Three Democrat States Slash Medicaid For Undocumented Immigrants Citing Budget Strains

Three Democrat-led states have decided to revoke or limit health coverage for immigrants without legal status, a move that could have significant consequences for the affected individuals and the healthcare system at large.

What Happened: The states of California, Illinois and Minnesota have recently made the decision to end or reduce health coverage for immigrants without legal status, reported the Associated Press. This change will affect hundreds of thousands of immigrants.

The programs have proven to be much more costly than initially projected, a significant concern given the states’ current and future multibillion-dollar deficits. As a result, Illinois, Minnesota, and California have opted to cut back on the programs to save money.

Adult immigrants aged 42 to 64 without legal status in Illinois have been cut off from health care, resulting in estimated savings of $404 million. In Minnesota, all adult immigrants have been removed from the state program, saving nearly $57 million. California plans to halt new adult enrollments starting in 2026, projecting savings of over $3 billion over several years.

These cuts — backed by Democratic governors who once championed expanded health coverage for immigrants — are already discouraging people from seeking care, largely out of fear of arrest or deportation.

Health care providers have raised concerns about the effects of these cuts, especially the risk that fear of arrest or deportation may prevent immigrants from seeking medical care. This avoidance of preventive services could ultimately result in higher long-term costs, as more immigrants may require treatment at safety-net hospitals.

Why It Matters: The decision to cut health coverage for immigrants without legal status comes at a time when the Trump administration has been taking steps to tighten immigration policies and enforcement.

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Earlier this month, the Trump administration announced that undocumented immigrants would no longer be eligible for various federal programs, including the Head Start program and several other federal benefits and programs. This decision, combined with the recent cuts in health coverage, could have a significant impact on the well-being of immigrants without legal status.

Moreover, the Trump administration’s decision to share 79 million Medicaid recipients’ private health data with Immigration and Customs Enforcement (ICE) has sparked legal challenges from several states, including California. The recent cuts in health coverage for immigrants without legal status may further exacerbate the already contentious relationship between the federal government and these states.