Report: Illegal Immigrants Collected $7 BILLION in Medicaid Payments

Washington is once again at a standstill, but this shutdown is not about budget math or routine partisan squabbles.

At its core, the fight centers on one question that should be obvious: Should Medicaid, a safety-net program designed for low-income Americans, be stretched to cover illegal immigrants? 

Democrats have answered yes, Republicans no—and the standoff has left taxpayers caught in the middle.

The fight began with the passage of the Big Beautiful Bill earlier this year. One of its most important provisions closed a Medicaid loophole that allowed states to pass the cost of illegal immigrant health care onto federal taxpayers. 

That reform required states to fund those services themselves instead of exporting the bill nationwide. 

Democrats are now demanding that this provision be undone, and their refusal to compromise has kept the shutdown going.

California illustrates how large the abuse has become. 

In 2023, the state set aside $3.9 billion in Medicaid funds for medical services for illegal immigrants. 

Because the federal government typically reimburses around 70% of Medicaid spending, taxpayers across the country ended up footing most of that bill. 

To squeeze even more money from Washington, California raised provider taxes on hospitals and nursing homes, then cycled the revenue back through inflated Medicaid payments. 

On paper, the state appeared to spend billions more. In reality, it was a budgetary trick designed to capture federal dollars and shift costs to the rest of the country.

New York followed the same playbook, allocating $2.4 billion in 2024 to extend full Medicaid benefits to illegal immigrants under 65. 

Illinois expanded coverage to noncitizens over 42. 

The strategy is consistent: inflate Medicaid spending, collect federal reimbursements, and redirect money to people who are not legally eligible. 

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Dems Want Medicaid For Millions Of Biden-Era Migrants But Use Sneaky Wordplay To Pretend They Don’t

The federal government shut down on Wednesday after Democrats refused to vote on a clean continuing resolution to keep the government funded for the next seven weeks. When Republicans pointed out that Democrats were unwilling to vote to fund the government without restoring health care eligibility for illegal aliens, the media and other Democrats jumped into action, “fact-checking” Republicans and claiming that wasn’t true.

These “fact checks” rely on the ludicrous claim that foreign citizens who were dumped into the United States by the millions by the Biden administration via blanket parole grants are not really “illegal” aliens.

Democrats refused to fund the government without funding proposal that would, in part, rescind Subtitle B in Title VII of the One Big Beautiful Bill. That section had narrowed the eligibility requirements for government health care benefits (like Medicaid), restricting eligibility for certain foreign nationals, such as the 2.8 million otherwise inadmissible aliens who received blanket parole into the United States from the Biden administration.

But rather than acknowledge that Democrats’ proposal would extend federal health care to parolees, leftist mouthpieces insist that those millions of parolees don’t count as “illegal aliens” and therefore that no illegal aliens are getting Medicaid benefits.

That’s what Neera Tanden is doing when she insists the Affordable Care Act “bans care for illegal aliens.”

Or Minnesota Sen. Tina Smith, who claimed: “Undocumented immigrants aren’t even *allowed* to access Medicare, Medicaid or ACA credits.”

Rhode Island Sen. Sheldon Whitehouse said in an X post: “‘Health care for illegal aliens’ is the new ‘immigrants are eating cats and dogs in Springfield.’ The Republican playbook is simple: make up a baseless lie, repeat it every chance you get, hope and pray that everyone blames Democrats for the crises you created.”

Sen. Kirsten Gillibrand said: “To be clear, undocumented immigrants aren’t even allowed to enroll in federally funded health coverage.”

House Minority Leader Hakeem Jeffries told CNBC it is an “outright lie” and that “federal law prohibits the use of taxpayer dollars to provide medical coverage to undocumented individuals.”

New York Rep. Jerry Nadler said on X that “undocumented immigrants are not eligible for the ACA. Period.”

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Fraudsters stole about $320 million in SNAP benefits over 2-year period: GAO

A new Government Accountability Office report calls for the Agriculture Department to take stronger steps to assess how states are implementing security measures to prevent theft of Supplemental Nutrition Assistance Program (SNAP) benefits on electronic benefit transfer cards.

