Trump administration freezes over $1 billion in Medicaid funds to 2 states
Why it matters: California and Minnesota must provide documentation for the payments before federal health officials release more money.
The Trump administration is freezing more than $1 billion in federal Medicaid payments to California and Minnesota over suspected fraud and compliance concerns. Health and Human Services Secretary Robert F. Kennedy Jr. said Tuesday the states will not receive additional funds until they submit documentation showing the payments were legitimate. Kennedy singled out Govs. Gavin Newsom of California and Tim Walz of Minnesota, saying the money can be released if their states provide basic records for the services in question. The move puts federal Medicaid funding for two large Democratic-led states under immediate pressure as the administration ties future payments to proof the claims were valid.