Trump administration is withholding more than $1B in Medicaid funds from California and Minnesota, in latest example of weaponizing real and imagined fraud

Federal agents execute a search in December 2025 tied to potential Medicaid fraud in Bloomington, Minn. Christopher Juhn/Anadolu via Getty Images The Trump administration announced on July 21, 2026, that it’s withholding US$867 million in federal healthcare funding for California and $200 million for Minnesota – a total of more than $1 billion. Federal officials said the two states had failed to provide sufficient evidence that a number of disputed medical claims were legitimate. These include…