Karoline Leavitt Claims Massive Medicaid Abuse: “The Biggest Scam in American History”?

Karoline Leavitt, former White House press official and rising conservative figure, has sparked fresh controversy after calling out what she described as “the biggest scam in American history.” In a recent podcast appearance, Leavitt alleged that billions of taxpayer dollars are being funneled into a ballooning Medicaid system, largely to support undocumented immigrants—an issue she says has gone unchecked for years.

According to Leavitt and others echoing the claim, U.S. taxpayers shelled out approximately $9.1 billion in emergency Medicaid expenses for undocumented immigrants in fiscal year 2024. That figure reportedly reflects a sharp increase—up from around $5.4 billion in 2020—drawing concern from critics of current immigration and healthcare policies.

The bulk of the criticism centers on California, which is said to have provided state-funded healthcare to an estimated 1.6 million undocumented residents, including full-scope Medi-Cal benefits for adults regardless of immigration status. Critics argue that the system is not only financially unsustainable but ripe for abuse, with Leavitt labeling the practice “a coordinated scheme to exploit federal funding.”

“This is not compassion—it’s corruption,” Leavitt stated in the Turley Talks podcast. “The American people are being lied to. Our healthcare system is being drained, not by citizens in need, but by politicians prioritizing non-citizens over their own people. It is the biggest scam in American history.”

While the figures cited are partially supported by state reports and watchdog organizations, the accusation of a “scam” remains politically charged and unproven. So far, there is no evidence of criminal wrongdoing or fraud by state or federal agencies. Healthcare access for undocumented immigrants—particularly emergency care—is legally mandated under EMTALA, the Emergency Medical Treatment and Labor Act, which requires hospitals to treat all patients in emergency situations regardless of legal status.

Furthermore, states like California have explicitly passed laws allowing for expanded healthcare coverage for undocumented populations, framing it as a public health and humanitarian issue. Proponents argue that providing preventive care reduces long-term emergency costs and improves overall community health.

Still, Leavitt’s comments are gaining traction among conservative voters who are increasingly frustrated by what they perceive as open-border policies and government waste. With the 2024 election cycle intensifying and immigration remaining a top issue for Republican candidates, this narrative could play a pivotal role in shaping public opinion.

Fact-checkers have urged caution, however. While the rising Medicaid costs are real, calling it a “scam” implies deliberate deception or fraud—something that requires legal proof. “A policy you disagree with is not automatically a scam,” one analyst noted. “It’s important to distinguish between political rhetoric and evidence-based claims.”

As debate around immigration, healthcare, and fiscal responsibility continues, Karoline Leavitt’s bold assertion has reignited calls for stricter oversight of public programs—and drawn renewed attention to how states manage benefits for non-citizens. Whether this becomes a defining issue or simply a viral soundbite remains to be seen.