Trump Declares U.S. Can't Afford Medicaid, Medicare, or Child Care: 'We're Engaged in Wars'

Apr 02 2026

During a private Easter luncheon at the White House, President Trump asserted that the federal government cannot sustain funding for Medicare, Medicaid, and child care, emphasizing that these responsibilities should rest with individual states. “We’re fighting wars,” he stated, suggesting that military expenditures take priority over social programs.

Trump's comments came as he addressed attendees, where he also accused Democratic-led states of engaging in fraudulent activities related to these programs. He recounted a conversation with Office of Management and Budget Director Russell Vought, saying, “Don’t send any money for day care, because the United States can’t take care of day care.” He continued, “We have 50 states. We’re a big country. We can’t take care of day care.”

In a further elaboration, Trump indicated that states would need to increase taxes to cover child care costs, proposing that the federal government could slightly reduce its taxes to assist. “It’s not possible for us to take care of day care, Medicaid, Medicare, all these individual things,” he remarked. “We have to take care of one thing: military protection.”

The Easter event was closed to the press; however, the White House typically shares such remarks on its YouTube channel before removing them. A spokesperson later clarified that Trump was addressing the need to eliminate fraud in these programs and highlighted his administration's efforts to protect Social Security and Medicare.

Currently, the federal government allocates funds to states for subsidizing child care through various programs aimed at assisting low-income families. Democrats have long advocated for enhanced federal support for child care costs. Recently introduced legislation by Sen. Patty Murray and Rep. Katherine Clark aims to expand access to early education and limit child care expenses to 7% of household income.

In response to Trump's statements, some Democrats drew comparisons between child care costs and military expenditures, particularly referencing the recent U.S. military operation in Iran that reportedly cost over $11 billion in its initial days. “Trump says we can pay for war in Iran but can’t afford childcare,” Rep. Ro Khanna remarked on social media.

Critics have pointed out that for the cost of just a few weeks of military operations, comprehensive health coverage could be provided for seniors on Medicare. “It is possible. Trump just doesn’t care to do it,” Sen. Andy Kim added.

For months, members of the Trump administration have alleged fraud among states receiving federal child care grants, often without substantial evidence. In January, the Department of Health and Human Services froze access to funds for five Democratic-led states amid these allegations.

Trump specifically targeted Minnesota after accusations surfaced regarding fraudulent child care centers. However, a state review later confirmed that the centers were operating normally. At the Easter luncheon, Trump reiterated his claims about fraud in states like Minnesota and Los Angeles, stating that they had more day care centers than children.

He also suggested that Republican-led states might be engaging in similar practices due to competition with Democratic states. “I can’t imagine they’re not doing it,” he said, implying that fraud is widespread across both political lines.

To combat these issues, Trump has appointed Vice President JD Vance as a key figure in an anti-fraud initiative. Vance recently held the inaugural meeting of a new task force dedicated to this mission and swore in Colin McDonald as assistant attorney general for national fraud enforcement.

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