CMS Freezes Over $1 Billion in Medicaid Funds in CA and MN Amid Fraud Probe
CMS announced deferrals totaling more than $1 billion in Medicaid funding to California ($867 million) and Minnesota ($199 million) due to suspected fraud, the latest move in a broader crackdown that has deferred over $2.5 billion this year. The withheld funds could be released if the states prove the claims were legitimate, with emphasis on high-risk in-home care services. Minnesota cites provider disenrollments after audits, while California argues the action saves taxpayers; critics call it politically driven and lacking transparency into how deferral amounts are calculated. This is Minnesota’s third deferral and accompanies a broader fraud-fighting push ahead of the 2026 midterms.
- CMS suspends more than $1 billion in Medicaid dollars to Minnesota and California over suspected fraud Politico
- Feds freeze $1B to California, Minnesota Medicaid The Center Square
- Trump Officials Withhold $1 Billion in Medicaid Funds From California and Minnesota Over Suspected Fraud The New York Times
- RFK Jr pauses $1bn Medicaid funding to California and Minnesota The Guardian
- Feds announce new freeze of Medicaid money for Minnesota over fraud concerns MPR News
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