California Governor Gavin Newsom criticized the Trump administration Tuesday for freezing more than $867 million in federal Medicaid funding, calling it a "recycled political stunt" used for political targeting rather than fraud prevention.
Health and Human Services Secretary Robert F. Kennedy Jr. announced the $1 billion freeze affecting California and Minnesota, claiming the funds would be released once states "provide basic documentation showing that these services are legitimate and not fraudulent," The Wall Street Journal reported.
Centers for Medicare and Medicaid Administrator Mehmet Oz characterized the freeze as "very conservative," suggesting the administration could have withheld more funds.
Newsom's press office responded sharply, arguing California is not being targeted because President Donald Trump has evidence of fraud.
"We are being targeted for political reasons," he wrote and added, "And because Dr. Oz doesn’t understand that we are *SAVING* taxpayers money by keeping seniors and people with disabilities out of far more expensive nursing homes!"
The administration has increasingly used federal funding withholding as a coercion tool, previously threatening states with grant losses over election changes.
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