Montgomery, AL – A federal court has issued a preliminary injunction against a Biden Administration rule that sought to provide taxpayer-subsidized health insurance to certain undocumented immigrants. The decision comes after a coalition of 19 state attorneys general, led by Kansas, challenged the regulation in court. Alabama Attorney General Steve Marshall was among those who joined the lawsuit.
The rule, introduced earlier this year, aimed to extend Affordable Care Act (ACA) benefits to approximately 200,000 Deferred Action for Childhood Arrivals (DACA) recipients. Critics argued that such an expansion conflicted with existing laws, including a 1996 statute prohibiting undocumented immigrants from accessing federal benefits. The ACA itself requires individuals to be “lawfully present” in the United States to qualify for subsidized health insurance plans.
Attorney General Marshall expressed strong opposition to the proposed regulation, stating:
“Under no circumstances should American citizens be bankrolling Obamacare for illegal immigrants. Not only would subsidized healthcare be another incentive for illegal immigration, but the agency threatened to cut the funding States use to run the very exchanges required under the Affordable Care Act.”
The coalition argued the regulation exceeded the administration’s authority and would undermine the intent of federal immigration and healthcare laws. The court agreed, granting a preliminary injunction to prevent the rule from taking effect while legal challenges proceed.
State attorneys general from Alabama, Arkansas, Idaho, Indiana, Iowa, Florida, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, South Carolina, South Dakota, Tennessee, Texas, and Virginia joined Kansas in the lawsuit.
The Biden Administration has not yet indicated whether it will appeal the decision. The case highlights ongoing legal and political disputes over immigration policy and access to federal benefits.