Trump admin. halts $1 billion in Medicaid payments to California, Minnesota

The Trump administration has halted more than $1 billion in Medicaid payments to California and Minnesota, citing a crackdown on fraud in federal programs. Health and Human Services Secretary Robert F. Kennedy Jr. announced the pause on Tuesday, stating that the Centers for Medicare and Medicaid Services (CMS) identified claims needing further review before federal funds could be distributed.

California will have $867.5 million withheld after an examination of in-home care program claims revealed spending growth that outpaced national trends. Minnesota faces a $199 million deferral following a review of 14 high-risk service areas requiring additional documentation. Officials from both states emphasized that the funding is not being cut and can be released if they provide sufficient information to prove the claims meet federal standards.

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Medicaid exists to serve vulnerable Americans, not to bankroll unsupported claims. Under President Trump's leadership, we are restoring accountability across our public programs and protecting taxpayer dollars.

"Medicaid exists to serve vulnerable Americans, not to bankroll unsupported claims," Kennedy said in a statement. "Under President Trump's leadership, we are restoring accountability across our public programs and protecting taxpayer dollars." CMS Administrator Dr. Mehmet Oz added that the payment deferrals are part of a "new approach to program integrity," asserting that "CMS is done trying to chase down stolen and misused funds after they've already left the building."

The administration's focus on combating fraud includes an anti-fraud task force launched earlier this year. The Justice Department recently announced eight arrests in connection with a healthcare and hospice fraud probe that allegedly defrauded the healthcare system of over $50 million. A CBS News analysis in March found that over 700 of approximately 1,800 hospices in Los Angeles County showed multiple red flags for fraud. The U.S. attorney in Minnesota has estimated the total amount of fraud in the state could exceed $1 billion.

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CMS is done trying to chase down stolen and misused funds after they've already left the building.