Federal judge blocks rule that would have given DACA recipients access to Affordable Care Act coverage

Supporters of the the Deferred Action for Childhood Arrivals policy rally after a hearing on the program outside the federal courthouse in Houston on June 1, 2023. (Credit: Adrees Latif/REUTERS)

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A federal judge on Monday issued a court order temporarily blocking a Biden administration rule that would have granted some people brought into the country illegally as children access to health coverage under the Affordable Care Act, a decision that could affect tens of thousands of Texans.

The decision comes after Texas and 18 other states banded together to sue the federal government following recent guidance from the Centers for Medicare & Medicaid Services establishing a pathway for some Deferred Action for Childhood Arrivals (DACA) recipients to enroll in health insurance plans.

The states argued that by allowing DACA recipients to benefit from subsidized health insurance and making them “lawfully present” in the health care system, they will want to stay in the country longer, causing states to spend more money on resources like education, health care and law enforcement. State Republican leaders in interviews and lawsuits challenging the federal government’s immigration policies often make such claims about undocumented immigrants straining state resources, despite evidence that undocumented Texans contribute more to the economy than they cost the state.

Immigration advocacy groups say access to health care will help alleviate the disparities DACA recipients face, such as high uninsured rates and unmet medical needs after years of delaying care.

Texas has roughly 90,000 DACA recipients eligible to sign up for health insurance under the recent federal guidance.

But on Monday, U.S. District Judge Daniel M. Traynor temporarily halted the guidance from taking effect as the lawsuit proceeds, stating that the Centers for Medicare & Medicaid Services does not have the authority to “circumvent congressional authority” and redefine “lawfully present,” a term used to describe people who are legally permitted to remain in the U.S.

In response, a Centers for Medicare & Medicaid Services spokesperson said the agency “is reviewing the court’s decision; however, the agency does not comment on litigation,” according to The Hill.

In a statement posted to social media on Monday, Texas Attorney General Ken Paxton celebrated the ruling.

“Today, we prevented yet another attempt by the Biden Administration to spend our hard-earned tax dollars on radically unpopular policies that put illegal aliens ahead of” American citizens, the statement said.

The ruling comes as President-elect Donald Trump has pledged a vast immigration crackdown that includes ending birthright citizenship, reviving border policies from his first time in office and deporting millions of people through raids and detainment camps — and as Texas officials remain in lockstep with Trump’s priorities.