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As you point out, states already tailor their Medicaid programs to meet local needs. That’s why Medicaid isn’t one program, it’s 51 state-based programs. The goal of cutting off federal matching funds is not to give Medicaid to the states (they already have it), it’s to choke off the program to force rollbacks of enrollment and coverage.
The Trump Administration person interviewed said the funding was not to be cut.
In what way does the program support the goal you cite?