The setting sun illuminates the U.S. Capitol building in Washington, D.C., U.S., December 2, 2025. REUTERS/Evelyn Hockstein
(Washington, DC) – Claims circulating online allege the Trump administration has uncovered evidence that federal money was used to pay for healthcare for illegal immigrants, prompting scrutiny of Democratic-led states. The figures, attributed by critics to data from the Centers for Medicare & Medicaid Services (CMS) – claim California received more than $1.3 billion, New York about $30.7 million, and Illinois roughly $29.7 million in federal reimbursements connected to care for undocumented immigrants.
Federal law, however, generally bars undocumented immigrants from full Medicaid coverage. The only exception is Emergency Medicaid, which reimburses hospitals for life-saving care such as emergency surgery or childbirth, not routine checkups or dental visits. Experts say large dollar figures often reflect emergency care reimbursements accumulated over multiple years, not proof of broad taxpayer-funded healthcare access.
CMS has said it is stepping up oversight to ensure states are not improperly claiming federal funds for services that fall outside the law. In cases where violations are proven through audits, the agency can seek repayment – but no public CMS audit has yet confirmed the specific state-by-state amounts circulating online or issued blanket repayment orders.
Several states, including California and New York, do provide healthcare coverage to undocumented immigrants, but largely using state funds, not federal Medicaid dollars. That distinction is often blurred in viral claims suggesting Democrats secretly used federal money to cover routine care.
