Trump Officials Withhold $1 Billion in Medicaid Funds From 2 States

The Trump administration announced Tuesday it was withholding more than $1 billion in Medicaid funds from California and Minnesota, the second time it has targeted the two states with Democrat governors for suspected fraud in their public health insurance programs.

The federal government will hold more than $867 million in payments from California and over $200 million from Minnesota until they can provide proof that certain claims were legitimate, officials said.

Federal officials described finding claims for care provided to Medicaid enrollees who were deceased as well as providers billing for an unusually high number of patients, a possible sign of fraudulent activity. They said the problems in California and Minnesota were especially acute.

“If Gov. Gavin Newsom or Gov. Tim Walz wants this funding released, all they have to do is provide basic documentation showing that these services are legitimate and not fraudulent,” Robert F. Kennedy, the heath and human services secretary, said at a news conference. “That’s common sense.”

The Trump administration was already withholding $243 million from Minnesota since February and $1.3 billion from California since May. Dan Brillman, who oversees Medicaid for the Trump administration, said the government had not released any of that money.

“We hope to return funds as soon as they submit and figure out all the documentation,” he said at the news conference.