The Trump administration is withholding more than $1 billion in Medicaid payments to California and Minnesota. U.S. Health and Human Services Secretary Robert F. Kennedy Jr. announced the move on Tuesday, citing suspected fraud and noncompliance.
The total amount being paused includes $867.5 million in payments to California and $199 million to Minnesota. Secretary Kennedy stated that an audit of the federal health program indicated instances of fraud.
Kennedy said at a news conference that if the states want the money, they must provide documentation that the payments are legitimate. This action comes as officials intensify efforts to fight what they describe as widespread fraud in government programs.