White House Memo: Repeal Could Trigger Nearly $192B in Healthcare Spending for Noncitizens, White House Says
A White House memo obtained by Fox News warns that acceding to Democrats’ demand to repeal the health-care title of the Working Families Tax Cut Act as a condition to keep the government open could increase federal spending on noncitizen health care by about $192 billion over the next decade by undoing six provisions that limit Medicaid/Medicare access and enhanced FMAP for emergency care. Republicans also allege California is using a provider‑tax mechanism to draw federal matching funds to pay for care for undocumented immigrants — a claim the Newsom office and some experts dispute — and the fight over these provisions is unfolding alongside a separate dispute over renewing enhanced ACA premium tax credits before the looming Sept. 30 funding deadline.
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📌 Key Facts
- A White House memo obtained by Fox projects just over $192 billion in additional federal healthcare spending for undocumented immigrants over the next decade if Democrats' repeal demands are met.
- The memo ties that projected cost specifically to repealing the healthcare title of President Trump's "big, beautiful bill," also called the Working Families Tax Cut Act.
- The memo lists six provisions that would be undone — including ending Medicaid funding limits for most non‑citizens, ending enhanced federal medical assistance percentage (FMAP) for emergency care for undocumented immigrants, ending Medicare funding for most non‑citizens, and closing a so‑called "California loophole" — and states Democrats demand repeal "as a condition of keeping the government open for four weeks."
- GOP lawmakers and commentators allege California uses a Medicaid "provider tax" mechanism to draw federal matching dollars that are then pooled to pay for non‑emergency healthcare for undocumented immigrants; proponents of that view include Steve Hilton and Michael Cannon (Cato).
- The California provider‑tax allegation has been rebutted by critics including Jennifer Tolbert of the Kaiser Family Foundation (saying it is unrelated to provider‑tax uniformity waiver language) and by California Governor Newsom's office, which told the L.A. Times the claim is false.
- The dispute is tied to an imminent federal funding lapse around the Sept. 30 appropriations deadline, with Democrats reportedly seeking the repeal as part of a stopgap to keep the government open.
- Related context reported by CBS: one issue in the larger fight is whether Congress will renew "enhanced" ACA premium tax credits that lower marketplace premiums; CBS cited Kaiser Family Foundation's Cynthia Cox explaining the potential ripple effects on coverage and premiums.
📚 Contextual Background
- Formal recruiting figures for all U.S. military services are typically announced after the federal fiscal year ends on September 30.
📰 Sources (3)
California using backdoor to get federal funds for illegal immigrant healthcare, GOP says, Dems say nonsense
New information:
- Specific GOP claim that California is using a Medicaid 'provider tax' mechanism to draw federal matching dollars that are then pooled to pay for non‑emergency healthcare for undocumented immigrants.
- Quotes and sourcing: Steve Hilton (making the California allegation on the record), Michael Cannon (CATO) arguing provider taxes enable the draws, and Jennifer Tolbert (KFF) rebutting the claim as unrelated to provider‑tax uniformity waiver language.
- Newsom office denial to the L.A. Times: 'This is false — CA does not do this.'
White House memo says Democrats' plan could spend $200B on healthcare for illegal immigrants
New information:
- A White House memo obtained by Fox News Digital projects just over $192 billion in federal spending on healthcare for illegal immigrants over the next decade if Democrats' repeal demands are met.
- The memo explicitly ties the projected cost to repealing the healthcare title of President Trump's "big, beautiful bill," also called the Working Families Tax Cut Act.
- The memo lists six specific provisions that would be undone — including ending Medicaid funding limits for most non‑citizens, ending enhanced FMAP for emergency care for illegal immigrants, ending Medicare funding for most non‑citizens, and closing a so‑called 'California loophole' — and includes the phrase that Democrats demand repeal 'as a condition of keeping the government open for four weeks.'
Breaking down fight over health care tax credits as shutdown looms
New information:
- Issue: Whether Congress will renew 'enhanced' ACA premium tax credits that lower marketplace premiums
- Timing: The dispute is tied to an imminent federal funding lapse — described as happening 'next week' around the Sept. 30 appropriations deadline
- Source: CBS News interview/segment featuring Cynthia Cox of the Kaiser Family Foundation explaining potential ripple effects