges that were dismissed at the direction of President Trump's Justice Department earlier this year. Mamdani has included some of the most prominent national figures with ties to the dsa. In today's ceremony, Representative Alexandria Ocasio Cortez will deliver opening remarks, and then Vermont Senator Bernie Sanders will conduct the public swearing in.

[A]

So DSA All Stars, essentially, right? Yeah, that's right.

[D]

Yeah.

[A]

He was known for cultivating really enormous grassroots support for his campaign. So can any New Yorker just show up at today's event?

[C]

Well, there will be several thousand people at a ticketed event outside City hall, which, for anyone who's visited New York, sits just on the Manhattan side of the Brooklyn Bridge. But there also is going to be this huge block party with tens of thousands more people that's going to span several blocks along Broadway where people will be able to watch a live feed of the ceremony and really be part of the celebration. It's going to be on a part of the street known as the Canyon of Heroes, where you might see a ticker tape parade like when the New York Liberty became WNBA champions in 2024. Space is still limited, though, so people needed to RSVP to get into that area. And really, a no matter where you're watching, if you're going to be outside, it's going to be time to bundle up. The actual temperature will be about 26 degrees at the time of the ceremony, but with the wind, it's gonna feel like about 12.

[A]

That's why I live in Los Angeles. Good luck staying warm out there. That was WNYC's Bridget Bergen in New York. Thanks a lot.

[C]

Thank you.

[A]

And that's up first for Thursday, January 1st. Happy New Year. I'm Amy Martinez.

[B]

And I'm Michelle Martin. Up first gets you caught up, and MORNING EDITION takes you deeper. We are live every morning on your local NPR station with reporting, interviews and the context behind the headlines. And if you want to listen in the afternoon, you can do that, too. Download the NPR app and listen anytime. There's so many options to get you the news you need to start your day.

[A]

Today's episode of up first was edited by Carrie Feible, Cheryl Corley, Andrea De Leon, Mohamed El Bardisi and Alice Wolfley. It was produced by Ziad Butch, Katie Klein and Christopher Thomas. We get engineering support from Stacey Abbott. Our technical director is David Greenberg. Our deputy executive producer is Kelly Dickens. Join us again tomorrow.

[D]

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