22 More People, Entities Charged in Arizona Medicaid Fraud Scheme

An Arizona grand jury has indicted 22 individuals and entities linked to a massive Medicaid fraud scheme involving sober living homes.

The charges include money laundering, theft, conspiracy, fraudulent schemes, patient referral fraud, and forgery, Arizona Attorney General Kris Mayes announced Tuesday.

These indictments are part of an ongoing investigation into a $2.7 billion fraud that exploited Arizona’s health care system, particularly targeting Native Americans seeking treatment for drug and alcohol addiction.

According to the charge document, the 20 individuals indicted are associated with a church and a mental health organization called Happy House Behavioral Health. Prosecutors allege that Happy House was paid over $60 million for services that were either never rendered or only partially completed. Some of the billing, they say, was for clients who were deceased or incarcerated.

Prosecutors also allege that sober living facilities referred clients to Happy House, which in turn received funds from the Arizona Health Care Cost Containment System (AHCCCS), the state’s Medicaid agency. Happy House then allegedly paid the referring sober homes for those client placements, an arrangement at the center of the fraudulent scheme charges.

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USDA Approves Nebraska’s Banning Soda and Energy Drinks From Food Stamps

Secretary of Agriculture Brooke Rollins issued a waiver on May 19 restricting the use of Supplemental Nutrition Assistance Program (SNAP) funds to buy soda or energy drinks in Nebraska, the U.S. Department of Agriculture (USDA) said in a May 19 statement.

This is the first-ever state waiver banning soda and energy drinks from SNAP, popularly known as food stamps.

“Prior to this waiver, SNAP recipients could buy anything except alcohol, tobacco, hot foods, and personal care products,” said the statement.

The waiver, which takes effect on Jan. 1, 2026, is part of the Trump administration’s Make America Healthy Again agenda, the USDA said, adding that this “historic action seeks to reverse alarming disease trends across the country.”

One in three children between the ages of 12 and 19 is affected by prediabetes, it said. Forty percent of school-aged children and adolescents suffer from at least one chronic condition, while 15 percent of students in high school drink a minimum of one soda per day.

President Donald Trump signed an executive order in February establishing the President’s Commission to Make America Healthy Again. The agency is tasked with investigating the “root causes of America’s escalating health crisis,” including chronic disease among children, according to a White House fact sheet.

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Members Of Congress Want Federal Investigation Into Use Of Florida Medicaid Funds To Oppose Marijuana Legalization By Group Tied To DeSantis

Two Democratic members of Congress representing Florida are asking the federal government to investigate what they describe as “potentially unlawful diversion” of millions in state Medicaid funds via a group with ties to Gov. Ron DeSantis (R). The money was used to fight against a citizen ballot initiative, vehemently opposed by DeSantis, that would have legalized marijuana for adults.

Reps. Kathy Castor and Darren Soto sent a letter on Thursday to the Department of Health and Human Services (HHS) inspector general as well as Mehmet Oz, the administrator of the Centers for Medicare and Medicaid Services, formally requesting they initiate a Medicaid fraud investigation.

“The diversion of Medicaid dollars requires immediate investigation,” the two lawmakers wrote. “These are proceeds that rightfully belong to state taxpayers to serve the citizens who rely on Medicaid, including children, pregnant women, neighbors with disabilities and those served by long-term care.”

The two lawmakers, members of a House committee with oversight of Medicaid, emphasized that Congress is “very focused on waste, fraud and abuse of Medicaid dollars.”

“Any unlawful diversion of Medicaid dollars in Florida,” they wrote, “means that the state is less able to provide services to our neighbors who rely on Medicaid and the providers who serve them.”

The letter follows allegations that a $10 million donation from a state legal settlement was improperly made to the Hope Florida Foundation, which later sent the money to two political nonprofits, which in turn sent $8.5 million to a campaign opposing the proposed marijuana legalization ballot measure, Amendment 3.

Notably, the Hope Florida Foundation was founded by Florida First Lady Casey DeSantis, the governor’s wife.

