California uses a loophole to inflate provider payments, draw down more federal funds, then diverts the money, including $4 billion, to pay for illegal aliens on Medicaid.
Rep. Burlison explains the shell game:
“Now California figured this out, that they can force the federal government to spend $9 for every $1 that it spends, and they’re using it to launder money.
“This is the way they do it, and it costs no money to California because they raise taxes on managed care companies, the companies that are providing Medicaid.
“So they go to these companies and say, we’re going to tax you, but don’t worry, we’re going to give you all of the money that we just taxed you right back.
“But in the meantime, we’re going to take that money and we’re going to pull down federal dollars, and that’ll let us have more money so that we can spend it on expanding the population for Medicaid and spend it on illegal immigrants.
“In fact, this scheme has allowed California to spend nearly $4 billion to put illegal immigrants… on Medicaid.
“Four billion dollars. This is crazy, and this total scheme is spending more money in federal dollars in California, than we send in federal dollars than the entire state of Florida spends in one year, in their entire annual budget.
“So this is absurd. This has to be corrected. California is stealing federal dollars, and they’re rubbing our noses in it by paying for illegal immigrants and encouraging them to come over here.”
In the full clip, he goes into depth on the spending crisis in the United States that our Senate politicians are not yet helping us resolve. He gives the worst case scenario on cuts to taxes, and you might disagree. I didn’t listen to the entire clip yet, but the first eight minutes ignores funds Trump hopes to gain from trade, business deals, and tariffs as well as cuts in regulations. All must be in place for the tax cuts to work.
This is from the first eight minutes:
“Where we are today at 2024 we’re spending 140% more on social security than we did pre-COVID. We’re spending 235% more today on the interest on the national debt than we did pre-COVID. We’re spending 141% more today than we did on Medicare, and we’re spending 151% on Medicaid than we did before, and 126% in defense.
“And as you can see, as the years go on to the next 10 years, it’s only going to get worse. So, welfare spending, this is specifically the welfare programs have exploded over the last since the pandemic, since COVID, and we’ve never returned to pre COVID policies or expenditures.
“So what is what is being proposed? All of that doesn’t even take into consideration that we have in front of us a proposal to extend the Trump tax cuts, which I’m all for, to cut taxes on tips, to cut taxes on Social Security, to cut taxes on overtime pay. These are all great ideas that I would support, but this would only make things worse.
“The numbers are just to extend the tax cuts, the Trump tax cuts somewhere between $4 trillion and $4.8 trillion over the next 10 years. That’s the cost of SALT …our New York friends and California friends that like their SALT tax, they want that deduction raised the cap.
“If they’re able to get that, it’s anywhere between $200 billion cost and 1.2 trillion over the next 10 years. And so as you can see, if we cut taxes on tips, it’s between 100 billion, 500 billion, no tax on overtime pay, between 250 billion and 3 trillion Social Security.
“The cost will be between half a trillion dollars and $1.5 trillion.
“…This is the cost, because when you cut taxes at the end of the day, you are going to get some economic growth, and we’ll talk about that, but they don’t pay for themselves.
”So here’s the problem. Where we are right now, we’re at 100% of our debt to GDP. I’ve talked about this. [The highest] since World War II. If we implement all of the tax cuts on the high side, we’re looking at growing over the next 10 years to being 150% of our debt to GDP. This is game over. This is where this level means you have to restart as a national currency. It means your retirement funds will default. We will be in a debt, spiral that we will not be able to get out of.”
The math doesn’t lie — but Washington does.
The spending cuts aren’t just necessary — they’re overdue.
Thank you @EPICforAmerica @Paragon_Inst @BudgetHawks for the infographics
Watch my full breakdown here: pic.twitter.com/KIQNuXh0Kr
— Rep. Eric Burlison (@RepEricBurlison) May 16, 2025
1. The budget shell game
Washington is spending $6.8 trillion this year.$4.1T is locked in “mandatory” spending
$960B goes to non-defense discretionary
Interest and defense make up the rest
They make it sound like cuts are impossible. They’re not. pic.twitter.com/441dAjL9Ge
— Rep. Eric Burlison (@RepEricBurlison) May 16, 2025
3. The biggest driver? Medicaid — and Democrats are lying about it.
They say it’s “for the poor.”
But enrollment has doubled the number of people in poverty — and costs are blowing past every projection. pic.twitter.com/D9bqarXggF
— Rep. Eric Burlison (@RepEricBurlison) May 16, 2025
5. California’s Medicaid shell game
CA uses a loophole to inflate provider payments, draw down more federal funds, then diverts the money – including ~$4 billion for illegal aliens on Medicaid. pic.twitter.com/knJRpyIVqt
— Rep. Eric Burlison (@RepEricBurlison) May 16, 2025
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