Some lawfully present people would meet a health tax-credit test

Federal tax rules would treat covered lawfully present taxpayers as meeting the taxpayer requirement for the health insurance premium tax credit. This covers taxpayers at or below the poverty line who cannot get Medicaid because of immigration status. For this credit, their household income would be counted as exactly 100% of the poverty line for their family size. This rule would apply to tax years beginning after December 31, 2025.

A state could choose the maximum household income allowed for its Basic Health Program. This choice would apply to household income eligibility for a state's Basic Health Program. The chosen ceiling must be at least 200% and no more than 250% of the poverty line. The state option would apply to plan years beginning on or after January 1, 2027.

Federal tax law would make each provision amended by section 71301 read as though that section had never been enacted. This applies to premium tax-credit provisions for lawfully present people that section 71301 of Public Law 119–21 amended. Each affected amendment would take effect as though included in the related provision of Public Law 119–21.