HHS Secretary Robert F. Kennedy, Jr., CMS Administrator Dr. Mehmet Oz. (Photo: HHS.gov)
HHS Sec Kennedy Announces Trump Admin is Pausing over $1 billion in Medicaid Payments to California and Minnesota Over Suspected Fraud
CMS is deferring approximately $867.5 million in federal Medicaid payments to California
By Katy Grimes, July 21, 2026 9:21 am
U.S. Health and Human Services Secretary Robert F. Kennedy Jr. just announced Tuesday morning that the U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services have deferred more than $1 billion in federal Medicaid payments to California and Minnesota as the states submit additional documentation supporting certain high-risk Medicaid claims. The action advances the Trump administration’s effort to combat fraud, waste, and abuse in Medicaid and safeguard federal taxpayer dollars.
“Medicaid exists to serve vulnerable Americans — not to bankroll unsupported claims,” said HHS Secretary Robert F. Kennedy, Jr. “Under President Trump’s leadership, we are restoring accountability across our public programs and protecting taxpayer dollars. I appreciate CMS Administrator Dr. Oz’s leadership in strengthening Medicaid program integrity and ensuring federal funds are spent as Congress intended. States that receive federal Medicaid funding must demonstrate that every dollar meets federal requirements. When they cannot, we will not release federal funds until they do.”
CMS is deferring approximately $867.5 million in federal Medicaid payments to California and $199 million to Minnesota after focused financial reviews identified claims that require additional review before federal matching funds are released. These are payment deferrals (not permanent funding cuts) and both states will have the opportunity to provide documentation showing the claims meet federal Medicaid requirements.
.@SecKennedy announces the Trump Administration is pausing more than $1 billion in Medicaid payments to California and Minnesota due to suspected fraud and noncompliance.
"If those states want that money, they need to provide documentation that these payments are legitimate." pic.twitter.com/6VjDVZ0Ovu
— Rapid Response 47 (@RapidResponse47) July 21, 2026
Additionally, under Secretary Kennedy’s authority, HHS will be expanding its exclusion authority, enabling both CMS and the HHS Office of Inspector General to utilize this critical tool to remove bad actors from federal healthcare programs — and, in many cases, permanently bar them from returning.
“CMS is done trying to chase down stolen and misused funds after they’ve already left the building,” said CMS Administrator Dr. Mehmet Oz. “That’s why we’re deferring payments with respect to certain high-risk services within the Medicaid programs in California and Minnesota as part of our proactive new approach to program integrity. By stopping waste and fraud before the check clears, CMS is delivering record-high savings for taxpayers and ensuring that their hard-earned dollars reach the vulnerable Americans Medicaid is meant to serve.”
CMS reviewed California’s claims for certain in-home care programs after identifying spending growth that far exceeded national trends and other claims that require additional documentation. As a result, CMS is deferring approximately $867.5 million in federal Medicaid payments until the state provides the information needed to support those claims.
A California native and Navy mom, Katy lives in Sacramento, CA.
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California has proven to be a BAD STEWARD of Federal Funding.
Pause it and force the AG to go after the fraudsters including those who turn a blind eye to the waste and abuse.
Let the Democrat wails and howls begin. On cue
You are killing granny, taking food from babies mouths ……. etc, etc. etc. Oh, that’s right, That is what was happening already after decades of failed Democrat oversight and billions of “health care” dollars wasted on fraud, abuse and corruption .
Listen up California health care industrial complex, You buy bandaids for those who need them; not caviar for all the relatives who do not.. Clean up your act, Sacramento. You belong in the naughty corner .You destroyed what was intended to be good. This one is on you.
Does this also mean many SEIU and nurses union revenue streams will also be cut due to funding phony “health care” job positions? Or will the wails of the massive state “health care” unions drown out even asking that question. Make health care great again. Once we finally define what “health care” actually is .
BTW: evidence of health care insurance is NOT health care. Barry Soetoro got that one all wrong.