2,300 DACA recipients in California to lose health insurance

By Aidin Vaziri, Staff Writer
July 31, 2025 - San Francisco Chronicle

More than 2,300 Californians enrolled in the Deferred Action for Childhood Arrivals program will lose their health insurance next month due to a change in federal policy, state officials announced Thursday.

The Centers for Medicare and Medicaid Services recently revised its rules to exclude DACA recipients from the definition of “lawfully present” under the Affordable Care Act. As a result, they are no longer eligible for coverage through federal health insurance programs.

Covered California, the state’s health insurance marketplace, said it will terminate coverage for affected enrollees on Aug. 31.

“Covered California is deeply disheartened by the updated rule issued by this federal administration, which targets DACA recipients who are working to provide for their families and secure access to essential health insurance,” said Jessica Altman, the agency’s executive director. “The decision is deeply unfair to hard-working, tax-paying individuals in California who trusted that they would have health insurance for 2025, only to have it stripped away eight months later.”

The change is part of a series of recent actions by the Trump administration aimed at restricting benefits for DACA recipients, also known as “Dreamers,” based on never-passed proposals in Congress called the DREAM Act.

Earlier this summer, the Department of Health and Human Services barred them from the federal health care marketplace, and the Department of Education launched investigations into colleges offering them financial aid.

Covered California said it is reaching out to all impacted individuals and providing guidance on alternative coverage options, including Medi-Cal, employer-based plans and private insurance.

Legal aid organizations and immigrant advocacy groups are also offering support.

The policy shift has intensified fear and uncertainty among many DACA recipients, most of whom have lived in the U.S. since childhood and remain ineligible for permanent legal status.

DACA provides temporary protection from deportation and work permits to about 525,000 individuals nndivationwide, the majority of whom live in California.