DENVER — A new bill to overhaul Medicaid and cut federal funding to states like Colorado that offer health care to undocumented immigrants advanced in a U.S. House committee on Wednesday.
The bill is part of a larger package called the “big, beautiful bill,” which seeks to extend tax cuts by reducing federal spending on Medicaid and other benefit programs. U.S. House Speaker Mike Johnson said multiple committees worked overnight to advance the bill, aiming for a full House vote before Memorial Day.
Colorado Could Lose Millions in Federal Funding
One provision of the bill would penalize states that use state funds to provide health care to undocumented immigrants. Starting in 2027, states would lose 10% of their federal Medicaid expansion match if they continue these programs.
“It truly is a way to punish the state for providing these supports for undocumented folks,” said Heather Tritten, president and CEO of the Colorado Children’s Campaign.
Republicans Defend Cuts as Medicaid Protection
Republicans argue the change is necessary to prioritize Americans. “We make no apologies for prioritizing Americans in need over illegal immigrants,” said U.S. Rep. Brett Guthrie, R-Kentucky, chairman of the House Committee on Energy and Commerce.
Rep. Erin Houchin, R-Indiana, said the plan aims to protect Medicaid for vulnerable populations. “We are strengthening and protecting Medicaid for pregnant women, children, individuals with disabilities, low-income seniors, and vulnerable families,” she said.
Impact on Colorado’s Health Programs
Colorado currently funds two programs for undocumented immigrants. OmniSalud helps them purchase private insurance with state-funded subsidies. Cover All Coloradans, launched in 2025, provides Medicaid-like coverage for children and pregnant women regardless of immigration status.
Cover All Coloradans currently serves about 18,000 people, including over 13,000 children, according to Tritten.
Supporters argue that covering undocumented immigrants saves taxpayer money by reducing emergency room visits. “It is less costly for people to have health coverage for themselves, but it’s also less costly for the rest of us when everybody has health coverage,” said Dana Kennedy, co-executive director of the Center for Health Progress.
Broader Economic and Health Care Implications
Theresa Trujillo, also from the Center for Health Progress, warned of wider consequences. “If the federal government cuts funding to Colorado, it will make health care more expensive for all of us,” she said. “Emergency rooms will become overwhelmed when people without coverage lose access to primary care.”
Tritten also pointed to Colorado’s unique budget restrictions. “We have constitutional limits on spending. If these cuts happen, we don’t have a way to fill those gaps,” she said.
The Center on Budget and Policy Priorities estimates Colorado could lose $2.2 billion in federal Medicaid expansion funding from 2028 to 2034 if the bill becomes law.
State Officials Urge Congress to Reconsider
Governor Jared Polis’ office criticized the proposal. “Governor Polis urges Congress not to implement drastic Medicaid cuts that would jeopardize coverage for hundreds of thousands of Coloradans,” said Shelby Wieman, the governor’s press secretary.
Wieman noted that reducing uninsured rates lowers overall health care costs and strengthens the economy. She cited Congressional Budget Office estimates that the Republican plan would remove health insurance from over 8.6 million Americans.
Republicans maintain that states are responsible for the consequences. “States like Colorado are only hurt by this proposal because of their state policies,” said GOP members of the House Committee on Energy and Commerce.
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