The Trump administration says it is freezing federal funding for New York’s Medicaid Fraud Control Unit (MFCU), a state agency that investigates and prosecutes Medicaid provider fraud and patient abuse or neglect in certain healthcare settings. Multiple outlets report that the U.S. Department of Health and Human Services (HHS) Inspector General Thomas sent a letter to New York officials stating that federal funds would be paused, citing the unit’s performance. The suspension involves millions of dollars, according to reporting that mentions the size of the funding freeze. PBS NewsHour and others describe the action as part of broader Republican-led anti-fraud steps in the healthcare sector. Some accounts note timing around other enforcement activity, including references to recent fraud work involving New York, though the funding decision itself is described primarily as linked to performance concerns rather than a specific case. The MFCU is the state division responsible for combating fraud in Medicaid’s safety-net healthcare system, and the freeze affects federal support for its operations. The administration’s stated rationale centers on performance requirements outlined in the funding process.