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Illinois lawmakers brace for possible federal cuts to Medicaid

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Illinois lawmakers brace for possible federal cuts to Medicaid


SPRINGFIELD — Health care advocates, hospital officials and people who rely on Medicaid for their medical coverage warned state lawmakers Wednesday of consequences that could result from proposed cuts in federal Medicaid funding.

The video in the player above is from a previous report.

“This is it. This is absolutely it. This is the line,” said Carrie Chapman, senior director of litigation and advocacy at Legal Council for Health Justice, a Chicago-based advocacy group. “Medicaid stays or goes as the program that we’ve know it right now.”

Chapman was among nearly a dozen people who spoke Wednesday to an Illinois House budget committee that oversees spending for human services, including Medicaid, the public health insurance program that covers about 3.4 million lower-income people in Illinois.

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Established in 1965 alongside Medicare, the federally funded health insurance program for seniors, Medicaid has traditionally targeted lower-income pregnant women, children, seniors, parents, and people with disabilities. In Illinois, the federal government pays approximately 51% of the cost of covering those individuals’ care.

However, with passage of the Affordable Care Act in 2010, Medicaid eligibility was expanded to include working-age adults with incomes up to 138% of the federal poverty level. Approximately 770,000 people in that category are covered by Illinois Medicaid and the federal government pays 90% of the cost for that expansion group.

Currently, according to the Illinois Department of Healthcare and Family Services, Medicaid pays for about half of all child births in Illinois and two-thirds of all nursing home days. Nearly 50% of Illinoisians living with HIV are covered by Medicaid, as well as almost 80% of people served by community mental health centers.

All told, according to the state comptroller’s office, Illinois spent about $36.9 billion on Medicaid in the fiscal year that ended June 30. Illinois Department of Healthcare and Family Services Director Lizzie Whitehorn said about 62% of total state Medicaid spending comes from the federal government.

At issue was a budget resolution that recently passed the Republican-controlled U.S. House in Washington, which calls for deep cuts in federal spending. Part of that resolution calls on the U.S. House Committee on Energy and Commerce, which has jurisdiction over Medicaid, to cut $880 billion from the federal budget deficit over the next 10 years.

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Because Medicaid makes up a large part of all the programs the Energy and Commerce Committee oversees, many have assumed that cuts of that size would have to include substantial cuts to Medicaid.

“There’s no way they can cut that much out of the federal budget without touching Medicaid, because Medicaid is such a substantial portion of the discretionary funds that they have access to,” Rep. Anna Moeller, D-Elgin, who chairs the legislative appropriations committee, said after the hearing.

Whitehorn noted that the expansion of Medicaid under the Affordable Care Act resulted in cutting the state’s uninsured rate in half and reducing the amount of uncompensated care delivered in Illinois by more than a third.

“Federal cuts would mean we have to limit services or eligibility,” she told the committee. “And we don’t have the money as a state to make up the difference.”

A.J. Wilhelmi, president and CEO of the Illinois Health and Hospital Association, described the list of proposals being considered in Washington as “both sweeping and shocking.” He said they include turning federal Medicaid spending into a block grant to states, establishing per capita caps on Medicaid benefits, and eliminating certain funding mechanisms, known as provider taxes, that are used to draw down additional federal matching funds to support the cost of operating hospitals.

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“And make no mistake, there would be no hospital Medicaid program without hospital provider taxes,” he said.

Last month, Gov. JB Pritzker laid out a $55.2 billion budget proposal to the Democratic-controlled General Assembly to fund state government operations over the 2026 fiscal year, which begins July 1. In his budget address, however, he noted the uncertainty of various streams of federal funds that are used to help pay the cost of many state operations, including Medicaid.

Rep. Bob Morgan, D-Deerfield, who serves on the committee, said Wednesday that the decision about future federal Medicaid funding is in the hands of the Republican-controlled Congress. He urged GOP members of the General Assembly to use their influence to persuade the three Illinois Republicans in the U.S. House to vote against cutting Medicaid funding.

“So I’ll just close with my request to the minority spokesmen and the minority members of this committee to come back in a week to share with this entire committee those letters and those emails and those texts in discussion with us about the things they have done to make sure that the U.S. House of Representatives and the U.S. Senate and the president do not make these horrible, horrible, damaging, life-impacting cuts to our Medicaid system,” he said.

