SerpApi.Org
The Trump administration is pausing more than $1 billion in Medicaid payments to California and Minnesota over alleged fraud concerns, officials announced Tuesday.
Tuesday marked the second time Trump targeted the two states’ Democratic governors — California Gov. Gavin Newsom and Minnesota Gov. Tim Walz — for alleged Medicaid fraud in their states, and continues a trend of freezing funding to blue states to crack down on alleged fraud.
Health Secretary Robert F. Kennedy Jr. said the administration is deferring more than $867 million in funding to California and $199 million to Minnesota.
Officials described red flags being raised over claims for providing care to deceased people, as well as allegedly billing for large numbers of patients at the same time.
Financial audits identified claims in California tied to high-risk services, like personal care and home-based services that exceeded national trends. In Minnesota, officials said the investigation involves 14 high-risk services that needed additional documentation.
The Centers for Medicare and Medicaid Services (CMS) said it reviewed California’s claims for certain in-home care programs and other claims that officials said require more documentation.
“CMS is done trying to chase down stolen and misused funds after they’ve already left the building,” CMS Administrator Mehmet Oz said in a statement.
The Trump administration was already withholding $1.3 billion in Medicaid funding from California since May, and nearly $260 million from Minnesota.
A series of high-profile scandals in Minnesota caught the eye of Trump officials, who used them as justification for launching a massive immigration crackdown in the state.
“CMS touts their new fraud-detection capabilities, yet has not provided data or explanation on how the deferral amount was calculated or what it was based on,” said Minnesota’s temporary commissioner and state Medicaid director John Connolly.
“Today’s actions show that the federal government is acting again in unprecedented and punitive ways as part of their war on Medicaid and its recipients. Partnership – not politics – is required to stop criminals and protect services for the people who need them.”
For both states, the administration said the funding is not being cut, but merely paused until state officials can provide more information to show that the “high-risk” Medicaid claims are justified.
“If Governor Gavin Newsom or Governor Walz wants this funding released, all they had to do is provide basic documentation showing that these services are legitimate and not fraudulent,” Kennedy said during a press conference. “That’s common sense.”
Updated at 3:53 p.m. EDT
Copyright 2026 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.For the latest news, weather, sports, and streaming video, head to The Hill.
