By executive order president Trump stopped ACA subsidies to state insurance exchanges. Given that this appears to have come out of left field, I would assume that funds were allocated for some amount of time into the future. What happens to those funds?
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Its an interesting question but is there any evidence to back up that assumption? (presumably, in some legislation approving the funding)– user4012Commented Oct 17, 2017 at 17:45
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There are several issues I'd question about the clarity of this particular question. (1) The question and the first sentence seem to suggest that "ACA subsidies": were were being paid out to the states and their insurance exchanges. -- I'm not sure that is correct. (2) I presume that the original poster was referring to the CSR (cost sharing reductions) subsidies, because that is what Trump ordered to be stopped. Perhaps the question could be clarified by being more specifc as to the subsidy and where those subsidies were sent previously (before EO).– BobECommented Oct 21, 2017 at 2:44
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I would assume that funds were allocated for some amount of time into the future.
This is untrue. The funds were never allocated. The government has just been spending them anyway. That's why Donald Trump could simply end them.
The United States is running a deficit. So the last money spent is borrowed. If they don't spend up to the deficit, they just won't borrow that money.
Of course, in this particular case, the expectation is that other, authorized expenditures will increase as a result of the elimination of this subsidy. So you could think of the money as being transferred there, with additional borrowing.