US District Judge Reed O'Connor in Fort Worth agreed with a coalition of 20 states that a change in tax law last year eliminating a penalty for not having health insurance invalidated the entire Obamacare law.
About $10 billion is at stake through a premium stabilization program. Insurers with healthier-than-average customers pay into the program, and the money goes to insurers with sicker patients. No taxpayer subsidies are involved.
The finance panel, which had been in session for two days, abruptly adjourned on Tuesday as Democrats slammed the Republicans' handling of their tax proposals, for which formal legislative language has still not been unveiled.
President Donald Trump said earlier he wanted lawmakers, once they completed a major tax reform effort, to again take up broader legislation that failed in the Senate last month that would divvy up federal healthcare money as block grants to states.
Donald Trump said at the dinner he was pleased Democrats had "finally responded to my call for them to take responsibility for their Obamacare disaster'' and were working with Republicans "to provide much-needed relief to the American people.''