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Republicans aim to punish states that insure unauthorized immigrants

  • The House passed a reconciliation bill on May 22, 2025, targeting states that offer state-funded health insurance to unauthorized immigrants in the U.S.
  • The bill aims to reduce federal Medicaid reimbursements by 10 percentage points for states providing financial assistance to these immigrants, prompting some states to consider ending such programs.
  • Fourteen states, mostly Democratic-led, currently fund health benefits for an estimated 1.9 million unauthorized immigrants, often children, risking billions in lost federal funds and increased uninsured rates.
  • A preliminary Congressional Budget Office estimate projects nearly 14 million uninsured people by 2034 under the bill, including a net 7.6 million newly uninsured, with Medicaid cuts disproportionately affecting low-income Americans.
  • States like California and Utah warn the legislation could devastate healthcare systems and budgets, with some officials planning legal challenges or budget adjustments to counter the federal funding cuts.
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CBS News broke the news in on Friday, May 23, 2025.
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