Following the passage of the Our Big Beautiful Bill Act in Congress, multiple states are beginning to roll back access to taxpayer-funded healthcare for illegal aliens.
The move marks a significant shift in state-level policy, affecting potentially millions of individuals who are not legally present in the United States.
In Illinois, thousands of illegal aliens between the ages of 42 and 64 have lost access to healthcare benefits after the state moved to save approximately $404 million in response to federal funding changes.
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The Chicago Tribune acknowledged the change in a post on X, stating, “In Illinois, adult immigrants ages 42–64 without legal status have lost their health care to save an estimated $404 million.”
For decades we were endlessly gaslit as they mocked us and pretend that no illegal was on government healthcare
Now they’re going to write endless pieces about the tragedy of illegals losing government healthcare https://t.co/kGg13JSuZD
— Auron MacIntyre (@AuronMacintyre) July 20, 2025
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The Tribune further reported that seven states currently provide taxpayer-funded healthcare to illegal aliens.
However, several of those states are now reversing course.
“Three of them have done an about-face, ending or limiting coverage for hundreds of thousands of immigrants who aren’t in the U.S. legally in California, Illinois, and Minnesota,” the report stated.
The shift follows changes at the federal level enacted through the Our Big Beautiful Bill Act.
The law modifies the federal government’s reimbursement formula, reducing the Medicaid funding match from 90 percent to 80 percent for states that choose to extend benefits to individuals in the country illegally.
As a result, many states are expected to withdraw coverage due to the increased financial burden.
States projected to be affected by the reduction in federal support include Arizona, Arkansas, Illinois, Indiana, Montana, New Hampshire, North Carolina, Utah, and Virginia.
Combined, those changes could impact healthcare access for up to 1.9 million illegal aliens, according to estimates.
Prior to the bill’s passage, several media outlets had maintained that illegal aliens were not receiving federally funded healthcare benefits.
However, coverage in the Chicago Tribune and other publications now confirms that such programs were active and widespread in several states.
The impact of the federal policy is already prompting discussion among state officials about budgetary priorities and immigration-related expenditures.
Lawmakers in multiple states have cited fiscal responsibility as the reason for withdrawing healthcare access for individuals residing in the U.S. without legal status.
Historically, federal law has limited access to most public benefits for individuals who are not lawfully present.
However, under state-administered Medicaid programs, some states had expanded eligibility using state funds or enhanced federal contributions. The new federal law curtails that approach by lowering the federal share for any such expansions.
The cutbacks in benefits are expected to have a broader impact on state healthcare systems and immigration policy discussions.
Some analysts have suggested that the withdrawal of publicly funded services could influence decisions by individuals in the country illegally to return to their countries of origin.
The Our Big Beautiful Bill Act was signed into law earlier this year as part of a broader effort to curb government spending and reform entitlement programs.
Proponents of the law argue that prioritizing benefits for American citizens and legal residents is both fiscally and legally necessary.
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