$1 BILLION Medicaid Payout to illegal aliens
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In a recent appearance on Fox News’ “Fox & Friends,” Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz revealed findings from an internal review indicating that more than $1 billion in federal Medicaid funds have been allocated to healthcare for undocumented immigrants across several states. This announcement comes amid ongoing debates over government spending and immigration policy in the Trump administration.
Dr. Oz, a former television personality and heart surgeon appointed to lead CMS earlier this year, described the discovery as part of efforts to address fraud, waste, and abuse in the Medicaid program. He accused Democrats of “gaslighting” Americans on the issue, claiming that taxpayer dollars from states like Texas and Florida are being redirected to fund expansive benefits in states such as California. “If you live in Texas or Florida, and you’re paying U.S. federal taxes—most people do—your money is being diverted to places like California who have robust benefits for illegal immigrants,” Oz stated during the interview.
The CMS review, which Oz said is ongoing and has so far examined only a handful of states, uncovered these payments despite federal laws generally barring undocumented immigrants from full Medicaid eligibility. However, undocumented individuals can access emergency Medicaid services under federal law, which covers urgent medical needs regardless of immigration status. Some states have used state-only funds or other mechanisms to expand coverage, leading to what the administration views as improper use of federal dollars.
Millions of illegal aliens had been receiving Medicare right up to the very day they were deported and there are millions more yet to remove.
The White House has echoed Oz’s concerns, asserting that Democratic proposals could result in nearly $200 billion spent on healthcare for non-citizens over the next decade—a figure comparable to funding the Children’s Health Insurance Program. This revelation has intensified partisan clashes, particularly as it coincides with a government shutdown entering its third week, where Republicans accuse Democrats of prioritizing immigrant healthcare over fiscal responsibility.
CMS has been ramping up oversight since May 2025, announcing measures to crack down on states allegedly misusing federal Medicaid funds for undocumented immigrants. Actions include focused evaluations of state programs and efforts to shut down perceived loopholes. The agency estimates that up to 1.4 million undocumented individuals may be improperly receiving benefits, prompting plans to remove them from rolls.
Critics, including immigrant advocacy groups and Democratic lawmakers, argue that the figures may primarily reflect emergency care mandated by law, such as the Emergency Medical Treatment and Labor Act (EMTALA), which requires hospitals to provide stabilizing treatment without regard to ability to pay or citizenship. A fact-check from the National Immigration Law Center (NILC) notes that recent budget legislation has actually reduced federal funding for certain lawfully present immigrants, potentially leading to 1.2 million non-citizens losing Affordable Care Act subsidies. NILC also references a Congressional Budget Office (CBO) estimate of $27 billion in emergency Medicaid spending over seven years, suggesting the $1 billion cited by Oz could be part of legally required expenditures rather than widespread fraud.
Democratic leaders, such as House Minority Leader Hakeem Jeffries, have warned that Republican-led reforms could result in the largest Medicaid cuts in history, potentially harming vulnerable Americans. Sources from outlets like MSNBC highlight that undocumented immigrants are already excluded from most federal health programs, and framing emergency care as optional benefits misrepresents the issue.
This announcement underscores broader tensions in U.S. healthcare and immigration policy. As CMS continues its investigation, the debate over how taxpayer funds are allocated is likely to persist, influencing upcoming budget negotiations and political discourse.