“On October 17, Secure Florida’s Future donated $2 million to Keep Florida Clean Inc., a Political Action Committee (PAC) controlled by Governor DeSantis’s then-chief of staff James Uthmeier that was created to campaign against Amendment 3,” the lawmakers’ new letter says. “Governor DeSantis strongly opposed Amendment 3. Days later, Secure Florida’s Future sent Keep Florida Clean Inc. an additional $1.75 million.”

“On October 22, the Hope Florida Foundation wired $5 million to the 501(c)4 nonprofit Save Our Society from Drugs that proposed spending the ‘grant’ on ‘developing and implementing strategies that directly address the substance use crisis facing our communities,’” it continues, detailing the alleged impropriety. “On October 23, the next day, Save Our Society from Drugs donated $1.6 million to Keep Florida Clean Inc. Over the coming days, Save Our Society from Drugs donated an additional $3.15 million to Keep Florida Clean Inc.”

“While there are limited financial disclosure requirements associated with 501(c)4 organizations,” the lawmakers said, “records appear to show that a total of $8.5 million from the Centene settlement with AHCA went from the Hope Florida Foundation to the Amendment 3-focused Keep Florida Clean, Inc. PAC, the same PAC that also donated funding to the Republican Party of Florida and the Florida Freedom Fund. ”

“Hope Florida had raised only about $2 million during its three years of existence,” they pointed out, “but in one fell swoop, received $10 million from a Medicaid settlement, which was immediately funneled through other nonprofits to a PAC directed by the Governor’s Chief of Staff.”

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Gov. Abbott Requests Waiver to Ban Unhealthy SNAP Purchases in Texas

Gov. Greg Abbott has formally requested a waiver from the U.S. Department of Agriculture to prohibit the use of Supplemental Nutrition Assistance Program benefits for the purchase of unhealthy foods, such as soda and candy. 

The move, announced in a letter sent to U.S. Secretary of Agriculture Brooke Rollins, marks a significant push to reshape the nutritional standards of SNAP purchases in Texas.

SNAP, formerly known as food stamps, is the largest federal nutrition assistance program, helping over 41 million Americans afford groceries each year. While the program’s stated goal is to increase access to nutritious food, critics argue that a substantial portion of SNAP benefits are currently spent on items with little or no nutritional value.

USDA data cited by Texas lawmakers indicates that about 20 percent of SNAP dollars go toward sugary drinks and snack foods, with sweetened beverages alone accounting for 9.3 percent of expenditures.

Abbott’s letter emphasizes that SNAP was created to promote nutrition and health, but instead “many SNAP purchases are for food with little to no nutritious value.” He wrote that the waiver would ensure “taxpayer dollars are used only to purchase healthy, nutritious food.”

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California Expands Digital ID Programs for Public Services, Despite Privacy Concerns

California is accelerating its push into digital identity, with officials launching new pilot programs designed to streamline how residents access public services. But while the state promotes the convenience and efficiency of these efforts, the broader implications for privacy and data control remain a growing concern among advocates for digital rights.

Jonathan Porat, California’s chief technology officer, said the state’s Department of Technology is moving ahead with new collaborations following initial efforts that included the mobile driver’s license launched last fall and a single sign-on pilot through Login.gov tied to transportation benefits.

That project, run through the Cal-ITP platform, lets eligible residents access transit discounts using a contactless payment system linked to their identity. Seniors, veterans, and others were able to verify eligibility for reduced fares without presenting physical documentation. According to Porat, the project’s success in Monterey County and Santa Barbara led the state to explore expanding the system to more than a dozen other local transit agencies.

But while the state touts these pilots as progress toward modernizing access to benefits, the increasing reliance on digital credentials has sparked important questions about surveillance, data sharing, and long-term risks.

California’s approach differs from other states that have focused on digital IDs primarily for age or identity verification. Porat explained that the state wants to use these tools to confirm eligibility across a range of public services. “We’re proud as a state to have [a mobile driver’s license] as well, but we’re really thinking about, how can we digitize the way that we validate residents’ identities and eligibility for different programs,” he said.

