September 02, 2025

CBO: One Big Beautiful Bill Reverses 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 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.

Chairman Arrington was joined by Ways and Means Committee Chairman Smith and Energy and Commerce Chairman Guthrie in requesting that CBO provide critical context behind their 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 instead ending billions in subsidies for illegal immigrants, cracking down on fraud, and restoring integrity to health care programs. CBO estimates that the new law’s policies on health insurance marketplace premium tax credit eligibility would reduce the number of ineligible individuals receiving taxpayer subsidies by 2.1 million in 2034.

Additionally, CBO confirmed Republican 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 through putting an end to these abuses.

Chairmen Arrington, Smith, and Guthrie released the following joint statement in response to CBO’s analysis:

"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."

BACKGROUND

The only populations affected 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 subsidy claims after years of Biden-Harris abuse of “lawful presence” definitions.

  • 700,000 individuals who refuse to comply with common-sense 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.

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.