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Dr. Mehmet Oz, Centers for Medicare & Medicaid Services administrator, speaks at an event about maternal healthcare, Monday, May 11, 2026, in the Oval Office of the White House, in Washington.

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Officials say $1.3 billion in Medicaid money to California will be deferred over suspicions of fraud

Officials say $1.3 billion in Medicaid money to California will be deferred over suspicions of fraud

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.