Trump Administration Blocks States From Skimming Medicaid Payments for Unions

President Donald Trump (L) acknowledges the audience as Administrator of the Centers for Medicare and Medicaid Services Seema Verma (2nd L) looks on in the Eisenhower Executive Office Building in Washington on Jan. 18, 2018. Alex Wong/Getty Images

The Trump administration on May 2 finalized a Medicaid rule that will cut off states from skimming Medicaid payments for home caregivers and diverting them to labor unions.

While federal law requires Medicaid payments to be made directly to the service providers, several states began flouting the requirement in the 1990s, by diverting portions of the payments toward union dues.