U.S. Health and Human Services Secretary Robert F. Kennedy Jr. announced Tuesday that $1 billion of federal Medicaid spending has been suspended for the states of California and Minnesota due to concerns over fraud schemes identified by federal authorities.
Kennedy noted that both states, which are currently governed by Democratic leaders, have been subject to numerous prosecutions for fraudulent activities under federal oversight.
“States that receive federal Medicaid funding must demonstrate that every dollar meets federal requirements,” Kennedy said in a press release. “Medicaid exists to serve vulnerable Americans — not to bankroll unsupported claims.”
The secretary added: “Under President Trump’s leadership, we are restoring accountability across our public programs and protecting taxpayer dollars.”
Kennedy made the announcement during a media briefing with Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz, who explained that $867.5 million of federal funds had been withheld from California and an additional $199 million from Minnesota.
Kennedy further stated: “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.”