The report released Thursday found states use a range of tools recommended by USDA’s Food and Nutrition Service to prevent theft but many of the measures require SNAP recipients to take individual action, “which can affect how widely they are used.”

According to the GAO, SNAP benefits can be stolen by such methods as card skimming, card cloning, phishing and spoofing attacks, which involve tricking recipients into revealing personal information. 

Fraudsters also pretend to be legitimate SNAP retailers to steal information and have been known to use bots to identify valid PIN combinations for accounts.

State SNAP agencies “replaced over $320 million in stolen benefits with federal funds for nearly 679,000 households in 52 states” during the period of October 2022 to December 2024, the report said.

“Theft of benefits could leave victims without means to purchase food, particularly since benefits stolen on or after December 21, 2024, are not eligible for replacement with federal funds,” the GAO said.

However, the GAO noted that available data, in fact, understates the scale of SNAP theft, given that states are not required to report every occurrence.

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Trump’s HHS Overhauls Welfare Program with Focus on Accountability

The U.S. Department of Health and Human Services, through the Administration for Children and Families, selected Arizona, Iowa, Nebraska, Ohio, and Virginia to participate in the redesigned Temporary Assistance for Needy Families pilot.

This pilot will test innovative approaches to promote employment, reduce government dependency, and strengthen family outcomes. 

Authorized under the Fiscal Responsibility Act of 2023, the six-year pilot will replace the Work Participation Rate and instead measure state success using new, outcome-based metrics that aim to deliver real results for families and taxpayers. 

For example, states will now be held accountable for improving employment outcomes, supporting earnings growth, and reducing reliance on cash assistance, Medicaid, and Supplemental Nutrition Assistance Program (SNAP) benefits.

“The Trump Administration is returning to the original promise of welfare reform—ensuring our programs are laser-focused on helping families achieve lasting self-sufficiency while delivering results for taxpayers,” said ACF Acting Assistant Secretary Andrew Gradison. “This pilot marks the beginning of a new era where states are empowered to test new strategies, achieve real outcomes, and build an evidence base for innovations that drive upward mobility in America.”

The federal agency posted on social media:

“ACF is launching the redesigned TANF pilot with newly selected states: AZ, IA, NE, OH, & VA. The 6-year pilot will test new ways to: Promote work Strengthen family stability Reduce dependency.”

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SNAP Fraud Has Doubled Since Last Year. Here’s Why.

Criminals are looting public safety net programs using digital tools, according to a new report released by LexisNexis Risk Solutions. 

The report analyzed reported fraud in the Supplemental Nutrition Assistance Program and Integrated Eligibility Systems. Fraud in the SNAP program has doubled, the report said. 

The 54-page report reveals that the cost and volume of SNAP fraud have risen sharply over the past year, driven by the accelerated shift to digital channels, increasingly sophisticated Electronic Benefits Transfer theft schemes, and complex multi-program eligibility systems. 

The findings of this year’s report are especially significant given the administrative and programmatic changes introduced to SNAP agencies across the country by House Resolution 1. 

According to the 2025 study, the average monthly rate of fraudulent SNAP applications and post-issuance cases has doubled since 2024. For every $1 in SNAP benefits lost to fraud, agencies now incur $4.14 in total costs, up from $3.93 a year ago.

“SNAP is a lifeline for millions of families, and these findings highlight how increasingly sophisticated criminals are targeting this critical benefit program,” said Amanda D’ Amico, Senior Director at LexisNexis Risk Solutions. “Digital channels and expanded eligibility systems improve access but also expand the attack surface. Agencies that leverage real-time data, identity verification, and digital authentication solutions to detect fraud and increase cross-program collaboration can turn the tide against fraud while ensuring timely benefits for those in need.”

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Zohran Mamdani Wants to Spend $100 Million in NYC Tax Dollars on Increased Services for Illegal Aliens

Zohran Mamdani, the communist running for mayor of New York City, wants to spend $100 million in tax dollars on increased services, specifically legal services, for illegal aliens living in the city.

It’s so stunning to see this man admit that he wants to take the hard earned dollars of the citizens of New York City and give the money to non-citizens who are in the country illegally, and yet is leading in the polls. Has everyone in New York City gone insane?

His candidacy is being driven by far left progressive hipsters in the city, but are they really the majority?