Republicans on the panel argued that the subject of federal budget negotiations was beyond the scope of the state legislative committee’s purview and suggested Wednesday’s hearing was more about partisan politics than solving the state’s budget issues.

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“And so this, I think, is performative,” said Rep. William Hauter, R-Morton. “We don’t know what will happen. There’s a lot of things that we have no control over, budget negotiations going on at the national level.”

Moeller argued the hearing was more than a stage show, noting that Congress faces a March 14 deadline to pass a bill to renew federal spending authority or face a partial shutdown of the federal government.

“This hearing this morning is far more than performative,” she said. “We are going to be heading into our budget cycle, our budget making process, with huge uncertainty hanging over our heads. What happens on March 15, in the next few weeks, in Washington, D.C., will have a direct impact on the level of funding that we will have available for all of these important programs.”

Capitol News Illinois is a nonprofit, nonpartisan news service that distributes state government coverage to hundreds of news outlets statewide. It is funded primarily by the Illinois Press Foundation and the Robert R. McCormick Foundation.



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Capitol News Illinois | Judge delays decision on special prosecutor for ‘Operation Midway Blitz’

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Capitol News Illinois | Judge delays decision on special prosecutor for ‘Operation Midway Blitz’


CHICAGO — The legal battle over how federal immigration agents can be investigated and charged by local prosecutors — namely Cook County State’s Attorney Eileen O’Neill Burke — won’t be resolved for a little while longer as a Cook County judge on Monday pushed off her scheduled ruling on whether to appoint a special prosecutor to oversee such cases.

As she began Monday morning’s hearing, Cook County Judge Erica Reddick noted that since she heard arguments over the special prosecutor petition last month, there had been a few related developments.

“Spoiler alert: There will not be a ruling today,” Reddick said.

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First, a state panel appointed by Gov. J.B. Pritzker published a final report April 30 memorializing dozens of clashes between federal agents and both undocumented immigrants and U.S. citizens during the Trump administration’s Chicago-focused “Operation Midway Blitz” mass deportation campaign this past fall.

That same day, the Illinois State Police opened an investigation into the fatal shooting of Silverio Villegas González by an immigration officer in September. When the investigation is complete, the ISP plans to turn it over it to the state’s attorney’s office, which a Burke spokesperson confirmed will “play a supportive role in their investigation.”

Lawyers for the coalition of more than 400 petitioners, including elected officials and community leaders, behind the push for a special prosecutor want the dual developments to be included in the records the judge is weighing.

However, the judge lightly admonished Locke Bowman, one of the attorneys for the coalition, after he told her he couldn’t promise that he wouldn’t want the record supplemented again.

Reddick said she wasn’t precluding that possibility, “but please understand: This must come to an end.”

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After a Friday deadline for Bowman and his colleagues’ latest legal filing, the judge will rule on May 21.

This week marks two months since the coalition filed its petition for a special prosecutor, ramping up an already contentious public pressure campaign for Burke’s office to investigate and charge federal immigration agents.

The state’s attorney has maintained her office has limited legal authority to do so without a request from law enforcement, which she has not yet received. She’s also repeatedly pointed to federal agents’ relative immunity from state prosecution under the U.S. Constitution’s supremacy clause and Illinois Supreme Court precedent as reasons to tread carefully so as not to risk any future case falling apart on appeal.

But in February, as the pressure to prosecute grew louder, Burke’s office put together guidelines for handling any future investigations of federal agents. The protocol, which was written with guidance from Illinois Attorney General Kwame Raoul, stipulates the state’s attorney’s Law Enforcement Review Unit can help investigate once a law enforcement agency “believes that there is sufficient evidence to support felony charging and is seeking felony review.”

‘It’s not a hypothetical’

On Monday, Reddick quizzed Assistant State’s Attorney Yvette Loizon on why the protocol only mentioned the possible investigation of use of force, and not nonviolent crimes like conspiracy and perjury. Both of those hypothetical charges were specifically named in the March 12 petition for a special prosecutor, though the judge objected to Loizon’s use of the word “hypothetical” in answering her question about whether the state’s attorney’s office would limit the scope of its investigations.

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“It’s not a hypothetical,” Reddick said, interrupting Loizon, adding that if a law enforcement agency’s investigation finds facts supporting conspiracy or perjury charges, the state’s attorney’s office would then be faced with the question of whether to take it up.

