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Trump admin freezes over $1B in Medicaid funds for Minnesota, California

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21.07.2026

Trump admin freezes over $1B in Medicaid funds for Minnesota, California

The Trump administration is pausing more than $1 billion in Medicaid payments to California and Minnesota over alleged fraud concerns, officials announced Tuesday. 

Tuesday marked the second time Trump targeted the two states’ Democratic governors — California Gov. Gavin Newsom and Minnesota Gov. Tim Walz — for alleged Medicaid fraud in their states, and continues a trend of freezing funding to blue states to crack down on alleged fraud.  

Health Secretary Robert F. Kennedy Jr. said the administration is deferring more than $867 million in funding to California and $199 million to Minnesota. 

Officials described red flags being raised over claims for providing care to deceased people, as well as allegedly billing for large numbers of patients at the same time. 

Financial audits identified claims in........

© The Hill