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medicaid
California Officials Accuse Trump Admin of 'Political Retribution' as Vance Suspends Medicaid Payments
"Withholding reimbursements only further hurts patients, strains providers, and drives up costs," said one Democratic congresswoman. "We will fight this with everything we’ve got."
May 14, 2026
"Political retribution, plain and simple," was how US Sen. Alex Padilla described an announcement by Vice President JD Vance late Wednesday regarding the White House's decision to withhold $1.3 billion in Medicaid reimbursement payments to California.
Vance and Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services, claimed the state's Medicaid records have generated "red flags" and demanded officials clarify $630 million in billing, $500 million that's been spent on home health services, and $200 million in what Oz called "questionable expenditures," which he claimed had been used to provide coverage for undocumented immigrants, who are not eligible for Medicaid.
The announcement came a month after Vance's federal anti-fraud task force suspended the licenses of nearly 450 hospice care facilities and 23 home health agencies in the Los Angeles area, accusing them of fraud.
Vance also warned that all 50 states could soon see federal funding for their Medicaid Fraud Control Units frozen if they fail to "aggressively prosecute Medicaid fraud."
"We can turn off other resources within their state Medicaid programs as well," said the vice president.
California Gov. Gavin Newsom, who has frequently sparred with the Trump administration, said Vance and Oz were "attacking programs that keep seniors and people with disabilities OUT of nursing homes," which are far more expensive to run than home healthcare agencies.
Newsom said the growth of the state's In-Home Supportive Services program has saved taxpayers "$107,000 per person" by reducing reliance on nursing homes.
"MAGA hates in-home support programs—which help people stay out of costly institutional settings like nursing homes and get the care they deserve, typically from loved ones," said Newsom.
Newsom also said the Trump administration had informed state officials that the deadline to review California's Medicaid records "before deciding whether to defer funding" would be later in the month.
Democratic members of Congress warned that their constituents rely heavily on Medicaid, with seven out of 10 of the congressional districts with the highest Medicaid enrollment located in California.
Rep. Sydney Kamlager-Dove (D-Calif.) said that 56% of her constituents rely on "this lifesaving program," and many have already been harmed by the Republican Party's slashing of Medicaid funding in the One Big Beautiful Bill Act last year.
"Withholding reimbursements only further hurts patients, strains providers, and drives up costs," said Kamlager-Dove. "We will fight this with everything we’ve got."
Rep. Jimmy Panetta (D-Calif.) said more than 120,000 people in his district depend on the federal healthcare program for low-income households and people with disabilities.
"This administration needs to stop playing politics with people’s health and lives," said Panetta. "When people commit fraud, they should be punished accordingly. However, this administration continues to punish California for political purposes, including penalizing innocent people by taking their healthcare away."
State Attorney General Rob Bonta noted that California has "not hesitated to challenge unlawful actions by the Trump administration," and suggested the state could file a legal challenge against the withholding of Medicaid funds.
He also accused the administration of targeting the heavily Democratic state "for political reasons."
The anti-fraud task force led by Vance has so far exclusively focused on rooting out alleged fraud in federal programs in blue states. The White House suspended $259 million in federal payments to Minnesota earlier this year after a scandal regarding the state's social services system.
"The Trump administration is attacking California over claims that they can't back up," said Padilla. "Let's be real, this isn't about fraud—it's about punishing a state that didn't vote for" President Donald Trump.
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We Crisscrossed America to Tell Republicans: Stop Taking Our Healthcare
In over 35 events across the US, patients, healthcare workers, and advocates came together to highlight the pain that Republicans are inflicting on their own constituents.
May 09, 2026
Republicans voted to slash $1 trillion from Medicaid. They ended Affordable Care Act subsidies, putting healthcare out of reach for millions of Americans. All to give massive tax handouts to the Epstein class, so they can buy another yacht.
Now, America’s already rotten healthcare system is spiraling into crisis. Hospitals across the country are at risk of closing, with those in rural areas most at risk. Those that remain will have longer waits and fewer resources. Even those with private insurance are not spared the consequences of Republicans removing $1 trillion in resources from the healthcare system. If you aren’t a billionaire, your healthcare is about to get worse and more expensive—if it hasn’t already.