After a tense back-and-forth, Loizon assured the judge that the state’s attorney’s office would dedicate resources to pursue such allegations if they turn up, though she said it would be unlikely they’d be alleged in a vacuum without also being connected to use of force charges.

In a statement after the hearing, a spokesperson for Burke’s office reiterated that the state’s attorney “has repeatedly condemned the tactics used by the Trump administration and during Operation Midway Blitz.” Critics of the state’s attorney have accused her of being slow to action so as not to risk relationships within the Trump administration and funding for key priorities like gun violence, which they say is tantamount to the kind of conflict of interest that should trigger a special prosecutor appointment.

But Burke maintains that her concern is not seeing cases overturned on appeal, thus undermining efforts to investigate and prosecute federal agents’ alleged abuses.

“As we have argued in court, the CCSAO (Cook County State’s Attorney’s Office) must follow the law and the facts to protect the integrity of our prosecutions and ensure that any resulting conviction will stand,” Burke spokesperson Elyssa Cherney said, referencing a 2017 Illinois Supreme Court ruling limiting local prosecutors’ ability to open investigations without law enforcement. “The petition seeking a special prosecutor is frivolous, contains baseless allegations and gross misrepresentations of the law.”

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State Rep. Norma Hernandez, D-Melrose Park, however, said Monday that it looks very different from the outside, especially in immigrant-heavy communities like those she represents in the near-west suburbs of Chicago.

“Our community should not have to organize this hard simply for our voices to be heard,” she told reporters outside Reddick’s courtroom.

“The negligence and inaction of Cook County State Attorney Eileen Burke has only deepened that pain. When prosecutors refuse to act or investigate with urgency, they send a dangerous message to families: That justice depends on who you are and what community you come from.”





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PPP Loan Scandal Busts Joliet Woman Working For Illinois Department Of Corrections: AG Kwame Raoul Reveals

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PPP Loan Scandal Busts Joliet Woman Working For Illinois Department Of Corrections: AG Kwame Raoul Reveals


JOLIET, IL —Attorney General Kwame Raoul issued a press release on Monday is alleging a Will County woman fraudulently received a Paycheck Protection Program (PPP) loan for more than $20,000 while employed by the Illinois Department of Corrections.

The Attorney General’s office charged Jamilah Franklin, 48, of Joliet, with one count of loan fraud of more than $10,000, a Class 2 felony punishable by up to seven years in prison; and three counts of forgery, Class 3 felonies punishable by up to five years in prison. Sentences are ultimately determined by the court. Franklin’s first court appearance is June 18.

“Federal assistance programs served as a lifeline for small businesses and unemployed Americans during the COVID-19 pandemic, and it is unacceptable that government employees would abuse that vital support,” Raoul said. “I will continue to collaborate with other agencies to hold public workers accountable for abusing these programs.”

Attorney General Raoul’s office alleges Franklin was employed by the DOC as a lieutenant when she fraudulently applied for a PPP loan from the U.S. Small Business Administration by falsely claiming she owned a business. According to Raoul’s office, Franklin received $20,516 in 2021 as a result.

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The Attorney General’s office is prosecuting this case based on a referral by the Office of Executive Inspector General and following an investigation by the Illinois State Police Division of Internal Investigation.

“The Illinois State Police pursues any state employee committing criminal behavior and will continue to work with Attorney General Raoul’s office to hold employees accountable and ensure justice,” said ISP Director Brendan F. Kelly.

Raoul’s office has prosecuted dozens of individuals for PPP loan fraud and referred other investigations to the appropriate state’s attorneys for further evaluation.

Deputy Chief Jonas Harger is prosecuting the case for Raoul’s Public Integrity Bureau.





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The Weekly: Illinois detention centers, Canvas breach and AI policies

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The Weekly: Illinois detention centers, Canvas breach and AI policies


The Daily Northwestern · The Weekly: Illinois detention centers, Canvas breach and AI policies   WALLIS ROGIN: Last week, The Daily reported on Illinois legislation defining where “detention center facilities” can be located, Northwestern professors’ policies on artificial intelligence and a Canvas hack that targeted over 9,000 schools. From The Daily Northwestern, I’m Wallis Rogin….



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