Excluding Illegal Aliens from Medicaid Act

This legislation aims to modify federal Medicaid provisions concerning alien eligibility and state funding. It accelerates the effective date for certain Medicaid eligibility rules related to aliens, moving it from October 1, 2026, to July 4, 2025 , with retroactive effect. This change impacts when specific federal guidelines regarding alien access to Medicaid benefits become active. Furthermore, the bill significantly alters the Federal Medical Assistance Percentage (FMAP) for states that provide health care to certain non-qualified aliens. Beginning July 4, 2025, any state deemed a "specified State" will receive the standard FMAP, rather than the enhanced 90% FMAP typically provided for Medicaid expansion populations. A state becomes a "specified State" if it uses its general funds to provide financial assistance for health insurance or offers comprehensive health benefits coverage to aliens who are not qualified aliens, excluding lawfully residing children or pregnant women eligible under specific federal programs. This provision effectively reduces federal Medicaid contributions to states that choose to fund health services for these populations.