Trump Admin Defers $1.3 Billion In Medicaid Payments To California
Ireland Owens
Reporter
May 14, 2026
The Trump administration announced Wednesday it is withholding $1.3 billion in Medicaid payments to California, alleging the state has not done enough to tackle fraud.
Vice President JD Vance claimed during an event at the White House that the “simple reason” for deferring Medicaid payments to the Golden State is “because the state of California has not taken fraud very seriously.” The news comes as the administration has recently been moving to crack down on healthcare fraud nationwide. (RELATED: EXCLUSIVE: Trump Admin Intercepts $60 Million In Student Loan Fraud)
“There are California taxpayers and American taxpayers who are being defrauded because California isn’t taking its program seriously, but also you have people who have been prescribed medications that they don’t even need,” Vance said. “They’ve had drugs put into their bodies that they don’t need because fraudsters have actually encouraged false prescriptions and false administration of medications.”
.@VP: “We’re announcing that the federal government is deferring $1.3 billion in Medicaid reimbursements from the state of California — and the simple reason is because the state of California has not taken fraud very seriously.” pic.twitter.com/o3JGiKwP3K
— Rapid Response 47 (@RapidResponse47) May 13, 2026
https://dailycaller.com/2026/05/14/admin-1-3-billion-medicaid-payments-california/
