Health and Human Services Secretary Robert F. Kennedy Jr. said Tuesday he’s stopping more than $1 billion in federal Medicaid payments to California and Minnesota over suspected fraud.
“We are not sending Medicaid dollars out the door until we have confidence that they are being spent lawfully and appropriately,” Kennedy said at an announcement on Tuesday.
Kennedy said if California Gov. Gavin Newsom (D) and Minnesota Gov. Tim Walz (D) want the money to fund low-income healthcare, “they need to provide documentation that these payments are legitimate.”
Kennedy blamed the Biden administration and the Democratic leadership in both blue states for alleged misuse of taxpayer dollars.
“Instead of protecting your money, they open the floodgates to theft,” Kennedy said. “They dismantle basic program integrity and oversight.”
The health secretary criticized the Biden administration’s oversight of Medicaid, arguing that former HHS Secretary Xavier Becerra “looked the other way while fraud, waste, and abuse exploded.”
“The scammers got paid,” Kennedy said. “The taxpayers got stuck with these enormous bills.”
The Centers for Medicare and Medicaid Services is deferring over $200 million and over $867 million in federal Medicaid payments for Minnesota and California, respectively. The hold will be in place while federal officers review “high-risk Medicaid claims” and document deficiencies.
In Minnesota, the funding involves 14 high-risk areas that were identified as suspect because of vulnerabilities or evidence of fraudulent activity.
CMS officials suspect the questionable spending in California is rooted in in-home services. Over the past two federal fiscal years, California’s spending in these programs went up 24%, while the rest of the country’s average was 12%, according to CMS administrator Mehmet Oz.
https://nypost.com/2026/07/21/us-news/rfk-jr-yanks-medicaid-funds-to-california-and-minnesota/