Citing fraud, feds halt more than $1B in Medicaid money for California, Minnesota

By: Anna Claire Vollers

Outlets: Stateline

Published: July 21, 2026

Words: 853

Last Updated: 1 week, 6 days ago


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The Trump administration announced Tuesday that it is freezing more than $1 billion in Medicaid payments to California and Minnesota in an effort to crack down on fraud.

Medicaid is the public health insurance for people with low incomes, including some disabled and elderly people, jointly funded by state and federal dollars.

The U.S. Department of Health and Human Services and the Centers for Medicare & Medicaid Services deferred more than $867 million to …

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