Excluding Illegal Aliens from Medicaid Act

This bill significantly alters Medicaid provisions related to alien eligibility and state funding. It accelerates the effective date for certain alien Medicaid eligibility changes from October 1, 2026, to July 4, 2025 , making these new rules applicable sooner. This change is retroactive, taking effect as if included in the original enactment. Furthermore, the bill modifies the Federal Medical Assistance Percentage (FMAP) for states that provide health care or health insurance to certain non-qualified aliens. Specifically, any state that uses its general funds to offer financial assistance for health insurance or comprehensive health benefits to an alien who is not a qualified alien (with exceptions for certain children and pregnant women) will no longer receive the enhanced FMAP. Instead, these "specified States" will receive the standard FMAP for such expenditures, effectively reducing federal contributions to their Medicaid programs. This measure aims to disincentivize states from using their own funds to cover healthcare costs for individuals not meeting federal immigration eligibility criteria.