The bill reduces Federal spending and gives states more authority by excluding people designated as sex offenders from premium tax credits and Federal Medicaid matches, but it does so by cutting benefits to vulnerable individuals, shifting costs to states and safety-net providers, and raising civil-rights and administrative/privacy concerns.
Federal spending is reduced by excluding individuals designated as sex offenders from refundable ACA premium tax credits and by removing Federal Medicaid matching funds for medical care provided to this group, lowering federal outlays.
States gain greater discretion to deny or limit Medicaid coverage for people designated as sex offenders without increasing Federal expenditures, giving state governments more control over coverage decisions for this group.
Taxpayers who are not designated as sex offenders retain existing premium tax credit eligibility, avoiding disruption to benefits for the majority of marketplace enrollees.
People designated as sex offenders—and spouses on joint tax returns—will be ineligible for refundable premium tax credits, increasing out-of-pocket health costs for affected low-income individuals and imposing financial penalties on family members who were not convicted.
Medicaid beneficiaries designated as sex offenders who enroll or reenroll after enactment may lose access to covered medical services, risking worsened health outcomes for vulnerable beneficiaries including people with disabilities.
Excluding this group from Federal support is likely to shift costs onto states, hospitals, and local safety-net providers, increasing uncompensated care and potentially reducing services available to other Medicaid enrollees.
Based on analysis of 3 sections of legislative text.
Denies premium tax credits and federal Medicaid matching funds for individuals defined as sex offenders under the Adam Walsh Act, effective for taxable years and enrollments after enactment.
Introduced February 9, 2026 by W. Greg Steube · Last progress February 9, 2026
Denies two federal health-related benefits to people who are legally classified as sex offenders under the Adam Walsh Act: (1) the refundable premium tax credit for qualified marketplace health plans, and (2) federal Medicaid matching funds for medical assistance. The tax-credit denial applies to taxable years ending after enactment; the Medicaid change applies to individuals enrolled or reenrolled under a State Medicaid plan or waiver on or after enactment. Also establishes a short title for the law. The bill forces federal benefit programs to exclude persons meeting the Adam Walsh Act definition of “sex offender,” which will affect affected individuals, state Medicaid programs, and the administration of tax and Medicaid eligibility systems.