A federal judge temporarily blocked a Biden administration rule on Monday that aimed to grant health coverage under the Affordable Care Act to certain individuals brought into the U.S. illegally as children. This decision could impact tens of thousands of Texans.
The ruling follows a lawsuit filed by Texas and 18 other states challenging recent guidance from the Centers for Medicare & Medicaid Services. The guidance had paved the way for some Deferred Action for Childhood Arrivals (DACA) recipients to enroll in subsidized health insurance plans.
The states argued that allowing DACA recipients access to subsidized insurance and classifying them as “lawfully present” would incentivize them to stay longer in the country, increasing state spending on resources like education, healthcare, and law enforcement. Immigration advocacy groups, however, highlighted the potential benefits, noting that access to healthcare could reduce disparities faced by DACA recipients, including high uninsured rates and unmet medical needs.
In Texas alone, approximately 90,000 DACA recipients were eligible for health insurance under the new guidance.
U.S. District Judge Daniel M. Traynor issued a temporary halt to the guidance while the lawsuit proceeds, asserting that the Centers for Medicare & Medicaid Services lacked the authority to “circumvent congressional authority” and redefine “lawfully present,” a legal term describing individuals permitted to remain in the U.S.
A spokesperson for the Centers for Medicare & Medicaid Services stated the agency is reviewing the court’s decision but declined to comment on ongoing litigation.
Texas Attorney General Ken Paxton praised the ruling in a statement on social media, claiming it prevented the Biden administration from prioritizing “illegal aliens” over American citizens using taxpayer dollars.
The decision coincides with a renewed focus on immigration policy. President-elect Donald Trump has promised a sweeping crackdown, including ending birthright citizenship, reinstating strict border policies, and increasing deportations, aligning closely with Texas officials’ ongoing priorities.
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