Rep. Richard Hudson (R-NC) is sounding the alarm on what he describes as a massive Medicaid fraud scheme that is diverting taxpayer dollars to illegal immigrants. In an effort to stop this blatant misuse of public funds, Hudson has introduced the *Protect Medicaid Act*, a bill aimed at ending the practice of states using loopholes to funnel federal Medicaid dollars to individuals who are in the country illegally.

The controversy started in California, where the state expanded its Medicaid program, Medi-Cal, to cover illegal immigrants. This expansion, while politically popular with progressive politicians, has created a massive budget deficit, as those who are not paying taxes are reaping the benefits of the program. The situation has only worsened under the Biden administration, which has allowed for an increase in illegal immigration, further straining resources meant for American citizens.

A joint study by the Paragon Health Institute and the Economic Policy Innovation Center (EPIC) has shed light on the illegal practices taking place in California. These organizations uncovered that the state has resorted to “money laundering” tactics to circumvent federal laws that prohibit Medicaid funding for illegal immigrants.

Rep. Hudson has been outspoken on this issue, taking to social media to express his outrage. In a post on X, he stated, “States are abusing a loophole to funnel your tax dollars toward Medicaid benefits for illegals. It’s outrageous, and it’s far past time Congress passes my *Protect Medicaid Act* to stop it. No more rewarding those who break our laws on YOUR dime.”

Hudson’s concerns aren’t unfounded. According to the study, California has found a way to bypass federal restrictions by increasing capitation rates, which are then covered by federal taxpayers. The state uses the additional funds to cover the costs of Medicaid benefits for illegal immigrants, despite the federal prohibition on such coverage. This “money laundering” scheme allows California to provide free healthcare to illegal immigrants while sticking American taxpayers with the bill.

“California uses most of the $5.2 billion remaining from its money laundering scheme to pay the full cost of Medicaid coverage for illegal immigrants, resulting in health insurance plans wholly paid by the American taxpayer,” Paragon Health Institute explained. The group also pointed out that the Biden administration’s lax border policies have exacerbated the problem, leading to a sharp increase in illegal immigration and, consequently, Medicaid spending.

When California first expanded its Medicaid program to cover illegal immigrants, the state projected it would cost around $3 billion per year to cover 1.15 million people. However, the number of illegal immigrants in the state has soared, and costs have skyrocketed. The Migration Policy Institute estimates that 2.74 million illegal immigrants now reside in California, with the actual number likely being even higher. As a result, the state now expects to spend a staggering $9.5 billion on Medicaid for illegal immigrants in the 2024-2025 fiscal year—almost three times the original estimate.

Rep. Hudson’s *Protect Medicaid Act* aims to close the loopholes allowing this abuse of taxpayer funds. He argues that illegal immigrants should not be receiving benefits at the expense of hardworking Americans, particularly when it threatens to undermine the care available for vulnerable U.S. citizens like pregnant women, the elderly, and those with disabilities.

In a statement to Breitbart News, Hudson expanded on his position, emphasizing that this practice endangers care for America’s most vulnerable while incentivizing more illegal immigration. “States are abusing a loophole to funnel federal funds toward Medicaid benefits for those in our country illegally at the expense of hardworking taxpayers. They’re jeopardizing care for our most vulnerable Americans,” Hudson said.

As the debate over illegal immigration and Medicaid funding continues, Hudson’s *Protect Medicaid Act* stands as a clear effort to safeguard taxpayer dollars and ensure that U.S. citizens, not illegal immigrants, are the priority when it comes to government-provided healthcare. It’s time for Congress to take action and end this abuse once and for all.