Trump Administration Freezes $1.3 Billion in Medicaid Payments to California

Vice President JD Vance announced Wednesday that the Trump administration is withholding $1.3 billion in Medicaid payments to California and warned that federal funding to other states could also face suspension if authorities fail to aggressively address Medicaid fraud, Rebecca Shabad reported for NBC News.

California Attorney General Rob Bonta separately argued that California appeared to be targeted for political reasons.

California Gov. Gavin Newsom criticized Vance and Mehmet Oz, who oversees the Centers for Medicare and Medicaid Services.

California Attorney General Rob Bonta separately argued that California appeared to be targeted for political reasons.

Vance and Oz said California’s Medicaid records had raised “major red flags.”

The dispute comes amid longstanding political tensions between Newsom and President Trump, particularly over issues involving federal policy, immigration, and congressional redistricting.