RFK Jr pauses $1bn Medicaid funding to California and Minnesota

The Department of Health and Human Services has paused over $1 billion in Medicaid funding to California and Minnesota. Secretary Robert F. Kennedy Jr. stated the decision is based on findings of suspected fraud and noncompliance. The federal government points to $867 million withheld from California and approximately $200 million from Minnesota.

Officials claim they used artificial intelligence and advanced data analytics to detect irregular billing patterns and suspicious activity within state health programs. According to Secretary Kennedy, these tools are now central to how the agency identifies potential misuse of federal healthcare dollars.

Medicare and Medicaid Services administrator Mehmet Oz emphasized that the pause is necessary to ensure legitimacy. The department is also expanding its authority to exclude providers from federal programs if they are found to be participating in fraud. Officials insist that states must provide clear documentation to resolve these payment issues.

This move comes after previous disputes regarding Medicaid oversight. Minnesota officials initiated a lawsuit earlier this year following earlier payment pauses. The administration maintains that these actions protect the integrity of the healthcare system while critics express concern over the potential impact on in-home care services for disabled individuals.