Trump administration halts $1 billion in Medicaid payments to California and Minnesota citing fraud

Published Jul 21, 06:25 PM UTC

The Trump administration, led by HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Dr. Mehmet Oz, announced a pause on $1 billion in Medicare and Medicaid payments to California and Minnesota, accusing the states of widespread fraud and noncompliance. However, no new evidence of fraud was presented during the press conference. This action follows a pattern of the administration targeting Democratic-run states, including a previous $1.3 billion block on California Medicaid reimbursements in May and threats to withhold disaster aid and federal grants. The article notes that states have successfully appealed such cuts in court before, and Minnesota and California are expected to sue, arguing the White House is acting for vindictive political reasons.