Federal Policy
New Federal Law Strips Medicaid From Legally Present Immigrants
Eligibility changes taking effect October 1 under the 2025 federal tax and budget law cut off Medicaid access for many lawfully present immigrants, including refugees, asylum seekers, and sex-trafficking victims. The Congressional Budget Office estimates 100,000 more immigrants will become uninsured by 2034 as a result, and a KFF Health News survey of nine states found many more people at imminent risk of losing coverage than that estimate suggests. KFF Health News reporter Andrew Jones discussed the changes and their effects on enrollees in the Washington, D.C., region in an October 21 interview with WAMU's "Health Hub." The law is projected to cut federal Medicaid spending by an estimated $900 billion through 2034.
Why it mattersState Medicaid agencies and community health providers must identify and transition affected immigrant enrollees to other coverage sources or uncompensated care before losses compound through 2034.