{"id":2594481,"date":"2026-04-24T02:31:02","date_gmt":"2026-04-24T06:31:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-trumps-big-beautiful-bill-is-reversing-rampant-state-waste-and-fraud\/"},"modified":"2026-04-24T02:35:13","modified_gmt":"2026-04-24T06:35:13","slug":"how-trumps-big-beautiful-bill-is-reversing-rampant-state-waste-and-fraud","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-trumps-big-beautiful-bill-is-reversing-rampant-state-waste-and-fraud\/","title":{"rendered":"Trump&#8217;s Big, Beautiful Bill Is Reversing Rampant State Waste"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fhow-trumps-big-beautiful-bill-is-reversing-rampant-state-waste-and-fraud%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2594481&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The article argues that incentives drive public policy, and when the <a href=\"https:\/\/amzn.to\/3YuVZYV\" >federal government largely funds state programs<\/a>, states have little motive to crack down on fraud, waste, and abuse. It highlights testimony from kentucky Auditor Allison Ball showing extensive waste in Medicaid, such as $836 million paid to the same beneficiaries by multiple states, dead people still on Medicaid, duplicate Social Security numbers, ineligible noncitizens, a hacked data system, and infrequent inspections of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/neb-gov-ricketts-says-only-documented-workers-will-receive-vaccine\/\" title=\"Neb. Gov. Ricketts says only documented workers will receive vaccine\">long-term care facilities<\/a>. Despite these issues, it notes a positive result: Kentucky reduced its SNAP payment error rate from 9.1% to 3.5% in one year.<\/p>\n<p>The piece explains that last year\u2019s budget reconciliation bill realigns incentives to curb fraud, with several key measures. Starting in January, states must check the Social Security Death Master File for beneficiaries; provider death checks begin in 2028.Beginning in 2027,states must obtain beneficiary addresses,and by 2029 the federal government will implement monthly checks for duplicate enrollments,a provision the CBO says could save $17.4 billion over ten years. Other actions target noncitizen eligibility, and penalties for high SNAP error rates will apply to states with latter rates in the coming years. The article also notes prior fraud crackdown efforts by the Trump governance.<\/p>\n<p>the author argues that common-sense reforms and new incentives should push states to crack down on waste, fraud, and abuse more aggressively, reducing needless spending across <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/walsh-with-the-insane-equality-act-the-democrat-party-has-declared-total-war-on-reality\/\" title=\"WALSH: With The Insane \u2018Equality Act,\u2019 The Democrat Party Has Declared Total War On Reality\">federally funded programs<\/a>. The piece is authored by Chris Jacobs of the Juniper Research Group.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>A recurring theme of public policy &mdash; one leftists often ignore &mdash; is how people respond to incentives. If the federal government runs programs that give individuals <em>carte blanche<\/em> to steal, then some unscrupulous actors will exploit those weaknesses to do so.<\/p>\n<p>But those incentives go beyond individuals and also extend to the fight against waste, fraud, and abuse. In many cases, states have taken little action to crack down on fraud and waste within government programs because the federal government provides the bulk of the funding for said programs. If Washington gives states a blank check regardless of whether they crack down on fraud, why shouldn&rsquo;t those states embrace actions that bring their area more taxpayer dollars, even if those dollars come from illicit activity?<\/p>\n<p>Thankfully, provisions in last year&rsquo;s budget bill will realign many of those skewed incentives, which should help to change the tide over time. But a recent congressional hearing showed the scope of the problem our nation faces.<\/p>\n<h2><strong>Rampant Waste<\/strong><\/h2>\n<p>A recent subcommittee <a href=\"https:\/\/docs.house.gov\/Committee\/Calendar\/ByEvent.aspx?EventID=119156\" target=\"_blank\" rel=\"noreferrer noopener\">hearing<\/a> of the House Oversight Committee examined fraud in programs funded by the federal government but run by states. In that hearing, one state official&rsquo;s <a href=\"https:\/\/docs.house.gov\/meetings\/GO\/GO24\/20260415\/119156\/HHRG-119-GO24-Wstate-BallA-20260415.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">testimony<\/a> quantified the problem and the potential savings from more robust anti-fraud measures.<\/p>\n<p>Kentucky Auditor Allison Ball discussed not just some of the outright fraud but also the waste she found within the state&rsquo;s programs. For starters, one audit &ldquo;revealed that Kentucky paid $836 million to managed-care organizations for the same Medicaid beneficiaries whose coverage was also being paid for by another state.&rdquo; That&rsquo;s just under $1 billion in completely unnecessary spending in one state alone.<\/p>\n<p>But the problems in Kentucky didn&rsquo;t end there. Ball noted that another series of audits &ldquo;revealed a plethora of problems that show Kentucky is a target rich environment for waste, fraud, and abuse in the executive branch&rdquo;:&nbsp;<\/p>\n<blockquote>\n<p>&ndash; dead people remained on Kentucky Medicaid;&nbsp;<br \/>&ndash; multiple people used the same social security number to obtain Medicaid;&nbsp;<br \/>&ndash; ineligible noncitizens received Medicaid benefits;&nbsp;<br \/>&ndash; an executive branch data system housing Kentucky taxpayers&rsquo; personal info was hacked in five minutes during a security test; and&nbsp;<br \/>&ndash; Medicaid funded long-term care facilities in Kentucky were not being inspected every 15 months as required by law. Some had not received an inspection since 2019.