I keep waiting to hear questions like this on TV. The whole reason they want to give block grants to the states is that their long term strategy is to weaken the financial stability of blue states. When people who need Medicaid realize that their red state will mercilessly withhold that care from them, they will soon realize that they need to move to a blue state to get health care. Of course when all the sick people move to blue states, and an inordinate amount of their budgets must go towards paying for these health care costs.
Meanwhile the red states that realize the savings from their sick people moving out of the state can instead use those funds for such things as supporting tax abatements in order to encourage businesses to move to their state. Their economies are strengthened while blue state economies are weakened.
They can also use the savings to support certain ideological preferences that they have as well. For example additional funding for home schooling and private/religious education that will teach their children Republican values instead of, say, art or languages.
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