BUSTED! Karoline Leavitt Exposes Democrats’ SHOCKING ‘Secret Medicaid Laundering Scam’ LIVE, Cites Federal Audit
White House Press Secretary Unleashes Bombshell Data on Billions Diverted to Undocumented Immigrants, Igniting National Controversy
In a fiery White House press briefing that quickly went viral, Press Secretary Karoline Leavitt unleashed a barrage of data and accusations, claiming to expose what she termed a “secret Medicaid laundering scam” orchestrated by Democrats, allegedly funneling billions of taxpayer dollars into healthcare for undocumented immigrants. Leavitt’s dramatic presentation, citing federal audit findings and stark spending increases, effectively detonated a bomb under the prevailing healthcare narrative, sending shockwaves through political circles and sparking a furious debate across the nation.
“You’ve been told for years it wasn’t happening, that it was just right-wing conspiracy,” Leavitt declared, her voice sharp with conviction. “But today, it is official. The receipts are out, the numbers are real, and the cover-up just collapsed on live television.”
The Core Allegation: Billions Diverted
Leavitt’s central claim was that “billions—with a B—billions of your taxpayer dollars have been funneled into healthcare for illegal immigrants.” This assertion directly challenged years of Democratic assurances that federal funds were legally restricted from covering non-emergency healthcare for undocumented individuals.
She painted a stark picture of American citizens facing healthcare struggles—families waiting hours in emergency rooms, veterans being turned away, and seniors fighting for basic coverage—while, simultaneously, billions were allegedly rerouted. The implication was clear: this was not a policy debate, but “theft straight up from the very people who built this country.”
California: Ground Zero for the “Laundering Operation”
Leavitt pointed specifically to California as “ground zero” for what she called the “Medicaid laundering operation.” She detailed a sophisticated scheme allegedly employed by state officials:
Taxing Managed Care Organizations (MCOs): For years, California reportedly taxed managed care organizations (essentially, private insurance providers administering Medicaid).
Drawing Federal Matching Funds:
This state tax money was then used to draw in massive federal matching funds, sometimes as high as “77 cents on the dollar.” These matching funds are typically meant for poor or disabled American citizens.
Rerouting Funds to Non-Citizens: Instead, Leavitt alleged, California “rerouted that cash into healthcare coverage for over 1.6 million illegal immigrants,” effectively turning the program into a “taxpayer-funded back door.”
She estimated this maneuver pulled in
$6.4 billion in the previous year alone, labeling it “money laundering disguised as compassion” and “theft in broad daylight carried out with federal silence and Democratic applause.”
The Smoking Gun: Federal Audit Confirms “Improper Claims”
The most significant piece of Leavitt’s presentation was her reliance on a federal audit to substantiate her claims. She stated that an audit led by the Centers for Medicare and Medicaid Services (CMS) found that California had “improperly claimed $52.7 million in federal funds for individuals who were never even eligible for Medicaid to begin with.”Leavitt emphasized that these were not “clerical errors” but “deliberate policy choices that exploited a loophole.” The audit reportedly documented how state agencies “coded undocumented residents as emergency eligible or temporarily covered, allowing the funds to slip through federal review.” This, she argued, was the concrete “proof that broke the talking point that it doesn’t happen.”
Skyrocketing Spending Under Biden: The Data Drop
Beyond the California specific audit, Leavitt presented broader national spending figures that she argued demonstrated a dramatic increase in emergency Medicaid spending for undocumented immigrants under the Biden administration:
142% Increase in One Year: She claimed emergency Medicaid spending for undocumented immigrants “skyrocketed 142% in a single year,” jumping from $3.8 billion in 2023 to $9.1 billion in 2024.
196% Increase Since Trump: When compared to President Trump’s final full fiscal year in 2020, the total had “nearly tripled,” representing a 196% increase.
Leavitt contended that these figures proved billions of taxpayer dollars were being “diverted away from veterans, seniors, and low-income Americans who actually qualify for assistance.” She clarified that these weren’t “theoretical benefits” but “real reimbursements paid out to hospitals for non-citizens who enter the ER, receive treatment, and they just walk out with no bill.”
