{"id":804,"date":"2026-06-30T20:18:58","date_gmt":"2026-06-30T20:18:58","guid":{"rendered":"https:\/\/modernhomejournals.com\/?p=804"},"modified":"2026-06-30T20:18:58","modified_gmt":"2026-06-30T20:18:58","slug":"trump-administration-freezes-new-yorks-medicaid-fraud-unit-funding","status":"publish","type":"post","link":"https:\/\/modernhomejournals.com\/?p=804","title":{"rendered":"Trump Administration Freezes New York\u2019s Medicaid Fraud Unit Funding"},"content":{"rendered":"
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The Trump administration suspended funding for New York\u2019s Medicaid Fraud Control Unit on Tuesday, saying the state hadn\u2019t aggressively prosecuted misuse of public money or protected Medicaid patients from \u201cabuse and neglect.\u201d<\/p>\n

Read more Supreme Court Strikes Down Trump\u2019s Order on Birthright Citizenship<\/a><\/p>\n

The U.S. Department of Health and Human Services laid out its grievances with the state agency \u2014 which is tasked with rooting out fraud in the health care program \u2014 in a noting the agency was the lowest performing among similar-size units in 2023 through 2025.<\/p>\n

HHS Inspector General Thomas March Bell claimed that the New York fraud unit and state Attorney General Letitia James\u2019 office are not meeting federal grant requirements. New York receives $60 million in federal funds for Medicaid fraud prevention for a system that serves more than 6.4 million<\/u><\/span> people statewide.<\/p>\n

Bell accused the New York agency of switching its focus from prosecuting criminal fraud cases and patient abuse to pursuing civil fraud cases. In an analysis of fiscal years 2023 and 2025, the unit secured \u201ceight or nine criminal indictments while other similar-sized Units have secured hundreds,\u201d according to the inspector general.<\/p>\n

James denied the accusations, touting the $627 million recovered by her state through the agency\u2019s investigations since 2019.<\/p>\n

\u201cThis administration\u2019s unprecedented attack on New York is another political distraction,\u201d James said Tuesday in a news release<\/u><\/span>. \u201c… The only people this decision benefits are the criminals we investigate every day.\u201d<\/p>\n

In March, the Trump administration launched a fraud probe<\/u><\/span> into New York\u2019s Medicaid program, expanding efforts to clamp down on states\u2019 administration of the federal safety net. The Centers for Medicare & Medicaid Services froze $260 million<\/u><\/span> in Medicaid funding for Minnesota in February over similar concerns about fraud.<\/p>\n

Read more Jackson Delivers Scathing Birthright Opinion Aimed at Thomas<\/a><\/p>\n

A month after the administration announced the probe in New York, HHS officials acknowledged a significant error in the data used to justify the investigation, according to The Associated Press<\/u><\/span>.<\/p>\n

CMS Administrator Mehemet Oz inaccurately stated the percent of New York Medicaid enrollees who utilized personal care services, claiming the level of utilization added up to nearly nearly three-fourths of the total state population on Medicaid, when the correct figures placed it between 6% and 7% of total enrollees, the AP reported.<\/p>\n

\u201cThat level of utilization is unheard of,\u201d Oz said in a video<\/u><\/span> at the time, before the administration admitted to the data blunder.<\/p>\n

Trump has been aggressively targeting Medicaid spending in his second term. A coalition of 25 states and Washington, D.C., filed a lawsuit<\/u><\/span> against the administration on Monday for its strict interpretation of new Medicaid work requirements included in the One Big Beautiful Bill<\/u><\/span>.<\/p>\n

New York joins a short list of other Democratic-led states including Minnesota and California targeted by the Trump administration over their administration of Medicaid programs. New York\u2019s fraud unit will not receive federal dollars until at least after Sept. 30, when the unit\u2019s grant period ends \u2014 though James committed to fighting the funding freeze.<\/p>\n

\u201cWe are considering all legal options to stop this outrageous action,\u201d James said.<\/p>\n

Read more Officials Lay Out Plan to Transform Downtown D.C. for Trump\u2019s July 4 Bash<\/a><\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The state agency won\u2019t get any funding until at least October, though Attorney General Letitia James vows to fight the suspension.<\/p>\n","protected":false},"author":1,"featured_media":803,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-804","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-trump-white-house"],"yoast_head":"\nTrump Administration Freezes New York\u2019s Medicaid Fraud Unit Funding - Modern Home Journals<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/modernhomejournals.com\/?p=804\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trump Administration Freezes New York\u2019s Medicaid Fraud Unit Funding - Modern Home Journals\" \/>\n<meta property=\"og:description\" content=\"The state agency won\u2019t get any funding until at least October, though Attorney General Letitia James vows to fight the suspension.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/modernhomejournals.com\/?p=804\" \/>\n<meta property=\"og:site_name\" content=\"Modern Home Journals\" \/>\n<meta property=\"article:published_time\" content=\"2026-06-30T20:18:58+00:00\" \/>\n<meta name=\"author\" content=\"admin\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"admin\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804\"},\"author\":{\"name\":\"admin\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"headline\":\"Trump Administration Freezes New York\u2019s Medicaid Fraud Unit Funding\",\"datePublished\":\"2026-06-30T20:18:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804\"},\"wordCount\":534,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/f13cedfa525384ffcc8fbb785bf8d549-scaled.jpg\",\"articleSection\":[\"Trump White House\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=804#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804\",\"name\":\"Trump Administration Freezes New York\u2019s Medicaid Fraud Unit Funding - Modern Home Journals\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/f13cedfa525384ffcc8fbb785bf8d549-scaled.jpg\",\"datePublished\":\"2026-06-30T20:18:58+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/#\\\/schema\\\/person\\\/533de239efc09a2ab59959cc1bff86d0\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/modernhomejournals.com\\\/?p=804\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/modernhomejournals.com\\\/?p=804#primaryimage\",\"url\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/f13cedfa525384ffcc8fbb785bf8d549-scaled.jpg\",\"contentUrl\":\"https:\\\/\\\/modernhomejournals.com\\\/wp-content\\\/uploads\\\/2026\\\/06\\\/f13cedfa525384ffcc8fbb785bf8d549-scaled.jpg\",\"width\":2560,\"height\":1707,\"caption\":\"FILE - New York Attorney General Letitia James attends a news conference, Dec. 15, 2025, in New York. 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