CMS Announces Medicaid Cuts Affecting Thousands of Noncitizens
The Centers for Medicare & Medicaid Services (CMS) has issued new guidance that will result in thousands of individuals losing federally funded Medicaid or Children's Health Insurance Program (CHIP) benefits later this year. This change follows a law passed in 2025 that restricts federal funding for certain noncitizens. The guidance specifies that federal Medicaid and CHIP matching funds will now only be available for U.S. citizens, nationals, lawful permanent residents, certain Cuban and Haitian entrants, and migrants residing under the Compacts of Free Association. Refugees, asylees, parolees, and survivors of trafficking who do not meet these criteria will be affected. States are required to update eligibility systems and notify affected enrollees by October 1, when the new rules take effect.