Trump Administration Pauses Over $1 Billion in Medicaid Payments to California and Minnesota

The Trump administration has paused more than $1 billion in Medicaid payments to California and Minnesota as part of a fraud crackdown, according to Health and Human Services Secretary Robert F. Kennedy Jr. The pause follows reviews by the Centers for Medicare and Medicaid Services (CMS) that identified claims needing further examination before federal matching funds can be distributed. California will see a hold on $867.5 million due to claims related to in-home care programs showing spending growth above national trends. Minnesota's funding of $199 million is being paused after claims in 14 high-risk service areas were flagged for additional documentation. HHS clarified that the funding is not being cut, as officials can still provide the necessary information to validate the claims. Kennedy stated, "Medicaid exists to serve vulnerable Americans — not to bankroll unsupported claims," emphasizing the administration's commitment to accountability in public programs. CMS Administrator Dr. Mehmet Oz noted that the payment deferrals are part of a new approach to program integrity. Earlier this year, the Trump administration established an anti-fraud task force targeting potential abuses in federal programs, with recent arrests related to a healthcare fraud probe in Minnesota. A CBS News analysis indicated that over 700 hospices in Los Angeles County raised multiple fraud red flags. The U.S. attorney in Minnesota estimated that fraud in the state could exceed $1 billion.