Townhall reported:

New York City’s sanctuary policies don’t go far enough for Democratic mayoral nominee Zohran Mamdani, who said on MSNBC’s “The Weekend” he wants to spend even more taxpayer money to help illegal immigrants if he’s elected…

“I would also commit to increasing the staffing of our law department by 200 to bring us back to pre-COVID levels, and to ensure that when we look at this city we are using every tool at our disposal to keep New Yorkers together, to keep families together,” the democratic socialist continued.

Mamdani emphasized the urgency of his plan, claiming “400,000 of our residents are right now in urgent risk of deportation.”

“The city knows that when it provides legal assistance to those same New Yorkers, their chances of going home increase 11-fold, and yet it has only assisted fewer than 200 of those New Yorkers,” he added. “That’s why also a cornerstone of our campaign is a commitment to increase funding for those very legal defense services by more than $100 million so we can ensure we’re taking every step we can to keep New Yorkers safe, to keep New Yorkers together, and to show the world that they are welcome in this city.”

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Refugees In Holland Can Obtain Social Housing Within 14 Weeks; Locals Wait Up To 12 Years

The Netherlands is the second most densely populated country in Europe, and with surging mass immigration, has been experiencing a raging housing crisis for years.

However, despite this crisis, refugees can gain access to social housing in a mere 14 weeks, while the average Dutch citizen must wait up until 12 years. Now, efforts are being made to right this injustice for Dutch citizens with a new bill, but Council of State, the country’s highest legal advisory body, is criticizing any attempt to block housing access to refugees. The authority claims refugees should receive equal treatment, as required by the Dutch constitution.

Of course, the fact that there is no equal treatment currently, and that refugees are gaining access to social housing years before Dutch on waiting lists, does not appear to factor into the Council of State’s concerns, according to Dutch news outlet NOS.nl.

The minister behind the proposal, Mona Keijzer of the BBB party, says she is not backing down. Keijzer’s plan aims to create more affordable housing by ensuring that refugees, or “status holders,” no longer receive priority for housing solely because of their status

The Council of State argues that the proposal leads to unequal treatment, which is “contrary to the Constitution.” The Council has advised the cabinet not to submit the bill to the House of Representatives.

However, Minister Keijzer is not swayed by the advice.

“That’s kind of how the discussion is conducted in the Netherlands. And that’s a shame,” she said. Regarding the “unconstitutional” judgment, she stated, “The Constitution is not mathematics, it also states that I must take care of public housing for Dutch people.”

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New Audit Reveals Shady Way Biden Increased Medicaid Spending

Those who reject the narrative that the budget reconciliation bill Congress enacted earlier this year “cuts” Medicaid have many places to look. After reports confirming federal spending on dead individuals and individuals in multiple forms of “free” health coverage simultaneously, federal auditors just revealed yet another example of Washington waste.

A recent Government Accountability Office (GAO) study quantified how the Biden administration allowed states to increase spending on Medicaid waivers. These policies, which the Trump administration should overturn, not only have the potential to cost taxpayers billions, but they have also expanded the welfare state yet again to cover far more than health care procedures.

Definition of Budget Neutrality 

The GAO study examined spending for Medicaid waivers, authorized by Section 1115 of the Social Security Act. Spending via these waivers, designed to promote state flexibility and innovation within the program, comprised about one-third of all federal spending on Medicaid, or $194 billion in 2023.

The Centers for Medicare and Medicaid Services (CMS) has long held that, for states to receive federal approval for their waiver applications, their Medicaid waivers must not increase costs to the federal government — that is, they must be budget neutral. But, as with the old axiom about beauty, budget neutrality lies in the eye of the beholder.

While the first Trump administration in 2018 issued guidance defining budget neutrality in ways that would protect taxpayers, the Biden administration undid that guidance in several key respects. The GAO report quantified the potential effects of those changes on federal spending — and, in one case, very clearly recommended that CMS undo one Biden-era policy.

Biden Increased Spending Benchmarks

The Trump administration’s guidance required states to calculate base year spending through actual spending data, rather than trending forward historical data. In other words, if a state had managed to lower its Medicaid spending in recent years, it couldn’t cherry-pick some time in the past and trend that year’s spending forward, to start its waiver with a higher base level of spending.

