Over 700,000 illegal immigrants on Medicaid costing New Yorkers billions annually, report

New York immigrant Medicaid program becomes national flash point amid shutdown fight **ALBANY, NY** – A state-run health coverage program for seniors without legal status has moved from obscurity to center stage in Washington as partisan clashes over immigration and federal spending intensify. Vice President J.D. Vance highlighted a state flier advertising coverage for undocumented residents over 65, prompting a rapid back-and-forth with Sen. Sheldon Whitehouse over whether Democrats are funding care for illegal immigrants. State officials say the program is paid with state dollars and is unaffected by the federal budget dispute. Launched in January 2024 and authorized in the 2022 budget, the initiative offers state-funded **[**Medicaid**](https://www.shorenewsnetwork.com/search/Medicaid)**-equivalent benefits — including doctor visits, prescriptions, hospital care, home health and nursing home services — to low-income seniors regardless of immigration status, with an estimated 25,000 enrollees and a projected $230 million cost consistent with early enrollment experience. ### Empire Center analysis puts numbers in focus The Empire Center reports the senior coverage accounts for less than one-half of 1 percent of the state’s overall Medicaid enrollment and budget, but arrives as costs for older enrollees, particularly in home care, continue to rise. The think tank’s breakdown shows broader coverage for non-citizens under long-standing categories such as PRUCOL, with approximately 730,000 legally present immigrants previously covered through the federally financed Essential Plan. That federal financing changed with President Trump’s budget and tax bill this summer, which excludes most legally present immigrants from federal health funding and is expected to reduce Essential Plan support by $7.6 billion annually when fully effective. Under a 2001 court ruling, the state must continue coverage for roughly 506,000 legally present adults with incomes below 138% of the federal poverty level, and New York is seeking federal approval to use a $9 billion Essential Plan trust fund surplus to maintain benefits before potential shifts to state-funded **[**Medicaid**](https://www.shorenewsnetwork.com/search/Medicaid)**. Coverage for legally present immigrants above 138% of poverty in the Essential Plan is slated to end in 2027, and they are no longer eligible for federal premium tax credits. ### Politics collide with state policy Vance’s post on X drew millions of views and tens of thousands of shares, arguing that federal Medicaid aid frees state dollars for **[**undocumented immigrants**](https://www.shorenewsnetwork.com/search/undocumented+immigrants)**, while critics countered that the senior program uses only state funds. The White House and congressional Democrats have pressed for increased federal health funding as part of the reopening package, while Republicans accuse them of steering money toward non-citizens. Regardless of federal negotiations, state officials maintain the 65-plus program can continue so long as no federal dollars are used, keeping the policy within state control. Enrollment for emergency Medicaid among undocumented residents under 65 — allowed since 2014 for incomes below 138% of poverty — has approached 490,000, separate from the senior coverage pool. The Empire Center notes that lawmakers may revisit immigrant coverage choices as they negotiate a tight fiscal 2027 budget, and the issue is likely to surface in the next gubernatorial race, with Gov. Kathy Hochul’s expected challenger, Rep. Elise Stefanik, already weighing in online. For **[**New York**](https://www.shorenewsnetwork.com/search/New+York)**, one small program built for seniors has become the latest proxy battle in a much larger war over immigration and health care spending.