$1.3 Billion In Medicaid Money To California Deferred

May 14, 2026 4:57 am

WASHINGTON (AP) — The Trump administration is expanding its fraud-busting initiative in federal health programs. Vice President JD Vance on Wednesday announced a $1.3 billion deferral of Medicaid funding to California, which is said to be the largest-ever deferral. The press office of California’s governor is disputing the administration’s suspicions of fraud. The administration is also imposing a six-month freeze on some new Medicare enrollments and warning states to investigate Medicaid fraud or risk losing funding. The new efforts are part of Vance’s anti-fraud task force. Several alleged fraud schemes have been prosecuted in federal health programs, and states have acknowledged it’s a legitimate concern. But some have pushed back on the administration’s aggressive tactics.