Trump administration cuts Medicaid coverage for hundreds of thousands of legal immigrants

The Trump administration has stripped Medicaid health coverage from hundreds of thousands of legal immigrants under new federal restrictions that took effect on October 1, 2026. ABC News and Courthouse News Service both report that the policy applies to foreigners who legally immigrated to the United States, including refugees and victims of human trafficking. Many of the affected individuals work and pay taxes in the country. [1][2]

The coverage restrictions stem from sweeping changes made to Medicaid under President Donald Trump's 2025 tax cut and policy law. According to ABC News and Courthouse News Service, these broader federal policy shifts are expected to ultimately force millions of people off their health insurance coverage. [1][2]

In related coverage, the Nebraska Examiner reported that Dr. Mehmet Oz, the Medicaid director for the Trump administration, visited Nebraska to support a state rural health program. Separately, Advocate.com reported that Virginia representative Abigail Spanberger is exploring options to protect transgender children in her state from the federal Medicaid cuts. [3][5]

The policy continues to draw scrutiny across several states. According to The Hill, state officials in Minnesota have demanded answers from the federal government regarding an ongoing Medicaid fraud dispute with the Trump administration. [7]