Immigration (Work Authorization)

The Protect Medicaid Act (S 523) prohibits federal Medicaid funds from covering administrative costs for health benefits provided to unauthorized immigrants. It directly affects states that currently offer Medicaid-like benefits to noncitizens ineligible due to immigration status, requiring them to fund these administrative costs themselves. The bill amends the Social Security Act to explicitly ban such federal spending and mandates an Inspector General report detailing how states separate costs, ensure compliance, and finance these programs (e.g., via provider taxes). The report must also analyze drug pricing impacts when unauthorized immigrants receive covered medications through Medicaid or 340B programs. This is a procedural change restricting federal funding, not altering eligibility for Medicaid benefits.

This bill requires colleges and universities receiving federal student aid to comply with U.S. immigration law regarding employment of unauthorized workers. Specifically, it mandates that institutions participate in the E-Verify program (which checks employment eligibility) and prohibits them from receiving federal funds if they violate immigration employment rules. The Department of Homeland Security will monitor E-Verify participation every six months and notify the Education Department if an institution fails to comply. This directly affects any accredited college or university seeking federal student aid or institutional grants under the Higher Education Act.

The SECURE Benefits Act of 2025 creates a new process for issuing temporary Social Security numbers to noncitizens with valid temporary work permits (e.g., H-2A visa holders). It requires the IRS to verify these individuals' active work authorization status before allowing them to claim tax benefits like the Child Tax Credit, Earned Income Credit, or Savers Credit. The bill adds a $5,000 penalty for claiming these credits based on expired or invalid work authorization, with exceptions for reasonable cause. This directly affects noncitizens seeking tax benefits who hold temporary work permits, ensuring only those with current authorization can access these credits.