This spring, Americans are fighting back. The Stop Taking Our Healthcare campaign included over 35 events across the country, concentrated in congressional districts with vulnerable Republicans. Many of these events took place in front of hospitals at risk of closure.
I want to share the stories of just a few of these events, where patients, healthcare workers, and advocates came together to highlight the pain that Republicans are inflicting on their own constituents.
Everywhere I go, Americans are worried about losing their healthcare and the threats to their local hospitals.
Rahway, New Jersey is located in New Jersey’s 7th District, currently represented by Republican Rep. Tom Kean Jr. At our protest across the street from Robert Wood Johnson University Hospital, resident Theresa Luoni worried about her children’s future: “Human beings with real needs are dropped off at homeless shelters when Medicaid runs out. As I watch this happen, I can’t help but see my children’s future. I’m the mother of two autistic boys. Without the right therapies, their needs escalate. My children are not statistics. They are not just autistic. They are human. They deserve safety. They deserve dignity. We go to bed every night and wonder if the care we depend on will go away.”
When healthcare is cut, when Medicaid is reduced, when services disappear, the impact is not theoretical. It's a child losing access to therapy that helps them communicate. - Theresa Luoni, #NJ07 resident
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— Social Security Works (@socialsecurityworks.org) April 28, 2026 at 9:42 AM
Sadly, Theresa is far from alone in needing to worry about her family’s healthcare: 16.5% of the residents of Rahway rely on Medicaid and 400,000 patients across New Jersey are projected to lose their healthcare as a result of the $1 trillion in cuts to Medicaid thanks to the law passed by Rep. Tom Kean Jr. and his fellow Republicans.
In New York’s 17th District, currently represented by Republican Rep. Mike Lawler, Hudson Valley community members gathered at Northern Westchester Hospital to raise awareness of the dangers to their hospitals and healthcare posed by the $1 trillion in healthcare cuts Rep. Lawler and other Republicans passed into law.
Karen, a family caregiver who lives in NY-17, spoke about her efforts to take care of her parents, who are 88 and 94. One of them has dementia. Her parents need full-time support, and rely on Medicaid for round-the-clock care. Rep. Lawler recklessly voted for a law that will cut $128 billion from New York’s Medicaid program over the next decade, putting 45 hospitals in New York at risk of closing, including two hospitals in his own district. Like Karen’s parents, 211,500 people in New York’s 17th District rely on Medicaid. Rep. Lawler is willing to put the health of his constituents at risk to give massive tax breaks to billionaires.
When I hear about cuts to Medicaid, I know exactly what that means for families here in #NY17. Fewer services, overwhelmed providers, and people going without the care they need.But despite what families like mine are going through, Rep. Mike Lawler voted to cut Medicaid. - Karen Rubinson
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— Social Security Works (@socialsecurityworks.org) April 29, 2026 at 11:58 AM
In Bakersfield, California, residents gathered at Kern Medical College to demand healthcare, not warfare. Jon “Bowzer” Bauman, president of Social Security Works PAC, raised alarms about the impact of Republican healthcare cuts on local residents in nearby communities, including the people living in Republican Rep. David Valadao’s district. Sam Hardman, a local resident and US Army veteran, expressed his feelings that congressional Republicans like Reps. David Valadao and Vince Fong “have no idea what it is to care for another person” while speaking about how his family’s healthcare needs.
In Montana, our protests in Missoula and Polson focused on the concerns of local community members worried about losing their healthcare. In front of Providence St. Patrick Hospital in Missoula and Providence St. Joseph Medical Clinic in Polson, several local elected officials and candidates, including MT-01 Congressional candidate Sam Forstag, joined me in bringing attention to the eight hospitals around Montana in danger of closing.
Over 218,000 Montanans have healthcare coverage through Medicaid, but Republican cuts are putting the health of Montanans at risk and leaving vulnerable communities without access to affordable care.
