Republican funding cuts could include blocking Deferred Action of Childhood Arrival (DACA) recipients from enrolling in Affordable Care Act (ACA) health coverage. Former President Joe Biden expanded coverage to include them in May 2024.
Why It Matters
Before the May 2024 expansion, individuals with DACA status were not eligible for any health coverage funded by the federal government—meaning roughly 530,000 DACA recipients across the U.S. couldn't get coverage unless through alternative means like employer-sponsored or private insurance.
It's estimated that 50 percent of undocumented immigrants in the U.S. were uninsured as of 2023, per data collected by the Kaiser Family Foundation (KFF).
This eligibility extension was part of a broader effort to provide DACA recipients with health coverage, with the intent to improve access to care and financial security. Approximately 100,000 uninsured DACA recipients were expected to enroll thanks to this extension.
What To Know
On May 3, 2024, the Biden-Harris Administration expanded ACA Marketplace eligibility to Deferred Action for Childhood Arrivals (DACA) recipients, enabling them to purchase health coverage with premium tax credits and cost-sharing reductions. It also extended eligibility to the Basic Health Program (BHP), a program geared toward low-income individuals in Minnesota and New York.
Extended eligibility began November 1, 2024, on day one of the 2025 Open Enrollment Period and lasted through January 15, 2025. However, ongoing litigation resulted in eligibility restrictions.
In December, a court ruling blocked the implementation of new regulations in 19 states that allowed DACA recipients, or "Dreamers," to secure Affordable Care Act (ACA) health coverage.
The lawsuit, led by Kansas Attorney General Kris Kobach and backed by a group of 19 GOP-governed states, argued that DACA recipients should not be considered "lawfully present" and therefore not eligible for health insurance through the ACA.
The suit also asserted that opening up eligibility could lead to increased costs and administrative burdens on the health care system.
The U.S. government expected to spend an additional $240 to $300 million annually on premium tax credits from 2025 to 2028, per the KFF, and an additional $5 million each year due to more people enrolling in BHPs. Despite these increased costs, the expansion could also have positive economic effects, such as improved health outcomes and increased productivity from these populations.
To fund a reconciliation package, Republicans are looking at ways to cut funding in other areas and DACA health coverage is on the chopping block. Repealing the expansion would save $6 billion over 10 years, according to a draft of proposed cuts obtained by The New York Times.
What People Are Saying
Nicholas Espíritu, deputy legal director of the National Immigration Law Center (NILC), said in a statement regarding the December ruling: "Judge Traynor's ruling is both disappointing and wrong on the law. While we study the court's ruling to evaluate the next steps in this case, we will continue to fight on behalf of our clients and hundreds of thousands of DACA recipients who have been waiting over a decade to access life-sustaining care under the Affordable Care Act."
Kansas Attorney General Kris Kobach said in a statement last August: "Illegal aliens shouldn't get a free pass into our country. They shouldn't receive taxpayer benefits when they arrive, and the Biden-Harris administration shouldn't get a free pass to violate federal law. That's why I am leading a multistate lawsuit to stop this illegal regulation from going into effect."
Virginia Attorney General Jason S. Miyares said in an August press release: "Once again, the Biden-Harris administration has shown a blatant disregard for the rule of law. I will continue protecting Virginia taxpayers from the consequences of the unlawful federal actions."
Congressman Joaquin Castro (TX-20) said in a May 2024 statement: "Over the last twelve years, DACA has allowed hundreds of thousands of first-generation Americans to graduate from college, join the workforce, and chase their American dreams in the only country many have ever known. Throughout that time, these young Americans have been asked to work and pay taxes to support a system of affordable health care that excluded them. Today's announcement is an important step to right that wrong."
George Escobar, chief of programs and services with CASA, an immigrant advocacy group, told Maryland Matters in October: "Through this new rule change that HHS has promulgated, it opens up DACA as an eligible immigration status that would allow them to access into the marketplace now... And more importantly, eligible for subsidies that make those plans affordable."
What Happens Next
Cuts will have to get the approval of Republicans in the House of Representatives and with a slim majority, any GOP member could potentially kill the bill.
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