Trump administration defers over $1 billion in Medicaid payments to California and Minnesota over fraud concerns

The Trump administration announced it is holding back more than $1 billion in Medicaid funds for California and Minnesota, saying the states have suspected fraud and non‑compliance.

Health Secretary Robert F. Kennedy Jr. said the step is part of a strategy to stop fraud before it happens, rather than recover money after prosecutions, and tied it to a broader anti‑fraud campaign launched earlier this year.

The deferral follows earlier similar actions in the two states and is framed as a taxpayer‑saving measure amid rising health‑care costs and the upcoming November midterm elections.