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flag Five states spent over $1B in federal Medicaid funds on undocumented immigrants, prompting federal recovery efforts.

flag A federal audit reveals five states spent over $1 billion in Medicaid funds on undocumented immigrants, violating federal law. flag Dr. Mehmet Oz, CMS administrator, said taxpayers in states like Texas and Florida are subsidizing healthcare for undocumented individuals in places such as California. flag The Trump administration plans to reclaim the funds, citing misuse of emergency Medicaid—originally for life-saving care regardless of status—and other legal loopholes like "qualified alien" status or asylum designations. flag California led with $4.5 billion in federal emergency Medicaid spending for undocumented immigrants in 2024. flag Some states claim to use only state funds but exploit federal matching systems by taxing providers and reinvesting revenue. flag Critics argue the practices misallocate taxpayer money, while states defend them as humanitarian or fiscally responsible.

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