The Trump administration is pausing more than $1 billion in federal Medicaid payments to California and Minnesota, citing suspected fraud and noncompliance in the states’ public health insurance programs. Health and Human Services Secretary Robert F. Kennedy Jr. announced the action, saying the states must provide documentation demonstrating that Medicaid payments were legitimate before the federal funds are released. Multiple outlets report that federal officials based the decision on audits and ongoing review that identified potential fraud-related issues.
CBS News reports the pause covers $867.5 million for California and $199 million for Minnesota, while other outlets describe the total as slightly above $1 billion. The action is framed as a compliance measure tied to federal oversight of Medicaid administration. The Guardian and The Hill also note this is not the first time Minnesota has been targeted this year: earlier in 2025, the administration paused $243 million in Medicaid payments to Minnesota, and the Tuesday announcement represents a renewed withholding affecting both states.
The states are expected to respond with evidence to support the payments’ legitimacy, after which federal funds may be released.