Trump Administration Freezes Over $1 Billion in Medicaid Funds to California, Minnesota Over Fraud

The Trump administration has paused more than $1 billion in Medicaid payments to California and Minnesota after audits uncovered systemic fraud, billing irregularities, and compliance failures at the state level—the latest escalation in the White House’s war on government waste. HHS Secretary Robert Kennedy Jr. threatened that states won’t get more funding until they prove the payments were legitimate. Fox News: “If Governor Gavin Newsom or Governor Tim Walz wants this funding released, all they have to do is provide basic documentation showing that these services are legitimate and not fraudulent. And that’s common sense,” Kennedy said Tuesday during a press conference on the announcement. The Centers for Medicare & Medicaid Services (CMS) is withholding roughly $867 million from California and more than $200 million