The Trump administration is working to recover over $1 billion in federal Medicaid money that it claims is being used to benefit illegal immigrants in blue states.
According to the Centers for Medicare and Medicaid Services (CMS), California is the largest offender, having spent over $1.3 billion in federal Medicaid dollars on healthcare for illegal immigrants. Other states and districts, including Illinois, Oregon, Washington, D.C., and Colorado, have also misused the funds, with Illinois spending around $30 million.
House Majority Whip Tom Emmer, R-M.N., said the law prohibits this from happening.
A preliminary audit by CMS found that multiple states were using the money improperly, mostly during 2024-2025. The Trump administration is planning to recover the misused funds.
Author's summary: Trump admin seeks $1B Medicaid refund.