The Trump administration has paused more than $1 billion in federal Medicaid payments to California and Minnesota while it investigates potential fraud and compliance issues, according to the U.S. Department of Health and Human Services (HHS).
HHS Secretary Robert F. Kennedy Jr. said the funds will remain frozen until both states provide documentation demonstrating that the Medicaid payments were legitimate.
“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 during a news conference on Tuesday.
The administration said the review is part of a broader effort to strengthen oversight of federal healthcare spending and ensure taxpayer funds are used appropriately.
California Governor Gavin Newsom and Minnesota Governor Tim Walz had not immediately responded publicly to the announcement at the time of the administration’s statement.
