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Trump officials hit California with ‘largest ever’ freeze on Medicaid funds
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politics2h ago

Trump officials hit California with ‘largest ever’ freeze on Medicaid funds

  • The Trump administration suspended about $1.1 billion in California’s Medicaid funding for home health services.
  • California argues the program helps about 900,000 residents stay in their homes instead of nursing facilities.
  • The move includes an additional $200 million in withholdings tied to administrative claims the state expected to resolve.
  • California Governor Gavin Newsom defended the expansion, arguing the program should be celebrated, not punished.
  • The action followed similar steps in Minnesota, where the federal government froze Medicaid payments earlier.
  • Vice President JD Vance accused California, New York, and Hawaii of not doing enough to combat Medicaid fraud.
  • California health officials say they have a strong oversight system to detect fraud in home health services.
  • California’s In-home Supportive Services (IHSS) program serves about 900,000 people.
  • Hospice care is cited in related actions, with a six-month nationwide moratorium on new hospice providers.
  • State health officials noted potential harm to seniors and disabled individuals if funds are delayed.
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