Trump administration deferred over $1 billion in Medicaid payments to California and Minnesota, citing fraud
On July 21, 2026, the Centers for Medicare and Medicaid Services announced it was deferring $867.5 million in Medicaid payments to California and $199 million to Minnesota pending a fraud review, with HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz citing suspicions of Medicaid fraud but providing no documented evidentiary basis for the specific withholdings. Both states are Democratic-led, and the action follows a pattern of the administration using federal funding as leverage against states with administrations politically opposed to the president.
