OAN Staff Addie Davis
12:45 PM – Tuesday, July 21, 2026
Health and Human Services (HHS) Secretary Robert F. Kennedy Jr. announced that the Centers for Medicare & Medicaid Services (CMS) was pausing Medicaid payments amounting to over $1 billion to Minnesota and California for suspected fraud and noncompliance.
In a Tuesday press conference alongside CMS Administrator Dr. Mehmet Oz, Kennedy said CMS was stopping the payments until the blue states could provide documentation that the funds were being used legitimately.
Kennedy stated that federal officials used advanced data analytics to flag suspicious activity and potential Medicaid fraud in both states. Kennedy noted that $199 million in deferred funding for Minnesota was tied to 14 high-risk service areas previously identified by state auditors, while $867.5 million withheld from California primarily involved in-home care programs.
Both states have faced intense scrutiny over program integrity, with independent media investigations and state audits alleging widespread fraud across various taxpayer-funded social service programs.
The HHS secretary explained that although the Medicaid funding is provided federally, the states are responsible for how the money is spent.
“We have reason to believe that taxpayer money is being misused, especially through fraud,” Kennedy said. “If Governor Gavin Newsom or Governor Tim Walz want this funding released, all they have to do is provide basic documentation showing that these services are legitimate and not fraudulent,” he continued.
“We are not sending Medicaid dollars out the door until we have confidence that they are being spent lawfully and appropriately,” RFK Jr. added.
Under the administration of former Democrat President Joe Biden and then-HHS Secretary Xavier Becerra, fraud was allowed to flourish, Kennedy emphasized.
“Instead of protecting your money, they opened the floodgates to theft. They dismantled basic program integrity and oversight,” he asserted.
Stay informed! Receive breaking news alerts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
What do YOU think? Click here to jump to the comments!
Sponsored Content Below
Be the first to comment