Trump Administration Pauses Medicaid Payments
The Trump administration has temporarily suspended more than $1 billion in Medicaid payments to California and Minnesota.
U.S. Health Secretary Robert F. Kennedy Jr. said the decision was linked to suspected fraud and possible noncompliance with federal requirements.
States Asked to Verify Payments
Kennedy said California and Minnesota must provide documentation showing that the payments are legitimate before the funding can be released.
He made the announcement during a press conference with Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz.
White House Expands Fraud Crackdown
The payment freeze is part of a broader campaign by the Trump administration to investigate alleged fraud involving federal funds.
Vice President JD Vance, Kennedy and Oz have taken leading roles in the initiative, which the White House has described as an aggressive effort to combat fraud.
Many of the recent payment suspensions have affected states led by Democratic administrations.
California and Minnesota Programs Under Review
Kennedy said officials are examining spending linked to in-home healthcare services in California.
In Minnesota, the administration is reviewing 14 areas that the state’s legislative auditor previously identified as having a high risk of fraud.
However, Kennedy and Oz did not present specific evidence supporting the fraud allegations during the press conference.
Federal Agencies Gain Wider Enforcement Powers
Kennedy also announced an expansion of federal exclusion powers.
The change gives both the Centers for Medicare and Medicaid Services and the Department of Health and Human Services Office of Inspector General greater authority to remove individuals or organizations accused of wrongdoing from federal healthcare programs.
In serious cases, those considered “bad actors” could be permanently barred from participating in programs such as Medicaid and Medicare.
