Please Follow us on Gab, Minds, Telegram, Rumble, Gettr, Truth Social, Twitter, YouTube, Instagram

The U.S. Department of Health and Human Services (HHS) and the Centers for Medicare & Medicaid Services (CMS) announced that it has deferred more than $1 billion in federal taxpayer Medicaid funds to both California and Minnesota until those states file additional documents supporting high-risk Medicaid claims.

The move continues the Trump administration’s crackdown on fraud, waste, and abuse in programs, such as Medicaid and Medicare, that are funded by federal taxpayer dollars.

“CMS is pausing more than a billion dollars in federal Medicaid payments to California and to Minnesota because of suspected fraud and noncompliance,” HHS Secretary Robert F. Kennedy, Jr. said during a press conference Tuesday morning. “That includes more than $867 million dollars for California and over 200 million dollars for Minnesota.”

“If those states want that money, they need to provide documentation that these payments are legitimate,” Kennedy asserted, explaining further that President Donald Trump wants to protect federal programs such as Medicaid and Medicare by eliminating the fraud, waste, and abuse “that jeopardizes those programs and the Americans who rely on them.”

Kennedy said the Biden administration “nearly broke” the trust of the American people when they “looked the other way while fraud, waste, and abuse exploded.”

“They incentivized fraud, waste, and abuse in all 50 states,” the secretary added. “They held no one accountable. They violated the social contract that makes this country strong and that makes our democracy function.”

Under Kennedy’s authority, both CMS and the HHS Office of Inspector General will also now exclude “bad actors” who undermine federal healthcare programs.

Kennedy appeared with CMS Administrator Dr. Mehmet Oz, who said his agency “is done trying to chase down stolen and misused funds after they’ve already left the building.”

“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,” Oz said in a statement. “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.”

According to HHS, CMS is demanding further documentation from California after it reviewed claims for in-home care programs that showed spending increases significantly beyond national trends.

In Minnesota, CMS also reviewed claims in 14 high-risk service areas, finding a need for further documentation of expenditures associated with providers flagged for integrity issues as well as concerns related to eligibility and billing for services.

In June, the Department of Justice announced results of the 2026 National Health Care Fraud Takedown resulted in charges against 455 defendants – including 90 doctors and other healthcare professionals – who allegedly participated in health care fraud and opioid abuse plots that involved more than $6.5 billion in false claims and harms to patients – including those that resulted in death.

‘NO AD’ subscription for CDM!  Sign up here and support real investigative journalism and help save the republic!'