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The Trump administration paused more than $1 billion in federal Medicaid payments to California and Minnesota on Tuesday, citing “suspected fraud and noncompliance,” as Gov. Gavin Newsom\u00a0(D-Calif.) accused Washington of targeting California “for political reasons.”<\/p>\n
Federal Officials Cite Suspicious Billing Patterns<\/p>\n
The Centers for Medicare and Medicaid Services deferred about $867.5 million for California and $199 million for Minnesota while it reviews claims. Health Secretary Robert F. Kennedy Jr. said states must “provide documentation that these payments are legitimate” before CMS releases the money.<\/p>\n
Don’t Miss:<\/p>\n
CMS Administrator Dr. Mehmet Oz said, “If it smells like fraud, we’re not paying for it anymore.” Officials cited unusual billing patterns and rapid growth in California’s in-home care program but offered no concrete examples proving fraud. AP reported that some providers allegedly billed for several patients simultaneously or after a beneficiary’s death.<\/p>\n
The action follows the administration’s earlier decision to defer $1.3 billion in California Medicaid funding and Oz’s order for all 50 states to strengthen Medicaid fraud controls. It remains unclear whether Tuesday’s deferrals overlap with earlier withheld funds.<\/p>\n
California Democrats Reject Claims as Political<\/p>\n
Newsom called the move a recycled political stunt. “California isn’t being targeted because Trump has evidence of fraud. We are being targeted for political reasons,” he said, arguing that expanded home care saves taxpayer money by keeping seniors and people with disabilities out of costlier nursing homes. California said it would “collaborate with CMS in good faith efforts to combat fraud.”<\/p>\n
Today’s announcement from Dr. Oz is the same recycled political stunt we’ve seen before.<\/p>\n
California isn’t being targeted because Trump has evidence of fraud. We are being targeted for political reasons \u2014 and because Dr. Oz doesn’t understand that we are *SAVING* taxpayers money\u2026 https:\/\/t.co\/rYyTUSbLqC<\/a><\/p>\n \u2014 Governor Newsom Press Office (@GovPressOffice) July 21, 2026<\/a><\/p>\n Trending: Avoid the #1 Investing Mistake: How Your ‘Safe’ Holdings Could Be Costing You Big Time<\/a><\/p>\n State Sen. Scott Wiener (D-Calif.) in a statement said the administration was “blocking healthcare for vulnerable seniors for political reasons.”<\/p>\n “This Administration’s claims about fraud are baseless,” Wiener said. “When it comes to fraud, the call is coming from inside the house.”<\/p>\n Deferrals Remain Temporary Pending State Documentation<\/p>\n Minnesota Gov. Tim Walz (D) similarly called the action political retribution. The administration had already halted some Minnesota reimbursements, while Minnesota says it has cooperated with CMS investigations.<\/p>\n This isn’t about fraud \u2013 it’s about cutting your healthcare so that Trump can afford the tax cuts he gave to billionaires.<\/p>\n They’re cutting more money in healthcare than they’ve prosecuted for fraud. The math doesn’t add up.https:\/\/t.co\/2jl43FNdNU<\/a><\/p>\n \u2014 Governor Tim Walz (@GovTimWalz) July 21, 2026<\/a><\/p>\n The deferrals are temporary and do not change Medicaid eligibility or benefits. States can recover the money by documenting that their claims comply with federal rules.<\/p>\n Image via Shutterstock<\/p>\n Read Next:\u00a0<\/p>\n Building Wealth Across More Than Just the Market<\/p>\n Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.<\/p>\n Arrived<\/p>\n Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can <\/a>buy fractional shares of single-family rentals and vacation homes starting with as little as $100<\/a>. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.<\/p>\n Realberry<\/p>\n Institutional-quality real estate has traditionally been difficult for individual investors to access. Realberry gives accredited investors direct access to private real estate opportunities <\/a>backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests.<\/p>\n FarmTogether<\/p>\n Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors, FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000<\/a> \u2014 fully managed, with no landlord headaches.<\/p>\n Immersed<\/p>\n Immersed is building technology for the future of work through spatial computing.<\/a> Known for its AR\/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.<\/p>\n Fundrise<\/p>\n Private real estate and private credit can add income and stability to a stock-heavy portfolio. Fundrise offers access to diversified private real estate<\/a> and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.<\/p>\n Mode Mobile<\/p>\n Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day.<\/a> Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte’s fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.\u00a0<\/p>\n EquityMultiple\u00a0<\/p>\n For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000<\/a>,<\/a> with only ~5% of opportunities passing their due diligence process.<\/p>\n \u00a9 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/p>\n","protected":false},"excerpt":{"rendered":"Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. 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