RFK Jr. withholding more than $1B from CA, MN over ‘fraud’ allegations

Opinion>Opinions - Lindsey's Lens The views expressed by contributors are their own and not the view of The Hill RFK Jr. withholding more than $1B from CA, MN over ‘fraud’ allegations Comments: by Lindsey Granger, opinion contributor - 07/22/26 1:05 PM ET Comments: Link copied by Lindsey Granger, opinion contributor - 07/22/26 1:05 PM ET Comments: Link copied

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Robert F. Kennedy Jr. is targeting two Democratic-led states, announcing the federal government will withhold more than $1 billion in federal Medicaid funding from California and Minnesota over what it says are widespread fraud concerns.

He says the administration is pausing more than $867 million for California and roughly $200 million for Minnesota until the states can prove the claims in question are legitimate. Kennedy accused the Biden administration and Democratic leaders in both states of failing to protect taxpayer money, saying, “Instead of protecting your money, they open the floodgates to theft. They dismantle basic program integrity and oversight.”

CMS Administrator Dr. Mehmet Oz defended the funding freeze, saying these states are “signature and significant outliers.”

I’ve already explained how I feel about this: Healthcare fraud should absolutely be prosecuted. Anyone stealing taxpayer dollars from Medicaid should face consequences, regardless of political party, state or position. That said, the administration continues to spotlight California and Minnesota, both Democratic-led states.

Yet federal enforcement data shows Medicaid fraud is hardly unique to blue states. Texas has consistently ranked among the states with the highest raw dollar amounts of Medicaid fraud. Florida also routinely ranks near the top.

Meanwhile, Republican-led Ohio is in the middle of one of the nation’s largest Medicaid fraud crackdowns. Just this month, federal and state prosecutors announced charges tied to healthcare fraud schemes totaling tens of millions of dollars. Ohio’s attorney general also announced six new Medicaid fraud indictments involving doctors and home health providers accused of falsifying records, billing for services never provided, or claiming impossible work schedules exceeding 24 hours in a day.

In fact, those Ohio indictments were part of the Justice Department’s nationwide 2026 National Health Care Fraud Takedown, which charged 455 defendants across 45 states and territories in alleged healthcare fraud schemes totaling more than $6.5 billion.

That’s why I question whether RFK Jr.’s new plan is being applied consistently. If the goal is rooting out fraud, then investigate fraud everywhere. Follow the evidence — not the electoral map.

Withholding Medicaid money doesn’t just affect state governments. It affects hospitals, clinics, nursing homes and, ultimately, patients.

Minnesota has already had $243 million in Medicaid funding frozen since February. California has had $1.3 billion withheld since May. Tuesday’s announcement adds another $1 billion to that total.

States rely on those federal dollars to help fund healthcare for low-income families, seniors, children, and people with disabilities. Delayed payments can strain hospital budgets, particularly in rural communities, slow provider reimbursements, and force states to make difficult budget decisions while investigations continue.

Again, no one is arguing that fraudulent claims should be paid. But if we’re going to wage a national war on Medicaid fraud, it has to actually be national. That means Texas. That means Florida. That means Ohio.

That means every state where taxpayers are being cheated, not just the ones run by governors from the opposing political party. Oh, and while we’re at it, maybe RFK Jr. can tell the president he should stop pardoning folks like Florida nursing home mogul Philip Esformes, who was convicted of stealing $1.3 billion from Medicare and Medicaid a few years ago.

Lindsey Granger is a NewsNation contributor and co-host of The Hill’s commentary show “Rising.” This column is an edited transcription of her on-air commentary.

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