GAO said this change, when applied to waivers submitted by Tennessee and New York, lowered those waivers’ total spending limits by a total of $232.6 billion, with the federal share of that reduction amounting to $122.5 billion. (Time will tell whether the two states actually hit or exceed the spending limits for their respective waivers, so the total savings could be lower.)

But the revised guidance issued by the Biden administration said it would establish base years by using a blend of actual and historical spending — a change that weakened the fiscal discipline imposed by the Trump guidance. With respect to waivers submitted by three other states — Arizona, Massachusetts, and Washington state — GAO said this change increased the limit on Medicaid spending by $28.4 billion, with $16.6 billion of that potential cost hitting the federal government.

And whereas the Trump administration guidance said the growth rate for future years’ waiver spending (most waivers run in five-year increments) would be linked to the state’s actual spending growth during the last waiver period or the growth rate included in the president’s budget, whichever is lower, the Biden administration linked all states’ spending growth assumptions to the growth rate in the president’s budget. For the Arizona, Massachusetts, and Washington state waivers, GAO said this change raised the limit on Medicaid spending by $8.5 billion, with $4.3 billion of that potential cost hitting the federal government.

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Feds Charge Somalis with Massive $8.4 Million Medicaid Fraud

The U.S. attorney in Minnesota announced charges against eight Somali migrants connected to $8.4 million in Medicaid billing fraud hidden inside a state-funded housing program.

U.S. Attorney Joseph Thompson announced Thursday that an investigation found that the eight suspects provided Medicaid with long lists of “clients” who they claimed to have worked with to enroll into Minnesota’s Housing Stabilization Service and billed Medicaid for this work. But, investigators say that no such work was ever performed and the clients were fictional.

The HSS fraud only adds to the growing number of fraudulent and mismanaged state programs, including the hundreds of autism clinics that wasted tens of millions in state tax dollars, and the $250 million fraud in a coronavirus relief program that was supposed to pay for food for children.

“Most of these individuals did not receive the stable housing they so desperately needed,” Thompson said during a Thursday press conference said. “The money was just simply stolen.”

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Judge Blocks Trump Admin From Banning Illegal Immigrants From Social Programs

A federal judge on Sept. 10 ordered four federal agencies to stop banning illegal immigrants from programs such as Head Start, which provides child care for poorer families.

U.S. District Judge Mary McElroy said the Department of Health and Human Services (HHS), the Department of Justice, the Department of Education, and the Department of Labor must halt, at least for now, efforts to remove illegal immigrants from the programs.

HHS and other agencies said in July they were reinterpreting a federal law called the Personal Responsibility and Work Opportunity Reconciliation Act, which states that illegal immigrants cannot obtain “federal public benefits.”

Under previous interpretations, people accessing certain programs that lawmakers intended only for Americans and legal immigrants did not need to provide proof of legal status, officials said.

As Zachary Stieber reports for The Epoch Times, twenty attorneys general sued, alleging the new interpretation wrongly applied to programs that fell outside the act. In a motion for a preliminary injunction, or a block while the case proceeds, they also said that the government failed to provide “fair notice” to states of the change.

McElroy sided with the states, writing on Wednesday that “while reasonable policymakers can debate the merits of restricting access to programs to lawful citizens—and it is surely not this Court’s job to wade into that debate—the Agencies offer at best incomplete answers to serious questions.”

That appears to violate the Administrative Procedure Act, which lets judges block agency actions determined to be “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law,” she said.

McElroy also pointed to the change in interpretation from decades of precedent.

“The Government argues that it has somehow interpreted this statute incorrectly for the nearly thirty years that it has been the law,” she said.

“In its view, everyone (from every past administration) has misunderstood it from the start—at least until last month, when the right way to read it became clear to the Government. The Court is skeptical of that.”

The four agencies, which had pointed to an order from President Donald Trump that directed officials to make sure that taxpayer-funded benefits are not going to illegal immigrants, did not respond to requests for comment.

New York Attorney General Letitia James, a Democrat and one of the attorneys general who sued over the change, said in a statement that “with this victory, we are protecting children’s education, safeguarding critical health care, and preserving the safety net that keeps families afloat.”

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