Trump admin pauses $1 billion in Medicaid payments to California, Minnesota over suspected fraud

The Trump administration is holding back $1 billion in Medicaid payments to California and Minnesota due to "suspected fraud and noncompliance," Health Secretary Robert F. Kennedy said at a news conference on Tuesday. 

Kennedy, who was flanked by Centers for Medicare and Medicaid ​Services Administrator Dr. Mehmet Oz, said that the states will need to provide documentation proving the payments are legitimate before the funds will be released, Reuters reported. 

The administration is withholding approximately $867.5 million in federal Medicaid payments to California, and $199 million to Minnesota, according to the Department of Health and Human Services. 

Kennedy said the administration is targeting questionable spending involving in-home services in California and 14 areas that the Minnesota legislative auditor identified as high risk for fraud. 

Minnesota Gov. Tim Walz and California Gov. Gavin Newsom called the actions a political stunt.