Taxpayer

Capitol Hill erupted into viral political fireworks this week during a Senate Appropriations subcommittee hearing on Department of Justice funding. What was supposed to be a standard review of federal law enforcement budgets quickly transformed into a fierce interrogation over government oversight, systemic state fraud, and allegations that federal Medicaid dollars are being used to fund “exorcisms” and spiritual rituals in California. At The Modern Memo, we analyze the sharp confrontation between Senator John Kennedy (R-LA) and Deputy Attorney General Todd Blanche, the controversial expansion of California’s Medi-Cal system, and why critics argue that progressive health initiatives are operating as a massive taxpayer slush fund. The Senate Clash: ‘What the Hell Are We Doing About It?’ The fiery exchange began when Senator Kennedy shifted the panel’s focus away from standard appropriations to target the staggering scale of financial waste and unchecked theft within state-level Medicaid programs, specifically pointing to America’s most populous state. The Interrogation: Brandishing a list of unorthodox state health claims, Kennedy pressed Blanche on reports that California’s Medicaid program, known as Medi-Cal, has processed reimbursements for faith-based healings, spiritual cleansings, and rituals he characterized as exorcisms. The Slush Fund Accusation: “We have people in California using federal taxpayer dollars to pay for exorcisms,” Kennedy railed, his voice rising. “This isn’t health care. It’s a slush fund. Billions of taxpayer dollars have been stolen over the years under the guise of medical treatment, and what the hell are we doing about it?” The DOJ Defense: Blanche pushed back, defending the Justice Department’s response by pointing to the recent creation of a specialized financial fraud division explicitly tasked with prosecuting the abuse of federal funding. However, he conceded that under current guidelines, certain non-traditional programs are technically permitted under rules expanded by individual states. The Context: Medi-Cal’s 2024 Tribal Expansion While the Senate testimony grabbed headlines for its dramatic rhetoric, the root of the controversy stems from a historic policy change implemented by Governor Gavin Newsom’s administration in late 2024. The CMS Approval: In October 2024, the federal Centers for Medicare & Medicaid Services (CMS) approved a first-of-its-kind request from California, alongside Arizona, New Mexico, and Oregon, to expand Medicaid coverage to include “Traditional Healer and Natural Helper Services.” The Covered Rituals: Designed in partnership with tribal health advocates, the program allows Indian Health Care Providers to request taxpayer reimbursement for culturally based substance use disorder (SUD) treatments. Covered interventions include music therapy (drumming and traditional songs), natural helpers for trauma support, and spiritual interventions encompassing native ceremonies, rituals, and herbal remedies. The Bureaucratic Loophole: While state health officials designed the policy to honor ancient traditions and combat the devastating opioid crisis within Native communities, critics argue the loosely defined categories of “spiritual interventions” and “rituals” have opened a massive loophole prone to bureaucratic exploitation and fraudulent billing. The Accountability Crisis The confrontation on Capitol Hill reflects a deepening nationwide exhaustion with the perceived lack of oversight governing progressive state spending. Outright Theft: During his testimony, Blanche acknowledged that while some alternative therapies are structurally authorized, federal investigators have uncovered instances of outright theft where bad actors use alternative medicine codes to mask fraudulent billing. The Oversight Battle: GOP lawmakers are leveraging the hearing to demand stricter federal auditing guidelines for CMS approvals. They argue that universal taxpayer funds should not be dispatched to bankroll spiritual practices that lack standard, peer-reviewed clinical benchmarks. Final Word The Senate showdown over California’s medical billing is the definitive proof that Washington’s patience with progressive spending experiments has officially expired. When you look past the theatrical noise of “exorcism” headlines and focus on the data—the billions of dollars lost to Medicaid fraud and the unprecedented expansion of taxpayer-funded spiritual rituals—you gain a clearer picture of a system suffering from a severe deficit of accountability. Quality information replaces the narrative of “health equity” with the reality of an open-ended billing apparatus that invites financial abuse. It allows you to see that while California health officials frame these policies as cultural preservation, the American taxpayers funding them are asking a much simpler question: what the hell are we doing about it?