ICE Defunding Raised by Rep. Moulton on 'Shutdown-Worthy' Grounds
Rep. Moulton's bill seeks to reverse a $75 billion funding boost for ICE and return the agency's budget to $10 billion annually.

Representative Seth Moulton has launched a bold legislative attack on the funding of Immigration and Customs Enforcement (ICE), stating that the agency's budget should be slashed to pay for health care. The Massachusetts Democrat introduced a bill on Wednesday that would strip billions of dollars from the immigration agency and use the money to restore tax credits for health insurance that recently expired. Moulton has declared this issue important enough to risk shutting down the federal government.
The proposal comes at a time of high tension in Washington. Public anger is growing following the fatal shooting of a woman by an ICE agent in Minneapolis earlier this month. At the same time, Congress is racing against a deadline of 30 January to agree on a spending plan or face another government shutdown.
'We absolutely want to extend the ACA premiums tax credits, they shouldn't be lapsing, but we're funding it by taking money from ICE's budget,' Moulton said in an interview. He described the priorities of President Donald Trump's administration as 'completely out of whack'.
Reversing the 'One Big Beautiful Bill'
Moulton's new legislation targets a massive funding increase that ICE received last year. Through a package known as the 'One Big Beautiful Bill', the Trump administration secured $75 billion (£61 billion) in funding for the agency to last through 2029. This nearly tripled the agency's previous budget.
Full release here: https://t.co/H1IAcNBdZz
— Rep. Seth Moulton Press Office (@RepMoulton) January 14, 2026
Moulton argues that this spending is wasteful, especially as American families are struggling with higher costs. At the start of the new year, subsidies that helped people pay for health insurance under the Affordable Care Act (ACA) expired. This has left many people facing much higher bills for their medical cover.
The proposed bill would return ICE's annual budget to its previous level of roughly $10 billion (£8.2 billion). The remaining money would be 'repurposed' to fund the health care tax credits. Moulton has been joined by other Democrats, including Representatives André Carson of Indiana, Darren Soto of Florida, and Sylvia Garcia of Texas, who have all signed on to support the bill.
Minneapolis Shooting Fuels Political Fire
The push to defund the agency is not just about money; it is also a response to violence. Moulton has been a vocal critic of the recent shooting in Minneapolis, where 37-year-old Renee Good was killed by an ICE agent. While the Trump administration has defended the agent's actions as self-defence, Moulton did not mince his words.
'What happened in Minnesota was an outright murder for anyone who can look at it with their own two eyes, and we should not be funding the continuation of ICE terrorising American cities,' Moulton stated.
He revealed that even some members of the Republican party are privately worried. According to Moulton, a Republican colleague—a former law enforcement officer—approached him after the shooting and called the incident 'criminal'. However, Moulton claims these Republicans are 'too scared of Donald Trump' to say so in public.
Risking a Government Shutdown
The timing of this bill is critical. Congress must pass a spending law by 30 January to keep the government open. The last shutdown lasted a record 43 days because Democrats refused to support a funding deal that let health subsidies expire.
When asked if the issue of ICE funding was worth another shutdown, Moulton said it 'certainly should be'. This stance suggests that the upcoming negotiations will be very difficult. More than a dozen House Republicans recently broke ranks to vote with Democrats to extend health care aid, showing that the President's grip on his party may be slipping on this specific issue.
Battles for the Senate and Accountability
Moulton is currently challenging Senator Ed Markey for a seat in the US Senate. This rivalry has seen both men introducing bills to hold law enforcement accountable. Recently, Senator Markey and Representative Ayanna Pressley filed a bill to remove legal protections that shield police and federal agents from being sued.
Moulton has also filed his own legislation, the NOEM Act (National Oversight and Enforcement of Misconduct Act). This would allow victims to sue federal immigration officers in court if their rights are violated, a right that currently exists for victims of local police misconduct but not always for federal agents.
As the 30 January deadline approaches, Moulton is making it clear that he believes Congress must choose between funding an aggressive border agency or helping Americans pay for their doctors.
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