Report Reveals $200 Million in Federal Health Care Spending For Illegal Immigrants

What's happening

Report Reveals $200 Million in Federal Health Care Spending For Illegal Immigrants — A bipartisan coalition of nearly three dozen House members has introduced a proposal aimed at extending taxpayer-funded subsidies for the Affordable Care Act (ACA), commonly referred to as Obamacare. This legislative move comes as the subsidies are set to expire at the end of December, raising significant concerns about health coverage for millions of Americans who depend on these financial aids to afford their health insurance. Explainer GOP Should Fix Health Care Rather Than Bailing Out Obamacare Proposal Details The proposal is spearheaded by Representatives Josh Gottheimer, a Democrat from New Jersey, and Jen Kiggins, a Republican from Virginia. Their initiative seeks to extend and modify the existing tax credits associated with the ACA. According to reporting from The New York Times, the measure would necessitate two separate votes in Congress. The first vote would focus on extending the tax credits for one year, incorporating modifications that include a new income limit. The second vote would aim to implement more substantial reforms, which could potentially involve eliminating $0 premiums, with exceptions made for those who require need-based support. During a press conference announcing the proposal, Congressman Jeff Van Drew, who notably switched his party affiliation from Democrat to Republican, defended the necessity of the subsidies despite his previous criticisms of the ACA. An axiom attributed to libertarian commentator P.J. O’Rourke argues, 'If you think health care is expensive now, wait until you see what it costs when it’s free!' Two recent studies illustrate the veracity behind this statement and provide additional reasons for Congress not to pass another Obamacare bailout costing $350 billion plus interest. Explainer GOP Should Fix Health Care Rather Than Bailing Out Obamacare An analysis by the Joint Economic Committee’s Republican staff found that 'a substantial portion of the increase in government spending' since the enhanced subsidies went into effect in 2021 'is likely accruing to producers and intermediaries.' It cites a previous study on the original to provide the economic reasoning behind its claims.

What's at stake

The JEC paper, using data from the earlier study, concludes that consumers received only 34 cents of every dollar in federal subsidy spending via lower net premiums. Insurers received more economic value than consumers—38 cents on the dollar—because the subsidies, by making coverage more 'affordable,' give them leverage to raise rates and capture more federal subsidy dollars, particularly in uncompetitive insurance markets. The other 28 cents constitute a deadweight loss because higher premiums discourage enrollment. The JEC analysis finds that, even as subsidy spending has exploded since the introduction of the enhanced subsidies, the overwhelming majority of the benefits go to insurers or are destroyed by deadweight losses, rather than helping consumers themselves. A separate study by Matthew Fiedler of the Brookings Institution examined the effects of zero-dollar premiums on enrollment. This issue has become controversial because the enhanced subsidy formula allows low-income households to qualify for zero-dollar 'benchmark' plans. While nearly half (at least 45 percent) of Exchange enrollees in 2025 report income that qualifies them for zero-dollar coverage, Fiedler estimates that just over one-third (34 percent) of participants, or about 8 million, are actually enrolled in zero-dollar plans this year. House Democrats are advancing a discharge petition to extend enhanced Obamacare subsidies, which are set to expire on December 31. This move comes as the government shutdown concludes, with reports indicating that the proposed bill aims to extend the subsidies for three additional years, through 2028.

Explainer Senate Democrats Block Confirmation of 10 U.S. Attorneys The discharge petition is a strategic maneuver that allows the minority party to secure a floor vote. However, it faces significant opposition from House Republicans. Don Bacon, R-Neb., labeled the petition "DOA," or dead on arrival, emphasizing that no Republican would support a measure that could hand control of the House floor to Democrats. Democrats appear to be prioritizing political messaging over legislative success. By pushing this petition, they aim to create pressure on vulnerable , forcing them to publicly oppose a measure that Democrats know will not gain bipartisan support. What to watch next is whether new filings, agency actions, votes, or court decisions change the timeline—and how officials respond in the weeks ahead.

Why it matters

The coverage highlights: House Republicans Propose Extension of Obamacare Subsidies Amid Internal Discontent. The coverage highlights: Raising ‘Free’ Obamacare Premiums To $1 Could Save $7B A Year. The coverage highlights: House Democrats Pursue Discharge Petition for Obamacare Subsidy Extension. The coverage highlights: Why Republicans Should Resist The Urge To Bail Out Obamacare. The coverage highlights: Health Insurance Companies Spend Big On CA Redistricting Fight. The coverage highlights: 'Conservative' Pollster Shills For Health Insurance Companies.

Key facts & context

2025-12-05: House Republicans Propose Extension of Obamacare Subsidies Amid Internal Discontent. 2025-11-20: Raising ‘Free’ Obamacare Premiums To $1 Could Save $7B A Year. 2025-11-18: House Democrats Pursue Discharge Petition for Obamacare Subsidy Extension. 2025-11-12: Why Republicans Should Resist The Urge To Bail Out Obamacare. 2025-11-04: Health Insurance Companies Spend Big On CA Redistricting Fight. 2025-10-31: 'Conservative' Pollster Shills For Health Insurance Companies. 2025-10-30: Report Reveals $200 Million in Federal Health Care Spending for Illegal Immigrants. 2025-10-24: Think Tank Claims on Obamacare Subsidies Under Scrutiny. 2025-10-09: Senate Democrats Block Government Funding Amid Controversy Over Healthcare for Illegal Immigrants. 2025-10-08: No, Obamacare Premiums Are Not Doubling.

Timeline & key developments

2025-12-05: House Republicans Propose Extension of Obamacare Subsidies Amid Internal Discontent. 2025-11-20: Raising ‘Free’ Obamacare Premiums To $1 Could Save $7B A Year. 2025-11-18: House Democrats Pursue Discharge Petition for Obamacare Subsidy Extension. 2025-11-12: Why Republicans Should Resist The Urge To Bail Out Obamacare. 2025-11-04: Health Insurance Companies Spend Big On CA Redistricting Fight. 2025-10-31: 'Conservative' Pollster Shills For Health Insurance Companies. 2025-10-30: Report Reveals $200 Million in Federal Health Care Spending for Illegal Immigrants. 2025-10-24: Think Tank Claims on Obamacare Subsidies Under Scrutiny. 2025-10-09: Senate Democrats Block Government Funding Amid Controversy Over Healthcare for Illegal Immigrants.

Primary sources

• 60805 — cbo.gov
• ASST NON R01HD109194 075 — usaspending.gov
• ASST NON R21MD019086 075 — usaspending.gov

Further reading & references

• (Additional background links will appear here as we cover this topic.)