The U.S. Treasury Department and IRS on Wednesday released proposed regulations that would tighten eligibility checks for federal health insurance tax credits and update the rules for repaying excess advance subsidies.

The proposal implements provisions of the 2025 tax law, which the administration calls the Working Families Tax Cuts. The Premium Tax Credit helps eligible taxpayers pay for health insurance purchased through an Affordable Care Act marketplace.

Under the law’s changes taking effect in 2027, the credit will remain available to eligible U.S. citizens and U.S. nationals, but eligibility for lawfully present noncitizens will be limited to the categories specified in the law. Being lawfully present alone will no longer be enough to qualify for the credit.

Beginning in 2028, the proposal would require marketplaces to verify an enrollee’s eligibility for coverage and any advance tax credit before a month of coverage can count toward the credit. The checks would cover information including income, family size, residency and citizenship or immigration status. Treasury said related changes to marketplace procedures are expected to be addressed in a separate HHS proposal.

The regulations also reflect the removal of limits on repayment of excess advance credits for tax years after 2025. Taxpayers whose advance subsidies exceed the credit they ultimately qualify for must repay the full excess amount, rather than relying on the previous income-based repayment caps.

“The proposed rules protect eligible taxpayers while strengthening the integrity of the Premium Tax Credit,” IRS Chief Executive Officer Frank J. Bisignano said in the announcement.

The regulations are proposed, not final. They are scheduled for publication in the Federal Register on October 15, with a 45-day public comment period and a telephonic public hearing scheduled for December 8.