The Center for a Free Economy Urges Congress to Investigate California’s Abuse of Federal Medicaid Intergovernmental Transfers from the Centers for Medicare and Medicaid Services

WASHINGTON, March 4, 2025 –The Center for a Free Economy today sent a letter to Representatives Brett Guthrie, Chairman of House Energy and Commerce Committee, Buddy Carter, Chairman of Subcommittee on Health, and Jen Kiggans, Chairwoman Subcommittee on Oversight and Investigations, urging Congress to investigate California’s abuse of federal reimbursement from the Centers for Medicare and Medicaid Services (CMS).

California fire departments falsely inflate the costs of Emergency Medical Services (EMS), resulting in a larger reimbursement from the federal government, and then uses those extra funds for budget items unrelated to health care. In fact, California Governor Gavin Newsom is on the hunt for yet more tax dollars from CMS, appearing before Congress at the last hour of the Biden administration’s rule to secure billions more in Medicaid dollars for things like rent for homeless people. This fleecing of American taxpayers across the nation is unfair, unlawful and must cease immediately.

“California’s far-left, radical fiscal policies have gone too far. The overspending and overpromising of Governor Newsom and other liberal California politicians have implicated the rest of the country in paying for and cleaning up their mess. When an investigation discovers an abuse of federal tax dollars, they must be required to return that money to the American people,” said Ryan Ellis, President of the Center for a Free Economy. “I trust that this new Republican trifecta federal government will stand firm to deliver on their campaign promises to fight for the American people. In this case, that means ensuring states like California aren’t siphoning taxpayer money in states from Pennsylvania to Oklahoma to Oregon to fix their own fiscal mismanagement.”

I strongly urge Congress to investigate California’s abuse of CMS’ intergovernmental transfer reimbursements so California liberals cannot continue to rob CMS and the American taxpayer. The American people, displayed by 2024’s election results, have had enough of Democratic politicians’ political and fiscal irresponsibility, and Congress must answer this plea with an investigation.

Read the full letter here.

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