That vision includes broader partnerships, including with federal agencies like the VA and CMS. “What we’re doing now is trying to expand the breadth of those different benefits programs,” Porat said. “So we started by looking at a couple of simple things, like age-related discounts, and now we’re going so far as to have agreements with the federal VA and CMS, the group that manages Medicare and Medicaid, so that if you receive disability, if you are above a certain age, if you have a certain status, you can get those discounts automatically, just by paying with your wireless payment.”

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Gavin Newsom Scales Back Plan to Provide Illegal Aliens With Free Healthcare as California’s Financial Crisis Deepens

California Governor Gavin Newsom is scaling back his ludicrous pledge to offer free healthcare to all illegal aliens in the state.

His 2025–26 budget proposal, released Wednesday, includes a freeze on new Medi-Cal enrollments for adults without legal immigration status and imposes a $100 monthly premium for those already enrolled.

The freeze would begin in 2026, affecting new applicants over the age of 19.

According to Newsom’s office, the change will not impact those currently enrolled or those receiving limited emergency or maternity coverage.

The new premium would apply starting in 2027 to all adults with what the administration calls “unsatisfactory immigration status,” a term that includes both illegal aliens and certain legal residents ineligible for federal Medicaid.

Newsom’s office says the revised policy is necessary due to a $16 billion shortfall in state revenue, driven in part by ballooning Medi-Cal costs linked to his earlier expansions.

Rather than his own failings and the mismanagement of Democratic authorities, Newsom cited Trump’s decision to impose tariffs as justification for the shortfall.

“California is under assault,” Newsom said. “The United States of America, in many respects, is under assault because we have a president that’s been reckless in terms of assaulting growth engines.”

However, Newsom insisted that he was not cancelling the program altogether.

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GOP Congressman Humiliates a Grandstanding AOC as She Plays to the Cameras While Asking Questions About Medicaid – AOC Then Completely Snaps

Far-left Rep. Alexandria Ocasio-Cortez (D-NY) lost it early this morning after a GOP congressman humiliated her by calling out her grandstanding tactics during a committee hearing.

While the House Energy and Commerce Committee hearing entered the early morning hours as part of its marathon mega bill markup, AOC attempted to disassemble the GOP’s plans to reform Medicaid by asking witnesses a series of leading questions. Of course, she wanted to play to the cameras at the same time.

When she did finally act like a professional, Rep. Randy Weber (R-TX) took notice and roasted her.

“Um, in terms of some of the exemptions, pregnancy is covered, correct?” AOC asked.

“May I interrupt? I’m glad you’re addressing us instead of addressing the camera,” Weber quipped.

AOC then repeated her question about pregnancy, and the witness answered that pregnancy was covered. AOC then tried to ask a gotcha question about abortion laws.

“Given the Dobbs decision and the fact that many women and the fact that many women in many states are forced to…” she began before Weber cut her off.

“Okay, what about miscarriage?” AOC asked.

“Reclaiming my time. I just want to make the point that we’d like for you to address the Republicans and let’s have a dialogue this way & not through a camera,” Weber said.

“But, but, I’m just asking about a miscarriage,” AOC whined.

“The gentlelady is out of order!” Weber shouted.

A short time later, AOC started grandstanding again after getting some backup from Rep. Yvette Clarke.

“There are 13.7 million Americans on the other side of that screen there. Hello, hello,” Ocasio-Cortez stated, waving to the camera. “I’m talking to you because I work for you. They deserve to see what is happening here because there are plenty of districts, including Republican ones, where 25 percent of your constituents are on Medicaid, 40 percent of your constituents are on Medicaid.”

“Will the gentlelady yield?” Weber asked.

Upon hearing this, AOC finally snapped completely.

“I will not yield because it was a terribly disrespectful comment, and I will not yield to disrespectful men!” she whined.

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Report: Biden Admin Paid $271 Million In Unemployment Checks To Millionaires In Two Years

Good news for millionaires and billionaires: They are currently eligible for unemployment benefits, whether they need it or not. That has been true since 1964 when the Department of Labor determined unemployment is for all eligible workers no matter their income level.

