Federal Medicaid rules changed on Thursday, Oct. 1, for many legally present immigrants. Refugees, people granted asylum and some survivors of sex trafficking may no longer qualify for federally funded full coverage based on their immigration status. The change does not mean everyone in those groups loses insurance: states must check individual eligibility, and the figures released so far measure who may be affected, not who was dropped.
What changed for Medicaid and CHIP on Oct. 1?
Section 71109 of H.R. 1, signed by President Donald Trump on July 4, 2025, narrows the immigration-status categories for which states can receive federal funding for full Medicaid and Children’s Health Insurance Program (CHIP) coverage. It applies to new applicants and people already enrolled. Medicaid provides coverage to eligible people with low incomes or disabilities, while CHIP covers eligible children.
Before Thursday, refugee status, asylum and certain trafficking-related statuses could satisfy the immigration part of the eligibility test. Now they may not, even when someone has permission to live in the United States. Refugees, asylees, parolees and some survivors of trafficking or domestic violence are among those whose status may no longer qualify them.
The shift concerns federal funding for full coverage. It does not prevent a state from paying for a separate coverage program with its own money, and it does not eliminate every path to federally funded Medicaid.
Can refugees and trafficking survivors still qualify?
Yes, some can. Lawful permanent residents, Cuban or Haitian entrants and people covered by the Compact of Free Association remain among the principal noncitizen categories eligible based on immigration status. They must still meet income, residency and other program requirements. A refugee or trafficking survivor who has since become a lawful permanent resident may therefore still qualify.
States using an optional federal provision may also cover certain lawfully residing children and pregnant people. An affected person’s outcome can depend on their current status, age, pregnancy status and state program. Two people who originally held the same humanitarian status may not receive the same eligibility decision.
Federal guidance tells states to check available electronic records first. If those checks leave questions, agencies must request more information and allow time for a response before ending coverage. Nebraska has warned that coverage may change before a person’s regular renewal date, making an eligibility notice important even for someone who was not expecting to renew soon.
How many people are at risk of losing coverage?
A KFF Health News survey of states found that nine states and the District of Columbia had identified more than 281,000 immigrants at risk of losing Medicaid. That is not a national total or a count of completed coverage terminations.
Florida officials identified nearly 177,000 immigrants as no longer qualifying under the change, the outlet reported. Arizona predicted that nearly 28,000 residents could lose eligibility; New Jersey expected 15,000 to 25,000 residents to lose coverage. North Carolina estimated about 29,000 residents could be affected, and Washington identified 11,000.
Those figures come from state assessments and forecasts, not a final tally of people cut off. Someone flagged as at risk may qualify under another status, provide information that resolves a records question or retain care through a state-funded program. On Wednesday, Sept. 30, KFF Health News reported that final state termination counts were expected later in the fall.
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Why does the administration support the restrictions?
Trump has argued that taxpayer-funded programs should be reserved for U.S. citizens, KFF Health News reported. Narrowing when states can receive federal Medicaid funding reflects that stated priority, although the law still allows some noncitizens to qualify.
The White House has also described the law as removing Medicaid from people in the country without authorization. That account misses a central distinction: people without authorization were already generally ineligible for regular Medicaid. The humanitarian groups newly at risk under this change can be legally present and still fail the narrower immigration-status test.
The Congressional Budget Office estimated that the Medicaid eligibility restrictions would leave about 100,000 more immigrants uninsured by 2034, according to KFF Health News. That is a forecast of the longer-term effect, not a measure of people who lost coverage on Thursday.
What happens to care if full Medicaid coverage ends?
The difference between full insurance and emergency-only benefits can be substantial for people who need continuing treatment. KFF Health News described a refugee whose Medicaid had paid for intestinal surgery and ongoing specialist visits; her mother relied on it for asthma care. Advocates with the Arizona Refugee Center and Interfaith-RISE described efforts to find free medical care and concern about access to prescribed medicines.
Emergency Medicaid can still pay for qualifying emergency treatment for some people who meet other program rules but lack an eligible immigration status. It does not replace full coverage for routine appointments, follow-up care or ongoing prescriptions. Advocates told KFF Health News that some states began sending notices only in September, leaving little time to address questions before the rule took effect.
States can use their own budgets to limit coverage gaps. California committed $365 million to a separate program for about 148,000 affected immigrants through July 2027, KFF Health News reported. New York and Pennsylvania also have state-funded coverage for many affected immigrants.
How many people actually lose full coverage will depend in part on states’ eligibility checks, responses from enrollees and decisions about state-funded programs. The final state counts expected later in the fall will say more about those losses than the early estimates can.


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