Minnesota’s budget deal threatened over plans to undo health care for undocumented adults

Gov. Tim Walz and legislative leaders were scrambling Friday to save their $67 billion budget agreement amid an outcry from some Democratic members and activists over a provision to cut health insurance for people in the country illegally.

Faith groups, union leaders and activists flooded the Capitol to protest the deal the day after it was announced. Two dozen DFL legislators have said they won’t vote for a bill that strips immigrants’ access to health care. Activity at the Capitol slowed visibly as lawmakers met about the change behind closed doors.

The decision still awaits approval from the full Legislature, which is closely divided between Democrats and Republicans.

“There are a lot of people working to still do everything that they can to make sure that we can keep this program,” said Rep. Esther Agbaje, DFL-Minneapolis, who said she received an outpouring of messages from constituents after the deal was announced.

Undocumented children would remain eligible for coverage under the state-funded health program, but coverage for adults would end Dec. 31. The change was a top priority of Republicans, who share power with the DFL in the tied state House.

They pointed to a surge in enrollment since the program started in January and argued that costs could balloon at a time when the state is facing a projected deficit in coming years.

Sen. Jordan Rasmusson, R-Fergus Falls, said allowing undocumented immigrants to enroll made Minnesota “a magnet for those who broke the law to enter our country.”

The Department of Human Services says only a fraction of the undocumented individuals enrolled in the program have filed claims, costing the state $3.9 million since the start of the year. That’s more than lawmakers expected, though not as much as Republicans claimed. Roughly a quarter of enrollees in the program are children, according to DHS.

Lawmakers have just a few days before the May 19 deadline to adjourn the regular legislative session. Leaders have conceded a special session is likely to finish the work.

Accusations from Republican members already are flying that one progressive lawmaker, Senate Higher Education Chair Omar Fateh, DFL-Minneapolis, is refusing to hold meetings to finish work on the budget over anger about the health care change.

“Time will tell if Democrats are going to stop a state budget from happening until they get full health care for those here illegally,” Rep. Marion Rarick, R-Maple Lake, posted on X.

Progressive Democrats inside and outside the Capitol criticized the budget deal. Protesters Friday held signs that read, “Any budget written in blood is evil,” and “Hey, GOP! What happened to ‘all lives matter?’”

Roberts said it’s heartbreaking “as a faith leader, to tell people that you know and that you love that they may be the victim of a political deal.”

Minneapolis City Council Vice President Aisha Chughtai chastised her party’s legislative leaders on social media, calling it despicable to strike a deal with Republicans on the issue.

“It’s unconscionable that our DFL leaders decided 20,000 Minnesotan immigrants are disposable in their $67 billion budget,” she said.

Dieu Do, the daughter of Mexican and Vietnamese immigrants, told the crowd gathered at the Capitol that she lost her father eight years ago because he struggled to get health care access until “it was too late.”

“Instead of being with my family, instead of being able to mourn his death and his life,” she said, “I’m ... advocating for my community.”

Howard read that Emilio survived blood poisoning, lost a kidney and still struggles with lingering symptoms. Emilio’s statement noted essential workers were called “heroes” during the pandemic.

“We don’t want to be heroes. We want dignity,” Howard read. “We cannot be essential workers without access to health care.”

Melissa Gonzalez, a pastor at Tapestry Richfield, read for Gaby, a factory worker who lost her right foot to diabetes that she couldn’t consistently manage without health insurance.

“Sometimes my coworkers pitched in so I could afford my insulin, but most of the time I rationed it or stopped taking it because I had no health insurance.”

Since becoming eligible for MinnesotaCare earlier this year, she has been able to access medical care consistently for the first time in 20 years.

Two dozen of the caucus members later gathered for a news conference where they declared they would not vote for a deal that cuts off MinnesotaCare for undocumented immigrants.

“We’re talking about tens of thousands of individuals that would lose access to healthcare at the end of this calendar year,” said Rep. Cedrick Frazier, DFL-New Hope. “We’ve got individuals who are currently receiving cancer treatments, dialysis care.”

Caucus members were careful not to criticize their fellow DFLers, instead they lambasted Republicans, who they characterized as working in lockstep with the Trump administration, willing to harm vulnerable people who depend on the care.

Agbaje said Friday that the demonstration showed the decision to end MinnesotaCare for undocumented adults will affect “real people who could die if this is taken away.”

“Unfortunately, I think our colleagues on the other side ... are so focused on cruelty,” Agbaje said, “so focused on certain people deserve things and other people don’t.”