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

This bill amends the Patient Protection and Affordable Care Act (ACA) to ensure that federal taxpayer funds for health insurance coverage are available only to authorized individuals. It explicitly prohibits states from using federal pass-through funding, provided under ACA Section 1332, to offset the cost of health insurance coverage or provide other benefits for individuals who are not citizens or nationals of the United States or lawfully present aliens . This measure aims to prevent federal subsidies from being used for unauthorized individuals. The legislation further requires the Secretary of Health and Human Services to rescind any existing state innovation waivers approved under Section 1332 that would not comply with these new restrictions. This ensures that all current and future state-run health insurance programs receiving federal funds adhere to the tightened eligibility criteria.