AOC Denies Medicaid for Illegal Aliens Exists as Dems Sue to Cover It Up

Twenty Democrat-led states have filed a lawsuit against the Department of Homeland Security (DHS), seeking to prevent the agency from reviewing whether Medicaid funds have been used to cover individuals living in the country illegally.

The legal challenge, led by California Attorney General Rob Bonta, targets a new initiative by federal health officials who, beginning in June, started sharing Medicaid data with DHS as part of a broader review.

According to a report from NPR, the lawsuit alleges that the Department of Health and Human Services (HHS) directed the Centers for Medicare & Medicaid Services (CMS) to provide DHS with sensitive information about Medicaid enrollees in multiple states, including California, Illinois, Washington, and Washington, D.C.

Trump’s Sovereign Wealth Fund: What Could It Mean For Your Money?

“The Trump Administration has upended longstanding privacy protections with its decision to illegally share sensitive, personal health data with ICE,” Bonta said in a statement announcing the lawsuit.

“In doing so, it has created a culture of fear that will lead to fewer people seeking vital emergency medical care.”

The lawsuit argues that the data sharing arrangement violates confidentiality provisions and undermines trust in the healthcare system.

States involved in the legal action claim that Medicaid recipients’ private information — including names, addresses, Social Security numbers, immigration status, and healthcare details — is being improperly shared with immigration authorities.

This Could Be the Most Important Video Gun Owners Watch All Year

The initiative, however, has drawn attention from Republicans, who have questioned whether taxpayer-funded Medicaid is being used to cover non-citizens, including illegal aliens.

The issue has become a focal point in debates over President Donald Trump’s “One Big Beautiful Bill,” which includes provisions aimed at tightening Medicaid eligibility requirements and eliminating access to benefits for individuals in the country illegally.

Senator Eric Schmitt stated that the legislation would remove roughly 1.4 million illegal immigrants from Medicaid rolls.

The effort has been framed by supporters as a move to preserve taxpayer-funded programs for legal residents and citizens, and to curb abuse of public resources.

Florida Rep. Anna Paulina Luna highlighted the contradiction between Democratic claims and state-level policy.

Luna responded to comments by New York Rep. Alexandria Ocasio-Cortez, who had posted on X: “Not one federal dollar currently goes to giving undocumented people Medicaid and you know that. What DOES need to be said is that Republicans are set to kick 17 million Americans off their health insurance.”

Not one federal dollar currently goes to giving undocumented people Medicaid and you know that.

What DOES need to be said is that Republicans are set to kick 17 million Americans off their health insurance.

Even GOP Senators admitted this. And Floridians are going to suffer. https://t.co/YTVJKpTnxa

— Alexandria Ocasio-Cortez (@AOC) July 1, 2025

Luna pushed back by pointing to public data and state policies that permit Medicaid-like benefits for certain low-income immigrants, including those without legal status, in states such as California and Illinois.

Your claim that “not one federal dollar” goes to undocumented immigrants overlooks emergency Medicaid, which uses federal funds for acute care— hundreds of millions annually. States like CA also use state funds (often tied to federal block grants) for non-emergency care, a… https://t.co/CUNjUAqaQU

— Rep. Anna Paulina Luna (@RepLuna) July 1, 2025

Even NPR acknowledged in its coverage that some states allow immigrants who do not qualify for Medicaid to access publicly funded health programs.

These programs are state-funded, but the data surrounding these enrollees is shared with CMS and now, under the new initiative, with DHS.

The Big Beautiful Bill ends that arrangement by restricting Medicaid eligibility.

According to the official data from the CBO (see below), that kicks a whopping 1.4 million illegal immigrants off the Medicaid rolls. pic.twitter.com/zTeutcnpIz

— Senator Eric Schmitt (@SenEricSchmitt) July 1, 2025

The lawsuit’s plaintiffs argue that the data-sharing effort could discourage immigrants from seeking care.

Meanwhile, federal officials have defended the data exchange as necessary to ensure compliance with eligibility rules and to verify the proper use of federal healthcare dollars.

As legal proceedings unfold, DHS has not indicated whether it will pause its inquiry into Medicaid misuse.

The Trump administration has continued to signal support for further oversight into how federal health funds are distributed across states.

The case is expected to raise broader questions about privacy, federal oversight, and the balance between public health access and immigration enforcement.

No timeline has been provided for when the courts may issue a ruling on the matter.