<\/p>\n<\/blockquote>\n<p>On a positive note, Ball noted that &ldquo;in just one year, we&rsquo;ve been able to assist the Commonwealth in dropping its SNAP [Supplemental Nutrition Assistance Program, aka food stamps] payment error rate from 9.1% to 3.5%.&rdquo; But the rapid drop raises an obvious question: If Kentucky could reduce its error rate <em>by nearly two-thirds within a single year<\/em>, why on Earth didn&rsquo;t it do so far sooner?<\/p>\n<h2><strong>Help Is on the Way<\/strong><\/h2>\n<p>The answer to the obvious question is equally as obvious and infuriating. With Washington paying most of the tab, states had little incentive to crack down on fraud in federally funded programs, so many didn&rsquo;t. Fortunately for taxpayers, last year&rsquo;s <a href=\"https:\/\/wordpress.juniperresearchgroup.com\/wp-content\/uploads\/2025\/08\/BBB-Summary.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">budget reconciliation bill<\/a> changed these dynamics on multiple fronts, such that many of the problems outlined in Ball&rsquo;s testimony may finally start to come under control:<\/p>\n<p><strong>Dead Beneficiaries:<\/strong> Beginning in January, the law requires states to check the Social Security Death Master File quarterly to determine whether a beneficiary is deceased. Similar checks for providers start in January 2028.<\/p>\n<p><strong>Duplicate Enrollment:<\/strong> Beginning in January 2027, the law requires state Medicaid programs to obtain beneficiary addresses, and beginning in October 2029, it requires the Department of Health and Human Services to develop and implement a system for checking beneficiary names and addresses every month to prevent simultaneous, duplicate enrollments. The Congressional Budget Office <a href=\"https:\/\/www.cbo.gov\/publication\/61569\" target=\"_blank\" rel=\"noreferrer noopener\">concluded<\/a> that this provision alone would save $17.4 billion over 10 years.<\/p>\n<p>While this provision will not come fully into effect for about three more years, the Trump administration has already <a href=\"https:\/\/thefederalist.com\/2025\/07\/30\/administration-finds-millions-of-individuals-double-enrolled-in-taxpayer-funded-coverage\/\" target=\"_blank\" rel=\"noreferrer noopener\">taken action<\/a> to <a href=\"https:\/\/thefederalist.com\/2026\/04\/09\/the-real-reason-obamacare-enrollement-is-down-is-thanks-to-trumps-fraud-crackdown\/\" target=\"_blank\" rel=\"noreferrer noopener\">reduce duplicate enrollments<\/a> in Medicaid and the Exchanges, based in part on a Wall Street Journal <a href=\"https:\/\/www.wsj.com\/health\/healthcare\/medicaid-double-payments-insurers-states-1c091b41\" target=\"_blank\" rel=\"noreferrer noopener\">investigation last March<\/a> that found some people were enrolled in Medicaid in five-plus states at once.<\/p>\n<p><strong>Noncitizens:<\/strong> The law takes several actions in this area by 1) requiring Medicaid eligibility determinations every six months; 2) reducing the federal Medicaid match for emergency Medicaid assistance provided to &ldquo;an alien who is not lawfully admitted for permanent residence&rdquo;; and 3) limiting eligibility for Medicaid (along with Exchange subsidies and Medicare) to citizens, lawful permanent residents, Cuban and Haitian entrants, or members of the Compact of Free Association.&nbsp;<\/p>\n<p><strong>Error Rates:<\/strong> Beginning in October 2027, the law requires states with a SNAP error rate of 6 percent or more to contribute at least 5 percent of the cost of SNAP benefits in their state. States with an error rate of 10 percent or more will have to pay 15 percent of their state&rsquo;s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/on-unemployment-joe-manchin-hit-the-nail-on-the-head\/\" title=\"On Unemployment, Joe Manchin Hit The Nail On The Head\">food stamp benefits<\/a>.<\/p>\n<h2><strong>Dose of Common Sense<\/strong><\/h2>\n<p>With the federal government running <a href=\"https:\/\/thefederalist.com\/2026\/03\/12\/we-could-completely-get-rid-of-social-security-and-it-still-wouldnt-balance-the-u-s-budget\/\" target=\"_blank\" rel=\"noreferrer noopener\">massive deficits<\/a>, it seems slightly absurd that it took <a href=\"https:\/\/fiscaldata.treasury.gov\/datasets\/debt-to-the-penny\/debt-to-the-penny\" target=\"_blank\" rel=\"noreferrer noopener\">$39 trillion in debt<\/a> for Washington to figure out that paying for one individual to receive Medicaid coverage in multiple states wastes taxpayer money. But, at long last, common sense prevailed. Here&rsquo;s hoping these changed incentives will encourage states to get off the dime and take more aggressive actions to police the waste, fraud, and abuse they find within their midst.<\/p>\n<hr>\n<div>\n<p>      Chris Jacobs is founder and CEO of Juniper Research Group and author of the book &#8220;<a href=\"https:\/\/www.amazon.com\/dp\/1645720020\">The Case Against Single Payer<\/a>.&#8221; He is on Twitter: <a href=\"http:\/\/twitter.com\/chrisjacobsHC\">@chrisjacobsHC<\/a>.<\/p>\n<\/div><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Policy incentives fuel fraud; reform reduces waste<\/p>\n","protected":false},"author":521,"featured_media":2594482,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/04\/Trump-Signing-One-Big.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[3895,78452,3634],"class_list":["post-2594481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-bill","tag-state-waste","tag-trump"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/04\/Trump-Signing-One-Big.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2594481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/521"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2594481"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2594481\/revisions"}],"predecessor-version":[{"id":2594485,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2594481\/revisions\/2594485"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2594482"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2594481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2594481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2594481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}