CBO: Democrats Covered Up Widespread Fraud and Abuse in Federal Health Programs

WASHINGTON, D.C. - Recent analysis by the Congressional Budget Office (CBO) confirms that Democrats conducted a years-long, massive cover-up to defraud American taxpayers in order to subsidize fraud, waste, and abuse in federal health programs, including using loopholes to provide free health care to illegal immigrants. Republicans put an end to these generous unjustified subsidies and instead lowered premiums for those properly enrolled in the program and provided a massive tax cut to the middle class in The One, Big, Beautiful Bill, signed into law on July 4th.

Lawmakers requested CBO provide critical context behind their topline coverage estimates resulting from the health reforms in The One, Big, Beautiful Bill. CBO's latest analysis makes clear that The One, Big, Beautiful Bill is not taking coverage away from hardworking Americans but is ending billions in subsidies for illegal immigrants, cracking down on fraud, and restoring integrity to health care programs. CBO estimates that the policies in the new law dealing with health insurance marketplace premium tax credit eligibility would reduce those who should not be getting taxpayer subsidies by 2.1 million in 2034.

Additionally, CBO confirms Republicans' concerns with massive improper enrollment in Obamacare. The agency not only finds that Democrat policies have led to at least 2.3 million fraudulent enrollees in Obamacare, but also that common sense Republican program integrity reforms in The One, Big, Beautiful Bill will lower premiums for those truly eligible for the program while putting an end to these abuses.

The request was made by the chairmen of the House Committees on Ways and Means, Budget, and Energy and Commerce: Jason Smith (MO-08), Jodey Arrington (TX-19), and Brett Guthrie (KY-02). They made the following joint statement:

"CBO found Democrats' policies to be responsible for massive waste, fraud, and abuse in federal health programs, even forcing taxpayers to pay for the health care of illegal immigrants, including some of the worst criminal offenders. Thanks to The One, Big, Beautiful Bill, Republicans are protecting taxpayers and delivering pro-growth tax cuts for Americans. In fact, CBO confirmed that because of our reforms, premiums will go down for Obamacare enrollees. It's no surprise Democrats failed to hold government bureaucrats accountable and continue to side with illegal immigrants."

Key Details:

The only populations impacted by Republican safeguards in The One, Big, Beautiful Bill are ineligible groups including:

• 1.2 million illegal immigrants or non-citizens made eligible for taxpayer-funded subsidies via Democrat-created loopholes, who will no longer receive Obamacare subsidies after years of Biden-Harris abuse of "lawful presence" definitions.
• 700,000 individuals who refuse to comply with common-sense income and other verification requirements designed to stop waste, fraud, and abuse.
• 400,000 individuals abusing a Biden-era special enrollment period that CBO itself confirms encouraged fraud and improper enrollment.

CBO Confirms Widespread Fraud and Abuse:

CBO analysis finds massive Obamacare fraud and confirms Republican-led reforms will protect federal health programs from waste, fraud, and abuse and will ensure that these resources are protected for the most vulnerable.

• 2.3 million Obamacare enrollees in 2025 improperly claimed premium tax credits, often by misreporting income to qualify for subsidies for which they were not eligible. CBO analysis confirms that expanded credits under Biden-Harris fueled this abuse at American taxpayers' expense.
• $185 billion in savings to taxpayers due to Republican reforms in The One, Big, Beautiful Bill that reverse Obamacare fraud and protect those truly eligible, according to CBO and the Joint Committee on Taxation.
• CBO projects premiums will go down by 0.6 percent, thanks to The One, Big, Beautiful Bill - proof that program integrity and accountability put downward pressure on costs.
• Additionally, the new program integrity rules by the Trump Administration will block improper enrollments and prevent as many as 500,000 fraudulent subsidies in a single year, according to CBO.

Bottom Line: Democrats' expansion of Obamacare subsidies prioritized illegal immigrants and fraudulent enrollees over hardworking Americans. The One, Big, Beautiful Bill ends these taxpayer-funded handouts and restores fairness, accountability, and the rule of law in our health care system.