RFK Jr. Freezes Medicaid Funds To California And Minnesota Over Suspected Fraud

Health and Human Services Secretary Robert F. Kennedy Jr. announced Monday that the Trump administration is suspending more than $1 billion in Medicaid payments to California and Minnesota while federal officials investigate what they describe as widespread fraud and questionable billing practices. The move marks the latest step in the administration’s nationwide crackdown on waste, fraud and abuse in government healthcare programs.

The Centers for Medicare and Medicaid Services is withholding approximately $867 million from California and another $199 million from Minnesota until both states can verify the legitimacy of thousands of claims flagged by federal investigators. Officials said the payments will remain frozen until the states provide documentation proving the claims are valid.

Kennedy blamed years of lax oversight in Democrat-led states, saying California and Minnesota “opened the floodgates to theft” by failing to properly monitor Medicaid spending. He said the administration is determined to protect taxpayers and ensure healthcare dollars are not diverted through fraud or abuse.

CMS Administrator Dr. Mehmet Oz said investigators identified multiple warning signs, including unusually rapid growth in California’s in-home care spending, payments connected to deceased recipients, and claims involving individuals whose eligibility raised concerns. Officials said advanced data analytics and artificial intelligence helped identify the suspicious billing patterns.

California Gov. Gavin Newsom and Minnesota Gov. Tim Walz criticized the funding freeze, arguing the administration is using Medicaid as a political weapon. Federal officials rejected those claims, saying the action is based solely on protecting taxpayer dollars and ensuring states comply with federal program integrity requirements.

Kennedy said the administration will continue expanding its anti-fraud initiative nationwide and warned that any state failing to safeguard Medicaid funds could face similar action. He added that legitimate payments will be released once the questioned claims are properly documented and verified.