Minnesota Legislature Votes To Repeal Health Coverage For Undocumented Adults In MinnesotaCare

Minnesota Legislature Votes To Repeal Health Coverage For Undocumented Adults In MinnesotaCare

ST. PAUL, MN – June 9, 2025 – In a contentious move during a one-day special legislative session on Monday, the Minnesota House and Senate passed a bill that will remove adult undocumented immigrants from MinnesotaCare, repealing a law enacted in 2023 that had extended health insurance coverage to this population. This decision was a key component of a broader $66 billion two-year state budget deal negotiated between legislative leaders and Governor Tim Walz, aiming to avert a potential government shutdown by the end of June.

The original legislation, passed in 2023 with strong DFL (Democratic-Farmer-Labor) support when they held majorities in both chambers, allowed undocumented immigrants to enroll in MinnesotaCare, the state's health insurance program for low-income individuals and families. Coverage for this group officially began in January 2025. According to the Minnesota Department of Human Services, over 20,000 undocumented immigrants have enrolled in MinnesotaCare since then, with approximately 17,000 being adults. This enrollment figure was significantly higher than the initial projections.

The repeal measure, sponsored by Republican Representative Jeff Backer of Browns Valley, was a top priority for Republicans in the budget negotiations. Proponents, including Rep. Backer and Senator Jordan Rasmusson (R-Fergus Falls), argued that the state could not afford the escalating costs of covering undocumented adults, especially since Minnesota bears 100% of these costs (unlike other Medicaid services where the federal government covers a significant portion for citizens). Republicans had estimated that with higher-than-expected enrollment, the state could face costs exceeding $600 million over the next four years.

The vote was particularly fraught, highlighting the deep divisions within the Minnesota Legislature. The House, which is tied 67-67 between DFL and Republicans, passed the bill by a narrow margin of 68-65. Notably, House DFL Leader Melissa Hortman of Brooklyn Park was the sole Democrat to vote in favor, a necessary concession as part of the budget agreement. She expressed her personal opposition but emphasized the need to honor the budget deal to prevent a government shutdown.

In the Senate, where the DFL holds a slim one-seat majority, the bill passed 37-30. Senate Majority Leader Erin Murphy of St. Paul, along with three other DFL senators (Sen. Grant Hauschild of Hermantown, Sen. Rob Kupec of Moorhead, and Sen. Ann Rest of New Hope), voted with Republicans. Senator Murphy described it as "among the most painful votes I've ever taken," indicating the difficult compromise involved.

Many DFL lawmakers and progressive groups vehemently opposed the repeal. House DFL Floor Leader Jamie Long of Minneapolis, who authored the 2023 bill extending coverage, decried the new bill as "cruel, it is inhumane, it will cost real human Minnesotan lives." Opponents argued that the measure would not genuinely save money, as people without insurance often delay seeking preventative care, leading to more expensive emergency room visits. They also stressed the moral implications of stripping healthcare access from vulnerable populations. Demonstrators protested outside the Capitol during the special session, holding signs that read "Health care cuts kill."

Despite the strong opposition from within his own party, Governor Tim Walz has indicated he will sign the bill into law, framing it as the "right compromise" to secure the overall budget and avoid a government shutdown.

The bill specifies that adult undocumented immigrants will lose their MinnesotaCare eligibility after December 31, 2025, while undocumented children will remain eligible for coverage.

This move represents a significant shift in Minnesota's healthcare landscape, just months after expanded coverage for undocumented immigrants went into effect.

MinneapoliMedia