Fact Sheet

The Value of Our Taxes: Protecting and Strengthening Collective Well-being

As we close our Tax Awareness Month, it is timely to reflect on how federally funded programs not only provide well-being to families in difficult situations but also create opportunities for our communities to thrive.

Federal programs in danger

Proposed cuts to Medicaid

The Republican-controlled Congress seeks to make the 2017 tax cuts permanent, which primarily benefited corporations and wealthy Americans. To finance these tax cuts, legislators propose reducing the Medicaid budget by up to $880 billion over the next 10 years. Some measures include:

  • Changing the funding model to block grants or per capita grants with fixed amounts
  • Adding work requirements for Medicaid beneficiaries
  • Establishing stricter verification requirements
  • Eliminating coverage for certain non-medical services

Other proposals in budget reconciliation affecting immigrant families

Within the budget reconciliation process, concerning measures have been raised:

  • Penalizing states that provide coverage to people without immigration status by reducing federal support for Medicaid expansion from 90% to 80%
  • Eliminating the grace period for verifying the immigration status of those applying for Medicaid/CHIP, allowing states to deny coverage while verifying status. States that continue to provide coverage during this period would not receive matching federal funds, even if the person later proves to be eligible.
  • Removing eligibility for the insurance marketplace (ACA) for DACA recipients starting in 2026, eliminating their eligibility for premium tax credits in all states.
  • Changing the Child Tax Credit, excluding 4.5 million children in mixed-status families, whose parents do not have regular status but file taxes without a Social Security Number.
  • Limiting Medicare eligibility to citizens, legal permanent residents, COFA migrants, and certain Cubans, excluding people with long-term TPS, asylees, refugees, survivors of trafficking and domestic violence, and other immigrants who have worked and paid Medicare taxes for years (over 10 years in many cases).

Other concerning initiatives

Medication prices: On April 15, President Trump signed an executive order that promises to lower prices, but its effectiveness is doubtful given the party's history of opposition to market regulation.

Public education: On March 20, 2025, President Trump signed an executive order seeking to dismantle the Department of Education and return authority over education to States and local communities, which puts equitable access at risk.

Child care: Administrative changes threaten programs like Head Start, which are already causing disruptions in essential services for vulnerable children.

Social Security: The erroneous classification of thousands of living immigrants as "dead" in its database system affects those with legally obtained Social Security numbers. This policy is primarily aimed at immigrants whose legal status has been revoked or has expired under the policies of the current administration.

Public programs: In February 2025, Trump signed an executive order to deny access to any federally funded public program to people without immigration status.

Call to Action

We invite our community to:

  1. Stay informed about policies affecting essential federal programs.
  2. Contact your elected representatives to express concerns about cuts to vital programs such as those that protect public health.
  3. Join advocacy organizations like Alianza Americas and Protecting Immigrant Families.
  4. Participate in public consultation processes when federal agencies propose rule changes.
  5. Share information about Medicaid eligibility and enrollment processes with your community.
  6. Support community health centers that provide care regardless of ability to pay.

It is crucial that we remain vigilant against attempts to dismantle vital programs that support working communities and those in vulnerable situations. Our taxes should serve to build a fair, equitable, and supportive country. Federal funds financed by our taxes should continue to serve collective well-being and create opportunities for all, regardless of their origin, language, or immigration status.

Together, we can defend fair access to essential programs and build a future where all families can thrive.

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