Federal Government Withholds $1.3 Billion in Medicaid Reimbursements to California, Citing Fraud

The action was part of a nationwide crackdown on fraud, waste, and abuse in the Medicare and Medicaid systems.

Vice President JD Vance speaks to reporters at a press briefing at the White House on Oct. 1, 2025. Madalina Kilroy/The Epoch Times

The Trump administration will withhold $1.3 billion in Medicaid payments to California because of potentially fraudulent billing patterns, Vice President JD Vance announced on May 13.

The action comes among a host of others taken recently to crack down on fraudulent activity in Medicare and Medicaid.