The Centers for Medicare & Medicaid Services (CMS) announced that preliminary audits found California improperly using $1,310,032,549 in federal tax dollars for Medicaid coverage of illegal immigrants beyond permitted emergency services.
The CMS post detailed initial audits across multiple states, identifying over $1 billion in federal funds misused for non-emergency Medicaid coverage of illegal immigrants. It listed specific states, including California with $1,310,032,549, and noted that notifications led to refunds starting in some areas. The Trump Administration prioritizes eliminating such fraud to protect the program for American citizens.
The California Legislative Analyst’s Office reported that Medi-Cal spending continues to grow rapidly due to eligibility expansions and increased enrollment, with total program costs projected to exceed $180 billion over the budget window. The report cited that a large share of Medi-Cal funding comes from federal matching dollars, making the state highly exposed to federal audits and payment reviews. It noted that deviations from federal eligibility or claiming rules could place California at risk for disallowed or recovered federal Medicaid funds.
Nationally, federal estimates indicate that Medicaid spending on non-citizens, including emergency services, exceeds $10 billion annually across all states. Government data shows that improper payments in entitlement programs like Medicaid total billions each year, with immigration-related issues contributing to waste. The CMS action supports broader efforts to enforce federal laws limiting such expenditures. The Government Accountability Office reported that.
CMS administers federal health programs, including Medicaid, serving over 70 million Americans with a budget exceeding $1 trillion. The agency oversees state compliance with federal guidelines to ensure funds support eligible citizens and legal residents. Under the Trump Administration, CMS focuses on reducing fraud and enforcing immigration-related spending restrictions.
