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Presumably, the money for medicaid expansion is there somewhere; i.e. the taxes for it have already been paid. If a state declines to take those funds, where do they go?

Edit: Avi, if you'd like to post your response as an answer, I can accept it.

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    This isn't really how budgeting works; for the most part, taxes aren't earmarked for a specific purpose. It just goes into the federal budget.
    – Publius
    Aug 8 '15 at 3:03
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    This ignores the obvious point that if "the money" already existed, the national debt wouldn't continue to increase every year.
    – user1873
    Aug 9 '15 at 3:50

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