Trump administration withholds 1.2 billion dollars in California Medicaid funding

The Trump administration announced on October 20, 2026, that it is withholding an additional 1.2 billion dollars in federal Medicaid funding from California. The New York Post, Fox News, the Washington Examiner, and the Los Angeles Times all reported on the payment deferral. Dr. Mehmet Oz, who heads the Centers for Medicare and Medicaid Services, stated that the action was taken on behalf of Health and Human Services Secretary Robert F. Kennedy. [1][2][3][4]

According to the New York Post and the Washington Examiner, the Department of Health and Human Services targeted the funds over concerns involving suspected fraud. Dr. Oz questioned the rapid expansion of California's Medicaid program for older adults and individuals with disabilities. The New York Post added that federal officials said they could not explain the pace at which the state's personal care spending has increased. [1][3]

The latest withholding adds to an ongoing federal crackdown in the state. As FTMQ News reported earlier, federal law enforcement officers recently charged 28 foreign nationals in California over alleged illegal voter registration under an operation named Operation Protect the Vote. In separate state news, as FTMQ News also previously reported, total national spending on Medicaid reached 931.7 billion dollars in 2024. [6][7]