FOR IMMEDIATE RELEASE:
July 14th, 2025
Contact: Press_Paul@paul.senate.gov, 202-224-4343
Dr. Rand Paul Introduces Bill to End Medicaid Payments for Illegal Aliens Immediately
Washington, D.C. – U.S. Senator Rand Paul (R-KY) has introduced the Excluding Illegal Aliens from Medicaid Act, legislation to immediately end states’ practice of exploiting federal tax dollars to provide health benefits for illegal aliens. This legislation would also remove Medicaid eligibility for the influx of parolees admitted in the U.S. by former President Biden and Vice President Harris, effective immediately. Under the Excluding Illegal Aliens from Medicaid Act, the enhanced Federal Medical Assistance Percentage (FMAP) rate granted under Obamacare expansion would end for any state that provides Medicaid benefits to illegal aliens, forcing them to revert to the traditional cost-sharing rate.
Several states are still cashing in on Obamacare’s generous 90% federal Medicaid match while covering illegal aliens. This bill would close that loophole by revoking enhanced federal funding for any state that continues to cover those individuals on Medicaid.
“The One Big Not-So-Beautiful Bill has been signed into law, but there’s a ridiculous delay until October 2026 before certain noncitizens are finally removed from Medicaid,” said Dr. Paul. “That’s unacceptable. Taxpayers should not pay for the healthcare of those people who are in the country illegally or not eligible for Medicaid.”
A House companion bill is being introduced by Rep. Greg Steube (R-FL).
“Medicaid should only be for American citizens, not those who intentionally break our laws. Several states are abusing loopholes in federal tax law to waste money on healthcare handouts for illegal aliens. Rewarding criminals with benefits paid for by law-abiding Americans is unfair, expensive, and flat-out wrong. That is why Senator Paul and I are fighting to keep Medicaid for Americans only,” said Representative Greg Steube (R-FL).
Dr. Paul’s bill steps in to correct that mistake and make the policy effective immediately and end the generous federal subsidies for states supporting illegal immigrants.
Read the bill HERE.
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