“California Launders Medicaid Funds for Illegals”

Last week, Vice President J.D. Vance warned Democrats were pushing the government toward shutdown over demands to fund health care for illegal immigrants. Democrats denied it, and fact-checkers downplayed the claim as “semantics.” But the data tell another story.

Spending on Medicaid funding for illegal immigrants nearly tripled last year — from $3.8 billion to $9.1 billion. Why? Because California exploited a loophole. Although Medicaid law excludes unauthorized residents, states can claim federal reimbursements for “emergency services.”

California reclassified billions in health spending as “emergency care,” even after launching a full-scale program to provide comprehensive health benefits to undocumented immigrants.

In 2024, Washington reimbursed 70% of California’s Medicaid spending under this loophole, effectively subsidizing the state’s $8.5 billion program for 1.6 million illegal immigrants. What was sold as a “state-only” benefit has become a federal taxpayer burden.

Liberal fact-checkers insist that “less than 1%” of Medicaid goes to undocumented immigrants. But that 1% represents billions, and California’s maneuver proves how Medicaid funding for illegal immigrants can be scaled to levels Congress never intended.

Until loopholes are closed, Democrats’ claim that federal money isn’t being used for unauthorized immigrant health care simply doesn’t hold up.

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