Rep. Boebert Introduces Bill to Ensure Federal Tax Dollars Do Not Fund Health Insurance for Illegal Aliens

Rep. Lauren Boebert has introduced new legislation aimed at ensuring federal taxpayer dollars cannot be used to subsidize health insurance for individuals who are in the United States illegally.

The measure, titled the No Federal Tax Dollars for Illegal Aliens Health Insurance Act of 2025, would amend the Affordable Care Act to make clear that federal funds supporting state health insurance programs must be reserved for Americans and individuals who are lawfully present in the country. The legislation comes as some states attempt to expand taxpayer-funded benefits to illegal immigrants through creative use of federal health funding programs.

Boebert said the bill is about restoring accountability and protecting American taxpayers from footing the bill for benefits intended for legal residents.

Under the Affordable Care Act, states can apply for what are known as Section 1332 “state innovation waivers,” which allow them to redesign parts of their insurance markets while receiving federal pass-through funding tied to the program. Boebert’s legislation would clarify that those federal funds cannot be used to subsidize health insurance coverage — including premium assistance or cost-sharing reductions — for individuals who are not U.S. citizens, U.S. nationals, or immigrants lawfully present in the United States.

Boebert has argued that without stronger guardrails, states could structure programs in ways that indirectly channel federal taxpayer money toward coverage for illegal aliens. Her bill aims to close that loophole and ensure federal health subsidies are reserved for Americans and those legally eligible to receive them.

In addition to preventing future misuse of federal funds, Boebert’s legislation would require the Secretary of Health and Human Services to review existing state waiver programs. Any waiver that would not have been approved under the new standards would be rescinded within 30 days of the law taking effect.

Boebert said the proposal reflects a broader commitment to putting American citizens first and ensuring taxpayer dollars are not diverted to benefits for those who entered the country illegally.

The bill does not prevent states from offering health coverage to illegal immigrants using their own state funds. Instead, Boebert’s legislation focuses specifically on preventing federal taxpayer dollars from being used — directly or indirectly — to subsidize such coverage.

Boebert’s proposal has been referred to the appropriate House committee for consideration.