House Oversight launches probe into allegations New York misused federal Medicaid funds

The House Oversight Committee on Wednesday sent a letter to New York Democratic Gov. Kathy Hochul, notifying her of an investigation into the state's alleged misuse of federal funding for Medicaid. 

Medicaid is a joint federal and state program that is designed to help provide medical insurance for low-income families, but House Oversight Chairman James Comer claimed New York appears to have withheld or clawed back over $1 billion in federal Medicaid funds from localities to help balance the state budget in 2023.

The committee requested Hochul turn over documents and communications related to the allegations.

“This fiscal coverup has forced local governments to increase property taxes and cut local services," the committee wrote. "It is felt most acutely in small and mid-sized counties like Broome and Erie, who do not have the enormous tax base to easily make up for the state’s clawbacks. Sadly, the State of New York’s abuse of the Medicaid system does not stop there.

"The abuse of federal taxpayer funds intended to ensure health care coverage for the most vulnerable to coverup your state’s budget shortfall is unacceptable,” the lawmakers added. 

The committee gave Hochul until July 16 to comply. 

Misty Severi is a news reporter for Just The News. You can follow her on X for more coverage.