Three Democrat-Led States Cut Medicaid for Undocumented Immigrants Amid Budget Strains

Three Democrat-led states—California, Illinois, and Minnesota—have recently rolled back or limited Medicaid coverage for low-income immigrants without legal status due to higher-than-expected program costs and ongoing multibillion-dollar state budget deficits. Illinois cut coverage for undocumented adults aged 42-64, saving an estimated $404 million, Minnesota ended coverage for all adult undocumented immigrants, saving nearly $57 million, and California plans to stop new adult enrollments in its Medi-Cal program starting in 2026 to save over $3 billion. These policy reversals, supported by Democratic governors who previously expanded immigrant health coverage, have raised concerns among healthcare providers about increased untreated illnesses and potential long-term costs due to deferred care and reliance on emergency services. Community clinics serving immigrant populations report a surge in patients seeking care before losing coverage, while federal restrictions on treating uninsured, undocumented immigrants further complicate access. The cuts come amid intensified immigration enforcement under President Trump’s administration, which recently shared Medicaid recipients' personal data with immigration authorities, heightening fears of arrest and deportation among immigrants. Health officials warn that these changes could lead to worse health outcomes and place additional strain on healthcare systems in these states.