Health and Human Services Secretary Robert F. Kennedy Jr. announced on Tuesday the suspension of $1 billion in federal Medicaid funding for California and Minnesota, citing fraud schemes that have been identified and prosecuted in both states — which are run by Democratic leadership.
In a press release, Kennedy stated: “States that receive federal Medicaid funding must demonstrate that every dollar meets federal requirements.” He added, “Medicaid exists to serve vulnerable Americans — not to bankroll unsupported claims. Under President Trump’s leadership, we are restoring accountability across our public programs and protecting taxpayer dollars.”
Kennedy appeared at a media briefing alongside Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz to explain the decision to withhold $867.5 million in federal funds from California and an additional $199 million from Minnesota.
“States that receive federal Medicaid funding must demonstrate that every dollar meets federal requirements. When they cannot, we will not release federal funds until they do,” Kennedy said during the briefing.
