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The primary source of funding for Medicaid comes from federal government funds. Medicaid is a joint federal and state program, designed to provide healthcare coverage to eligible low-income individuals and families. The federal government matches state spending on Medicaid up to a specified rate, which means that a substantial portion of the funding is provided by federal resources.

While state taxes do contribute to Medicaid funding at the state level, the federal government provides significant financial support, which is critical to the program's existence and operation. This federal contribution ensures that states can offer comprehensive healthcare services to those who are qualified under the Medicaid program, creating a more equitable health care landscape across the nation. Thus, this option correctly identifies the primary funding source for Medicaid as federal government funds.