{"id":1119,"date":"2026-07-22T08:37:44","date_gmt":"2026-07-22T08:37:44","guid":{"rendered":"https:\/\/urbaneconomynews.com\/?p=1119"},"modified":"2026-07-22T08:37:44","modified_gmt":"2026-07-22T08:37:44","slug":"trump-admin-freezes-more-than-1-billion-in-medicaid-funds-over-fraud-concerns","status":"publish","type":"post","link":"https:\/\/urbaneconomynews.com\/?p=1119","title":{"rendered":"Trump Admin Freezes More Than $1 Billion in Medicaid Funds Over Fraud Concerns"},"content":{"rendered":"
\n

The Trump administration moved Tuesday to withhold more than $1 billion in federal Medicaid dollars from California and Minnesota, the latest step in the campaign to root out fraud and waste in blue-state health programs.<\/p>\n

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The Centers for Medicare and Medicaid Services (CMS) said it is deferring roughly $867.5 million in payments to California and $199 million to Minnesota after financial reviews turned up claims the agency could not verify, particularly in in-home care programs.<\/p>\n

The decision extends a pattern of federal scrutiny aimed squarely at Democrat-led states that critics say have long been lax about policing how taxpayer money moves through their Medicaid systems. Minnesota in particular has already drawn federal attention this year, after the administration pointed to the state\u2019s failure to control fraud as one justification for last year\u2019s ICE enforcement surge there.<\/p>\n

CMS said its review of California\u2019s claims was triggered after officials noticed spending growth in certain in-home care programs that outpaced national trends, along with a broader set of claims the agency said simply lacked adequate documentation. In Minnesota, CMS flagged claims across 14 service areas, including payments tied to providers previously identified through the state\u2019s own program integrity reviews, a detail that raises questions about why those payments continued at all.<\/p>\n

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\u201cCMS is done trying to chase down stolen and misused funds after they\u2019ve already left the building,\u201d CMS Administrator Mehmet Oz said, framing the freeze as a matter of protecting federal taxpayer dollars rather than punishing the states.<\/p>\n

The Department of Health and Human Services said it will also expand its authority to permanently remove bad actors from federal health programs, a move officials describe as closing a loophole that has allowed fraudulent providers to resurface after being caught.<\/p>\n

Tuesday\u2019s action builds on a much larger deferral announced in May, when CMS withheld $1.3 billion in Medicaid funds from California alone. Oz called the withholding the largest deferral in the agency\u2019s history at the time. Officials have also imposed a six-month moratorium on enrolling new hospice and home health providers into Medicare nationwide, citing those sectors as persistent hotspots for fraudulent billing.<\/p>\n

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The Trump administration moved Tuesday to withhold more than $1 billion in federal Medicaid dollars from California and Minnesota, the latest step in the\u2026<\/p>\n","protected":false},"author":1,"featured_media":758,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1119","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nTrump Admin Freezes More Than $1 Billion in Medicaid Funds Over Fraud Concerns - Urban Economy news<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/urbaneconomynews.com\/?p=1119\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump Admin Freezes More Than $1 Billion in Medicaid Funds Over Fraud Concerns - 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