No Federal Tax Dollars for Illegal Aliens Health Insurance Act of 2026

Bill Number

H.R. 7817

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Health

Status

Introduced

Latest Action

2026-03-05: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

Last Updated

2026-06-04T08:08:56Z

AI-Generated Summary

Purpose

The legislation, titled the "No Federal Tax Dollars for Illegal Aliens Health Insurance Act of 2026," aims to modify the Patient Protection and Affordable Care Act (ACA, often called Obamacare) to restrict the use of federal taxpayer funds for health insurance coverage. Specifically, it ensures that such funds are available only to U.S. citizens, nationals, or aliens lawfully present in the United States, preventing benefits for individuals who are not authorized under immigration law.

Key Provisions

• Amendment to Waiver Requirements: Under Section 1332 of the ACA, which allows states to apply for waivers to innovate their health insurance systems, the bill adds an exception. It excludes the requirement in Section 1312(f)(3) of the ACA (which mandates affordable coverage options for all individuals) from being waived, ensuring that waivers cannot expand coverage to unauthorized individuals using federal funds.
• Prohibition on Pass-Through Funding: For states receiving federal pass-through funds via waivers, the bill prohibits using these funds to reduce premiums, cover cost-sharing (like deductibles or copays), or provide any other health benefits to individuals who are not U.S. citizens, nationals, or lawfully present aliens.
• Rescission of Existing Waivers: Within 30 days of enactment, the Secretary of Health and Human Services (HHS) must cancel any previously approved Section 1332 waivers that would not have been granted if the new restrictions were already in place.

Significant Changes to Existing Law

• The ACA's Section 1332 waiver program previously allowed states flexibility to experiment with health coverage models, potentially including broader eligibility. This bill narrows that flexibility by explicitly barring federal funds from supporting coverage for unauthorized immigrants, overriding any waiver that might have indirectly allowed it.
• It introduces a new sentence in Section 1332(a)(3) to enforce the funding prohibition, creating a direct legal barrier absent in the original ACA.
• The rescission clause forces immediate review and revocation of certain waivers, altering ongoing state programs without grandfathering provisions.

Potential Impacts

• On Government Agencies: HHS will face administrative burdens to review and rescind waivers within 30 days, potentially leading to legal disputes or delays in state health programs. Other agencies, like those handling immigration verification, may see indirect effects if states adjust eligibility checks.
• On Citizens and Residents: U.S. citizens and lawfully present individuals could benefit from redirected federal funds, potentially stabilizing or lowering costs in authorized coverage pools. However, states with innovative programs might need to redesign them, possibly affecting overall access to affordable insurance.
• On Unauthorized Individuals: Undocumented immigrants (estimated at millions) would lose eligibility for any subsidized health coverage through state waiver programs, limiting their access to federal-supported insurance options.
• On International Relations: Minimal direct impact, though it reinforces U.S. immigration enforcement priorities, which could influence diplomatic discussions on migration with other countries.

Main Stakeholders Affected

• Undocumented Immigrants: Primary group losing access to subsidized health insurance via state waivers.
• States and Health Programs: States with active Section 1332 waivers (e.g., those experimenting with Medicaid expansions or marketplaces) must comply or face funding cuts.
• U.S. Taxpayers and Citizens: Benefit from ensured allocation of funds to authorized individuals, potentially reducing perceived waste.
• Federal Agencies: HHS bears responsibility for enforcement and rescissions; the Internal Revenue Service (via Ways and Means Committee referral) may handle related tax implications for funding.
• Health Insurers and Providers: Could see shifts in enrollment and reimbursements, affecting operations in states with altered programs.

Notable Legal, Constitutional, or Political Implications

• Legal: The bill could invite challenges under the Equal Protection Clause of the 14th Amendment, as it differentiates based on immigration status; courts might scrutinize if it conflicts with ACA's broad coverage goals or prior rulings on immigrant health access (e.g., emergency Medicaid). The 30-day rescission timeline may raise due process concerns for affected states.
• Constitutional: Aligns with Congress's spending power to condition federal funds but could test limits on federalism, as it overrides state waiver approvals without full congressional review.
• Political: Introduced by Republican representatives, it reflects debates on immigration and fiscal responsibility; passage could energize enforcement-focused policies but face opposition in a divided Congress, potentially stalling in committees like Energy and Commerce or Ways and Means. If enacted, it might set precedents for restricting benefits in other federal programs.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Boebert, Lauren [R-CO-4]

Cosponsors (15)

Rep. Hurd, Jeff [R-CO-3], Rep. Crank, Jeff [R-CO-5], Rep. Evans, Gabe [R-CO-8], Rep. Donalds, Byron [R-FL-19], Rep. Luna, Anna Paulina [R-FL-13], Rep. Nehls, Troy E. [R-TX-22], Rep. Gosar, Paul A. [R-AZ-9], Rep. Kennedy, Mike [R-UT-3], Rep. Van Drew, Jefferson [R-NJ-2], Rep. Perry, Scott [R-PA-10], Rep. Clyde, Andrew S. [R-GA-9], Rep. Self, Keith [R-TX-3], Rep. Harris, Andy [R-MD-1], Rep. Burchett, Tim [R-TN-2], Rep. Harris, Mark [R-NC-8]

Recent Actions

• 2026-03-05: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-05: Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
• 2026-03-05: Introduced in House
• 2026-03-05: Introduced in House

Bill Versions

• No Federal Tax Dollars for Illegal Aliens Health Insurance Act of 2026 — issued 2026-03-05 — PDF (3 pages)