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Minnesota Budget Deal Cuts Health Care for Adults Living in the U.S. Illegally

by daisy

ST. PAUL, Minn. — Under a new budget agreement passed during a special session, adults living in the U.S. illegally will no longer be eligible for Minnesota’s state-run health care program, MinnesotaCare, which provides coverage for low-income residents. The change, which impacts around 17,000 people, was a key demand from Republicans during negotiations.

In 2023, a state law had extended eligibility for immigrants in the U.S. illegally to MinnesotaCare, but Republicans pushed to repeal it. The decision came after a contentious four-hour debate. The bill passed in the House with a 68-65 vote, with the top Democratic leader, Rep. Melissa Hortman, being the only member of her caucus to support it. In the Senate, it passed 37-30, with Democratic Majority Leader Erin Murphy calling it “a wound on the soul of Minnesota,” but still voting in favor of the bill as part of the overall budget deal.

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Governor Tim Walz, who fought to maintain coverage for children who are not legally in the U.S., has promised to sign the bill into law. The decision is part of a broader $66 billion, two-year budget that will take effect on July 1.

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The move sparked intense debate. Democratic lawmakers, including House Floor Leader Jamie Long, denounced it as part of the GOP’s broader campaign against immigrants. “This is 100% about the GOP campaign against immigrants,” Long said, drawing comparisons to national issues such as former President Trump’s travel ban.

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However, GOP Rep. Jeff Backer, the bill’s lead sponsor, argued that taxpayers should not fund health care for people living in the country illegally. “This is about being fiscally responsible,” Backer said, noting that states like California and Illinois have proposed similar measures. He also pointed out that individuals can still buy private health insurance regardless of their immigration status.

Enrollment in MinnesotaCare by individuals without legal status has exceeded initial projections, and Republicans argue the program could cost taxpayers over $600 million in the next four years. Critics, however, argue that cutting coverage will only lead to higher costs in the long term, as individuals delay care until conditions worsen and require expensive emergency treatment. “People don’t suddenly stop getting sick when they don’t have insurance,” said Bernie Burnham, president of the Minnesota AFL-CIO.

Despite deep divisions in the Minnesota Legislature, which is split 101-100 with a Democratic majority in the Senate, the budget agreement passed with enough support to resolve the state’s fiscal plan.

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