The Obama Administration argued that the authority for it to hand billions of dollars to insurance companies for so-called “cost-sharing reductions” could be inferred from the Obamacare statute. But the court completely rejected Obama’s argument, explaining that a specific congressional appropriation is needed before the executive branch can spend taxpayer dollars. Insurance companies have already been fleeing the Obamacare health insurance exchanges because they are such big money-losers. These cost-sharing Obamacare subsidies were expected to cost taxpayers $175 billion over 10 years. The spending by Obama on these subsidies “violates the Constitution,” the court ruled. “Congress authorized reduced cost sharing but did not appropriate monies for it,” the court added. “Congress is the only source for such an appropriation, and no public money can be spent without one.” This case is a major win for American taxpayers. While the Obama Administration is expected to challenge this ruling on appeal, it is refreshing for a federal court to rule against unauthorized spending by the federal government.
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