House GOP Aims to Cut Billions From States Providing Free Healthcare to Illegal Migrants

New Medicaid Proposal by House Republicans Targets Funding for Illegal Immigrant Healthcare

House Republicans have unveiled a Medicaid plan that aims to reduce federal funding for state programs offering taxpayer-funded health insurance to illegal immigrants significantly.

In the proposal, states that extend Medicaid or similar healthcare services to illegal immigrants could face billions in lost federal funds. Currently, seven states—California, New York, Illinois, Oregon, Washington, Colorado, and Minnesota—provide state medical benefits to non-citizens.

Even though federal law stops non-citizens from receiving Medicaid, some blue states have implemented alternative programs mimicking the federal system. California was the first to establish such a system; its health plan for illegal immigrants, under the MEDI-CAL program, offers full coverage to those under 50 who meet income criteria, regardless of their immigration status. Last year, this initiative had a significant financial impact, providing over $9.5 billion in medical benefits to about 1.5 million illegal immigrants.

The Republican plan could greatly increase financial burdens for these states. Currently, the federal government covers 90% of Medicaid expansion costs, with states picking up the remaining 10%. The new proposal suggests that states covering non-citizens would see that split shift to 80% federal funding, leaving those states responsible for 20% of the costs, according to reports.

In California, Medicaid expansion costs alone were around $3.8 billion last year, a $600 million increase from the year before. With the proposed federal funding cuts, the costs for providing health benefits to illegal immigrants could exceed $12 billion annually, and these figures are expected to continue climbing.

Currently, California is grappling with a budget deficit of at least $10 billion, a shortfall projected to rise to $30 billion by 2028, much of which stems from the state’s Medicaid program.

Governor Gavin Newsom has had to tap into the state’s reserve fund to support the MEDI-CAL program, with $6 billion allocated in just this year alone. The state’s reserves have reportedly dipped below $20 billion.

Republican lawmakers in the state have criticized Newsom’s spending priorities, arguing that illegal immigrants are being prioritized over American citizens. Senate Minority Leader Brian Jones commented earlier this year that Democrats and the governor favor those who have entered the country illegally over citizens.