WASHINGTON, D.C. – In a stunning revelation that has ignited fresh fury over government spending, Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz announced Thursday that an internal review has uncovered more than $1 billion in fraudulent or improper Medicaid payments to illegal immigrants across several states. The finding, detailed in a Fox News interview, exposes what Oz called a “moral outrage” of taxpayer dollars funneled to non-citizens through loopholes exploited by blue states, amid the federal shutdown’s escalating costs.
Oz, Trump’s pick to lead CMS, described the audit—covering just half a dozen states—as uncovering “astronomical” waste in a program already plagued by $100 billion in annual improper payments, per a 2023 Government Accountability Office report. “You can’t just dole that out to able-bodied illegal immigrants in states because they think it’s the right thing to do,” Oz fumed on “Fox & Friends,” accusing Democrats of “gaslighting” Americans on the issue. The payments, often for emergency services required by federal law but expanded illicitly, violate statutes barring full Medicaid eligibility for undocumented individuals, with states like California and Illinois under scrutiny for $200 billion in potential overages over a decade.
The disclosure arrives at a combustible moment: The shutdown, now in Day 23, has furloughed 800,000 workers, including 18,000 in Minnesota per Gov. Tim Walz, while Trump’s One Big Beautiful Bill slashes $1 trillion from Medicaid overall. Republicans, led by House Speaker Mike Johnson, tie it to Schumer’s 51-46 Senate blockade, demanding clawbacks before funding resumes. “Dems prioritize illegals over troops,” Jordan blasted, referencing a $130 million private donation safeguarding military pay.
Democrats push back. Pelosi decried it as “fearmongering,” insisting emergency care is a humanitarian mandate, not fraud, and noting non-citizens use 54% less welfare than natives per CBO data. Yet with polls at 61% favoring cuts, the audit bolsters Trump’s 515,000 deportations and $41 billion tariff-driven deficit trim. For Oz, it’s a clarion call: “We’re committed to recovering every dime.” As a “red tsunami” brews for 2026, this $1 billion scandal isn’t ledger line—it’s launchpad for reform.
