Trump Administration's Reform Proposal Targets Government Spending and Fraud

Sun Mar 16 2025 10:46:03 GMT+0200 (Eastern European Standard Time)
Trump Administration's Reform Proposal Targets Government Spending and Fraud

The latest policy changes aim to eliminate benefits for illegal immigrants and enforce stricter verification in healthcare subsidies.


The Trump administration is reinstating measures to curb government spending by reversing certain Biden-era policies. Key changes include ending healthcare coverage for DACA recipients, enforcing stricter income verification for subsidies, and shortening open enrollment periods to combat fraud and abuse in the system.

Article Text:
The Trump administration is taking decisive steps to address excessive government spending by reintroducing significant policies designed to combat fraud, terminate taxpayer-funded benefits for illegal immigrants, and apply stricter verification measures in the Obamacare Exchanges.

The Centers for Medicare and Medicaid Services (CMS) has unveiled a new rule that aims to reverse policies established during the Biden administration, re-establishing Trump's first-term reforms while addressing newly emerged challenges in the current healthcare framework. One of the most notable changes includes the cessation of Exchange coverage for DACA recipients, reversing Biden's policy that extended taxpayer-subsidized healthcare to illegal immigrants.

Republican attorneys general have successfully challenged Biden’s DACA healthcare expansion in multiple states, and should Trump’s proposed rule be enacted, it would potentially conclude the ongoing legal disputes and halt taxpayer-funded healthcare benefits for non-citizens permanently.

Moreover, the proposal emphasizes the need to prevent fraudulent claims for health subsidies, highlighting that some enrollees may misrepresent their income to gain access to larger government handouts. Under Trump’s plan, strict income verification measures will be enforced to ensure that subsidies reflect actual income levels, rather than exaggerated figures, requiring individuals who receive excess benefits to reimburse the government.

In addition, Trump’s reforms aim to close existing loopholes in special enrollment periods, stopping individuals from delaying their application until they become ill—a practice that can raise expenses for responsible Americans who regularly contribute to the system. The administration also plans to shorten the open enrollment period by one month to further discourage such abuses.

As government expenditure reaches unprecedented levels, Trump’s emphasis on fiscal responsibility, fraud prevention, and the elimination of benefits for illegal immigrants resonates as a significant adjustment for American taxpayers.

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