Fox News host Kennedy challenged Democratic strategist Jessica Tarlov during a segment of “The Five” on Friday, disputing her claim that Democrats were not using federal funds to cover healthcare for illegal immigrants.
The exchange came amid renewed debate over government spending priorities as Congress faced a partial shutdown that began early Wednesday.
Republicans have accused Democrats of including provisions in their proposed continuing resolution that would direct healthcare funding to illegal immigrants, while Democrats have denied the allegation.
“I’m sorry to say it, but both parties are to blame. We got here because the more money you get from taxpayers, the more control you have over the government. Government is too big,” Kennedy said.
“I think there are many things that might go away that honestly we won’t really miss.”
Kennedy pushed back on Tarlov’s assertion that Democrats were not allocating federal resources toward illegal immigrant healthcare, pointing to California as an example.
“It is a disingenuous argument to say that the Medi-Cal spending in the state of California is only state spending for illegal aliens,” Kennedy said.
“That is one of the states where Governor Newsom decided that it would be a great idea to just start writing checks to people who were here illegally. That is Medi-Cal. It was extended to illegal immigrants.”
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Kennedy added that federal involvement is clear because Medicaid provides funding to the state’s Medi-Cal program.
“So [Democrat Rep.] Mark Pocan, who is a representative from Wisconsin, said that’s not a federal issue. The federal government isn’t funding that. Actually, the federal government does, because Medi-Cal is funded by Medicaid,” she said.
Senate Majority Leader Chuck Schumer has denied that the Democratic spending proposal includes funding for illegal immigrant healthcare.
However, House Speaker Mike Johnson has cited legislative language to support the Republican claim, pointing viewers to “page 57 of Chuck Schumer’s bill” and “section 2141.”
As a condition for ending the Democrat shutdown, Democrats want hospitals paid MORE to treat illegal aliens than American citizens — including young pregnant women.
That’s not an exaggeration. It’s written in black and white — Page 57, Section 2141 of Chuck Schumer’s… pic.twitter.com/LzDET4wFQr
— Speaker Mike Johnson (@SpeakerJohnson) October 5, 2025
According to the Democrats’ continuing resolution, Section 2141—titled “REPEAL OF HEALTH SUBTITLE CHANGES”—seeks to undo language within Title VII, Section B of an earlier bill related to Medicare oversight and eligibility restrictions, including provisions addressing “Alien Medicaid eligibility” listed under Section 71109.
Kennedy emphasized that while state programs like Medi-Cal are administered locally, federal funding accounts for a substantial portion of the costs.
“Medicaid is funded half by the federal government and half by the state, unless you’re talking about the 90% of people who are at the intersection of the ACA [Affordable Care Act],” she said.
“That is a horrible system, which already had high premiums before the pandemic and got a goose so people wouldn’t die so they could afford their health care.”
Kennedy argued that the current levels of federal spending on healthcare programs are unsustainable.
“Now that the pandemic is over, you cannot maintain spending at those levels,” she said.
“And to do so was a heartless gambit in the first place. That was run by Democrats who made this big promise of socialized medicine. But the reality is, the more government you have, the more problems you have, especially in overly subsidized sectors like health care.”
Republican lawmakers have continued to highlight the issue of federal funds flowing to states that provide healthcare to illegal aliens.
Since June, the Trump administration has worked to identify individuals on Medicaid who are in the country illegally.
Deportation officers have been given access to data showing millions of Medicaid enrollees residing in sanctuary areas, including California, Washington, D.C., Illinois, and Washington state.
Officials have said that the goal is to ensure compliance with federal eligibility laws and prevent states from using federal money for noncitizens who do not qualify for Medicaid benefits.
The ongoing dispute over federal spending and immigration-related healthcare is expected to remain a key issue as negotiations continue in Congress over the scope of the next funding package.
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