White House Withholding California Medicaid Funds Over Fraud Allegations

The move follows a similar action against Minnesota, which that state is fighting in court.

Vice President JD Vance speaks to the media and has both his hands up as he is speaking.

“The simple reason is because the state of California has not taken fraud very seriously,” Vice President JD Vance said, adding that taxpayers in California and nationwide should be viewed as victims in the case. Jacquelyn Martin/AP

Vice President JD Vance and the White House task force he heads that aims to eliminate fraud announced Wednesday that the administration would withhold billions in Medicaid funding from California because the state isn’t doing enough to prevent fraud in its federal benefit programs.

Vance said California’s inaction was to blame for the loss of funding.

“The simple reason is because the state of California has not taken fraud very seriously,” Vance said, adding that taxpayers in California and nationwide should be viewed as victims in the case.