The Trump administration is also warning all 50 states that it could freeze funding for their Medicaid fraud units unless they investigate a
The Trump administration is also warning all 50 states that it could freeze funding for their Medicaid fraud units unless they investigate and prosecute fraud by providers.
May 13, 2026, 12:55 PM MST / Updated May 13, 2026, 5:40 PM MST
By Rebecca Shabad
Vice President JD Vance announced Wednesday that the Trump administration is withholding $1.3 billion in Medicaid payments to California and is threatening to suspend federal funding to all states if they don’t aggressively prosecute fraud in their Medicaid programs.
As part of his role as the fraud czar, Vance said that the administration is targeting California because the state isn’t taking fraud seriously.
