Trump Admin Vows to Recoup $1B in Medicaid Funds for Illegal Immigrants
The Trump administration has announced its intent to reclaim over $1 billion in federal Medicaid funds it claims were improperly used by Democrat-led states to provide healthcare for illegal immigrants, some of whom have violent criminal histories. According to a preliminary audit by the Centers for Medicare and Medicaid Services (CMS), states such as California, Illinois, and Oregon combined spent approximately $1.35 billion in Medicaid funds on illegal immigrants over the past few years, primarily during 2024 and 2025.
Federal Medicaid regulations prohibit the use of these funds for healthcare for illegal immigrants, though they can be used for emergency treatment regardless of citizenship. States may also legally cover health insurance for illegal immigrants using state tax dollars, yet experts indicate Democrats are exploiting legal loopholes to provide comprehensive benefits. CMS spokesperson Emily Hilliard emphasized that protecting Medicaid from fraud and abuse is a legal requirement, and the administration is committed to recovering every dollar and holding states accountable.
California, which spent over $1 billion on illegal immigrant healthcare, is the most significant perpetrator, according to CMS. Illinois and Oregon followed with nearly $30 million and $5.5 million in improper spending, respectively. California Governor Gavin Newsom’s office denied the allegations, calling them ‘false,’ while Steve Hilton, a Republican candidate for California governor, argued the state uses a ‘provider tax’ to obtain federal Medicaid funds for undocumented immigrants. Public health policy expert Chris Pope criticized California’s use of federal provisions for emergency care for undocumented aliens, suggesting it’s an abuse of the system.
Acting Director Jim O’Neill of the Centers for Disease Control and Prevention highlighted cases where Medicaid funds went to illegal immigrants with violent criminal backgrounds, such as Layth Kamil, convicted of exposing himself to a minor, and Haissam Massalkhy, who killed an American during a DUI incident. O’Neill’s posts on ‘MorningMedicaidMugshot’ have drawn attention to these cases, criticizing Democrats for funding such healthcare as a condition for government funding. The controversy continues as the administration faces legal and political challenges in its efforts to recover the disputed funds.