How can it be legal for the Federal Government to pay for the State Medicaid costs of one state (or two or three) and not pay for the same liabilities in all of the other states? In a sane world, this would not be allowed.
It isn't. However, the entire federal structure has become corrupted by power (including Judicial) that they will likely allow it by refusing to get involved, calling it a "political" issue.
-PJ
“How can it be legal for the Federal Government to pay for the State Medicaid costs of one state (or two or three) and not pay for the same liabilities in all of the other states?”
Agreed. Excellent question.