Federal Medicaid Freeze Targets California and Minnesota Over Fraud Probes

The Trump administration’s Health and Human Services agency announced withholding about $867.5 million in California’s Medicaid payments and $199 million for Minnesota over suspected fraud, focused on in‑home health services and eligibility tied to immigration status. CMS cited California’s rapid growth in in‑home care spending and ongoing fraud concerns, while California officials denounced the move as political theater but pledged cooperation to verify services. The action follows earlier deferrals of Medicaid funds to California and fits a broader federal crackdown on suspected Medicaid fraud.