The Trump Contrast: Enforcement vs. Loopholes
Leavitt sharply contrasted the Biden administration’s policies with those of the Trump presidency. She asserted that under President Trump, “none of this chaos existed” because his administration “shut down the loopholes” and “enforced the verification.” She cited the “now famous one big beautiful bill,” which allegedly made it “crystal clear” that federal dollars could only fund U.S. citizens, lawful residents, or those with verified legal status.
According to Leavitt, when Trump’s Department of Health and Human Services (HHS) identified “the Medicaid manipulation game and scandal, they went ahead and pulled the plug,” leading to emergency care spending for undocumented immigrants “flatlining.”
Conversely, she argued that Biden’s presidency, characterized by “open borders, loosened verification, and… progressive governors green lit to run wild,” allowed this spending to nearly triple within just four years.
Real-World Impact: Overwhelmed Hospitals and Taxpayer Burden
Leavitt emphasized that the impact of this alleged “scam” was “not theoretical” but “visible in emergency rooms across the country.” She provided anecdotal and statistical evidence:
Southern California Hospitals: Reportedly “bombarded by non-citizen patients.”
Denver, Colorado: 8,000 undocumented migrants made “20,000 visits to the city’s healthcare system in just one year,” leaving “over $10 million in unpaid bills.”
UC Health Leadership: Allegedly admitted that “across the board access for everyone, including insured American citizens, has been severely impeded,” leading to “longer wait times, overcrowded ERs, doctors forced to prioritize by immigration status instead of medical emergency.”“Taxpayers are footing every penny while their own children wait longer for care that they are paying for,” Leavitt passionately stated, concluding, “Every dollar diverted to fund illegal care is a dollar stolen from an American family.”
Media Reaction and the “Gaslight” Accusation
Leavitt explicitly accused the mainstream media of complicity, claiming they “buried” the federal audit report “as fast as they could.” Following her press briefing, she noted a rapid, coordinated response from media outlets and “fact-checkers,” whom she accused of employing a “legal technicality masquerading as truth.”
She highlighted that media reports often stated federal funds “cannot be used for illegal immigrants,” rather than acknowledging whether they are being used in practice. This distinction, she argued, was a deliberate attempt to “gaslight” the American people and serve as an “organized cover-up.”
The 2020 Primary Debate Clip: “They Promised It”
Further solidifying her narrative, Leavitt revealed that a clip had resurfaced from a 2020 Democratic primary debate, in which “one by one, every Democrat on the stage raised their hands when asked if illegal immigrants should receive government-funded healthcare.” This included
Joe Biden, Kamala Harris, and Pete Buttigieg.
Leavitt argued that this clip, which had been “buried for years,” now circled widely after her briefing, creating a powerful “side-by-side” comparison. “The media’s ‘oh it can’t happen’ defense fell apart because their own candidates promised that it would happen on live television,” she declared, concluding, “this wasn’t an accident. It was their plan from the very beginning. A coordinated political choice to prioritize non-citizens while pretending to protect taxpayers.”
Political Stakes: Government Shutdown and 2024 Election
Leavitt framed the ongoing government shutdown as directly linked to this alleged “Medicaid fraud.” She claimed that “behind closed doors, Democrats are demanding that Congress repeal the Trump-era protections” that prevent the fraud, wanting “those loopholes reopened” and “verifications removed” to “restore the funding pipeline.” She directly accused Senate Majority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries of “fighting tooth and nail to keep this shutdown going” not to defend healthcare, but to “defend the scam.”
President Trump, she added, called it a “hostage situation,” arguing Democrats “would rather keep the lights off in Washington than to admit that they got caught laundering billions through Medicaid.”
Leavitt warned that if Democrats succeed in reversing Trump-era restrictions, “the spending floodgates reopen overnight,” potentially leading to “tens of billions of dollars” being “stripped” from Washington. Hospitals would be “swamped,” rural clinics would close, and “taxpayers will never see where their money actually goes.”
She concluded with a direct appeal to the American public, urging them to demand justice, call their representatives, share the numbers, and “flood the comment sections” to ensure “the cover-ups, they don’t work anymore.” Leavitt claimed that President Trump had already ordered new audits and strengthened enforcement through a “one big beautiful bill 2.0,” a follow-up package designed to “clamp down on every Medicaid loophole.”
Leavitt’s confrontational briefing has undoubtedly intensified the national debate over immigration, healthcare spending, and government accountability, setting a contentious tone for the upcoming political battles.