Federal Judge Halts DACA Recipients’ Access to ACA Health Coverage

A federal judge has issued a temporary injunction blocking a Biden administration rule that would have allowed certain individuals, brought into the country illegally as children, to access health coverage under the Affordable Care Act. This ruling has the potential to impact tens of thousands of Texans who qualify.

The court’s decision follows a lawsuit initiated by Texas and 18 other states against the federal government. This legal challenge arose after new guidance from the Centers for Medicare & Medicaid Services (CMS) aimed to enable some Deferred Action for Childhood Arrivals (DACA) recipients to enroll in health insurance plans.

State officials argue that granting DACA recipients access to subsidized health insurance would encourage them to remain in the country longer, subsequently straining state resources in areas like education and law enforcement. Despite these claims, studies indicate that undocumented Texans contribute more to the state’s economy than they take in services.

Advocacy organizations for immigrant rights contend that providing health care access is essential to addressing the disparities faced by DACA recipients, who often grapple with high uninsured rates and delayed medical care.

In Texas, approximately 90,000 DACA recipients would have been eligible for health insurance under the recent federal guidance. However, U.S. District Judge Daniel M. Traynor ruled that CMS lacked the authority to redefine the term “lawfully present,” which describes individuals legally permitted to reside in the United States, citing implications for congressional authority.

A spokesperson from CMS stated that the agency is reviewing the court’s decision but refrained from commenting further due to the ongoing litigation.

Texas Attorney General Ken Paxton expressed approval of the ruling via social media, framing it as a victory against what he described as the administration’s taxpayer-funded policies favoring undocumented immigrants over American citizens.

This ruling unfolds amid a broader national debate on immigration policy, as President-elect Donald Trump reiterated his commitment to a tough stance on immigration, including proposals to revoke birthright citizenship and strengthen border enforcement mechanisms.