In 2022, The Biden Administration paid unemployment compensation to 5,773 people earning $1 million or more, with nearly $58 million going to out-of-work millionaires. It is an average of nearly $10,000 per person.  

In 2021, a COVID quarantine year with extra dough baked into unemployment, 14,972 people earning $1 million or more received unemployment compensation. The Biden Administration spent nearly $214 million keeping millionaires fed, paying an average of $14,200 each.

(As the Federalist previously reported, 2021 and 2022 were also banner years for unemployment fraud, in which fraudsters including prisoners and dead people placed multiple claims.)

Combine the years and individuals earning more than $1 million annually received more than $271 million in unemployment during the first two years of the Biden Administration.

These numbers are part of a report by the Congressional Research Service (CRS), prepared for Sen. Joni Ernst, R-Iowa, the Senate DOGE Caucus chair. CRS looked at tax returns and counted individuals who earned over $1 million and also received unemployment.

“Our nation’s safety net shouldn’t be strained by subsidizing the lifestyles of the self-sufficient,” Ernst said in an email. “Able-bodied millionaires shouldn’t expect handouts paid for by overtaxed and overworked Americans. The freebies for free-loading fat cats are over.”

Being fired from a job can be devastating. Getting turned down for unemployment benefits even more so, especially when living paycheck-to-paycheck at $30,000 with nothing in savings. It happens. Not everyone is eligible for the unemployment safety net, which is a fraction of your pay before being separated from employment.

When income stops, it sure would be nice to have $1 million in income from another income stream. Maybe you own some rental properties, have good investments, or earned enough to save. If you only had an even $1 million, it would be just over $83,000 a month.

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DHS Probes Whether California’s Noncitizen Handout Program Is Paying ‘Ineligible Illegal Aliens’

The Trump administration is investigating whether California’s Cash Assistance Program for Immigrants (CAPI), a program that pays state money to noncitizens who are not eligible for Social Security benefits because of their immigration status, is paying “ineligible illegal aliens.”

Noncitizens who are over 65, blind or disabled, and are ineligible for Social Security benefits — specifically Supplemental Security Income and State Supplementary Payment — due to their immigration status alone, can receive CAPI benefits. Those eligible can typically receive up to $1,206.94 a month, according to California Disability Benefits 101.

U.S. citizens are not eligible to receive CAPI. In July 2024 alone, CAPI paid 16,852 recipients, a state report shows.  

CAPI benefits are purportedly reserved for eligible noncitizens who are legally present in the U.S. or meet refugee criteria. However, ICE Homeland Security Investigations served a subpoena Monday to the Los Angeles County Department of Public Social Services, which administers CAPI, to “determine if ineligible illegal aliens received Supplemental Security Income (SSI) from the Social Security Administration” from January 2021 to present.

According to the DHS, the subpoena requests applicant information, including name and date of birth, application copies, immigration status, and proof of ineligibility for benefits from the Social Security Administration.

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House GOP Floats Proposal To Ensure Non-Citizens Do Not Receive Tax-Funded Food Stamps

House Republicans are proposing to bar most non-citizens from receiving taxpayer-funded benefits, including food stamps, in President Donald Trump’s “one big, beautiful bill.”

GOP lawmakers are pursuing an extensive overhaul of the Supplemental Nutrition Assistance Program (SNAP) to help offset the cost of the president’s tax priorities. The House Agriculture Committee will include a provision in their draft bill to restrict SNAP benefits to those who are citizens or lawful permanent residents following Republican Illinois Rep. Mary Miller’s request to the panel to prohibit certain non-citizens from receiving food stamps. 

“Taxpayer-funded benefits like SNAP are intended for Americans in need, not foreigners who break the law to enter this country,” Miller told the Daily Caller News Foundation. “That’s why I fought to include my proposal in the Agriculture Committee’s reconciliation plan, saving taxpayers up to $8 billion over the next decade and reversing Biden’s unlawful handouts given to millions of illegal aliens. I appreciate my colleagues on the committee for working with me to include this critical reform in President Trump’s One Big, Beautiful Bill.”

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