The Trump administration has identified more than $1 billion in taxpayer money that was improperly used to fund healthcare for illegal immigrants, according to Centers for Medicare and Medicaid Services (CMS) Director Dr. Mehmet Oz.
The revelation comes as the government shutdown enters its fourth week amid an ongoing standoff over federal spending priorities.
In an interview with Fox & Friends this week, Dr. Oz said investigators have reviewed records from only about half a dozen states so far and already discovered more than $1 billion in misspent Medicaid funds.
“The receipts don’t lie,” Dr. Oz said, adding that the administration is in the process of “clawing back” the funds that were misused.
🚨JUST NOW: Dr. Mehmet OZ reveals that they’ve FOUND over a $1,000,000,000 BILLION in Federal tax payer funds spent on Healthcare for illeagls!
“Democrats say money from federal government is NOT going to illegal migrants”
“We have identified more than a BILLION DOLLARS” pic.twitter.com/l3x5Can8p7
— The Patriot Oasis™ (@ThePatriotOasis) October 24, 2025
This Could Be the Most Important Video Gun Owners Watch All Year
The discovery adds to growing concerns about waste and fraud in federally funded healthcare programs.
The Department of Government Efficiency (DOGE), which has been auditing spending under the direction of the Trump administration, has found extensive evidence of improper payments linked to illegal immigrants’ use of Medicaid services.
Dr. Oz said the administration’s investigation is ongoing and that additional states are expected to come under review in the coming months.
Officials emphasized that only a small portion of the nationwide Medicaid system has been examined so far, suggesting that the total amount of misspent funds could ultimately be much higher.
The latest findings come as the federal government remains partially shut down following disagreements in Congress over budget priorities.
The Trump administration has accused Democrats of refusing to fund essential programs for American citizens while fighting to preserve healthcare benefits and social services that benefit individuals living in the country illegally.
Surprised this hasn’t had more play. Dr Mehmet Oz, who’s in charge of the Centers for Medicare and Medicaid Services, claims that his investigators have found that in the last few months, over a billion dollars in Medicaid have been found going to illegal immigrants. pic.twitter.com/irSybh8yJC
— Hector Drummond (@hector_drummond) October 22, 2025
Earlier this month, House Speaker Mike Johnson discussed the issue during an interview with ABC News host George Stephanopoulos.
Johnson said Democrats had made federal funding for illegal immigrants’ healthcare a key demand in ongoing budget negotiations.
“They’ve made it clear they want to keep the gravy train going,” Johnson said, describing the dispute as one of the main causes of the shutdown.
Senate Majority Leader Chuck Schumer and other Democratic leaders have criticized Republican spending proposals, calling them “uncompassionate.”
They have defended continued healthcare access for illegal immigrants under Medicaid expansion, arguing that the policy is consistent with federal healthcare law and humanitarian obligations.
However, the Trump administration and Republican lawmakers have pointed to reports of widespread fraud and abuse within Medicaid as evidence that reforms are necessary.
A 2024 report by RedState cited Oregon as an example, where the state is expected to distribute approximately $1.5 billion in healthcare benefits from 2025 through 2027, with 25 percent of that cost funded by federal taxpayers.
The CMS audit findings have intensified scrutiny of those programs, especially in states that have expanded eligibility requirements.
Officials said federal guidelines prohibit Medicaid funding for individuals who are not lawfully present in the United States, except in emergency situations.
Dr. Oz said the administration is committed to recovering misused funds and strengthening oversight to prevent future waste.
“We’re focused on accountability,” he said, noting that the administration is coordinating with state governments to ensure compliance with federal rules.
Despite the shutdown, White House officials said the Trump administration continues to prioritize efforts to lower drug costs and improve healthcare affordability for American families.
The administration recently announced a second agreement with a major pharmaceutical company to reduce prescription prices nationwide, part of its broader initiative to make medication more accessible to the public.
The CMS investigation remains ongoing, and additional findings are expected to be released in the coming weeks as more state audits are completed.
Read the full article here