In Colorado’s 8th District, currently represented by Republican Rep. Gabe Evans, neighbors gathered outside the Clinica Family Health clinic in Westminster. At least nine hospitals in Colorado are at risk of closing or reducing services. In Colorado’s 8th District, 1 in 4 people are covered by Medicaid. Yet Rep. Gabe Evans supported $1 trillion in healthcare cuts, so the richest of the rich don’t have to pay their fair share.
Alex Lawson: Let's remind ourselves WHY they cut $1 trillion out of Medicaid. Why 56K people are going to die every year.To give TRILLIONS in tax handouts to the richest people the world has ever known so they can buy another golden yacht to sail to Epstein's Island or whatever it is that they do.
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— Social Security Works (@socialsecurityworks.org) May 5, 2026 at 1:58 PM
Donna Smith, a local resident, attended the protest, and described standing in the freezing rain to deliver a message of defiance. Joining Donna in demanding that those who take away healthcare be held accountable, Dr. Vince Markovchick spoke about his experience running the emergency medicine department at Denver Health for 26 years, and what happens when patients cannot afford the care they need.
To conclude our Stop Taking Our Healthcare campaign, Michigan’s Democratic Rep. Debbie Dingell and other lawmakers joined us as part of a national virtual town hall to discuss the effects of the $1 trillion in Republican healthcare cuts. Rep. Dingell declared: “Across this country, people are feeling the continued attacks on their healthcare.” Rep. Dingell mentioned hearing from parents, seniors, and workers who are all worried about losing their healthcare and what could happen to them next.
While the Stop Taking Our Healthcare campaign has finished, the fight for our healthcare must continue. Everywhere I go, Americans are worried about losing their healthcare and the threats to their local hospitals. The Republicans who decided to cut $1 trillion from our healthcare to hand out massive tax giveaways to the richest of the rich will face the consequences this November.
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Why Did We Stand in the Freezing Rain and Snow? Healthcare
In Colorado and all over the country, we gathered to demand that those who vote to take our healthcare away will be held accountable.
May 08, 2026
What we say at rallies and meetings with people who could help, but rarely do, is sometimes abstract and loaded with policy discussions that muddle even interested advocates at times. Healthcare in Colorado and all over the country is not only taking a hit with provisions of the “Big Beautiful Bill” passed by Congress in 2024 beginning to take effect, the healthcare industry is also still and increasingly one of the most profitable investment opportunities and nearly one-fifth of our GDP, or gross domestic product, flows from the healthcare industry. Private equity is in. Wall Street is in. It is as though the health industry CEOs and the elected officials they fund know exactly how to play the market to win. Human life is on the balance sheet bottom line buried in accounting lingo and those gorgeous profit terms.
Medicaid cuts hurt people. Medicaid cuts hurt communities. And on Tuesday, May 5, 2026, Coloradans were busy explaining the pain. Some were in warm conference rooms at Denver Health with a United States senator, and some were in the cold rain outside a clinic that could suffer or even close because of the cuts.
Cut losses; maximize gains. We are human widgets—forget the AI revolution if you have ignored the business insurgency into every aspect of the healthcare industry. We all needed to learn the language of greed and profit taking without regard for human life, and all the while we argued lives were lost without coverage. Those numbers of sacrificial dead are no match for the billions and yes, trillions, of dollars wagered, won, and lost making sure that final bottom line looks sexy.
So, in Colorado and all over the country, we gathered to demand those who vote to take our healthcare away will be held accountable. We may be widgets to the bean counters, but to one another and across multiple states and organizations, we stood together against the storm. In Westminster, Colorado, it was freezing rain and chilly, but we stood and carried on.
We intend to love one another enough to make sure human life is the profit we value more than the almighty dollar.
Dr. Vince Markovchick ran the emergency medicine department at Denver Health for 26 years. Think about what he must have seen and heard over time. Human life saved. The care not given when a patient tells the doctor they cannot afford the care or missing work or groceries if they allow care for a serious illness or injury. That is what Dr. Markovchick spoke about. Tender mercies delayed and shared as the rain briefly paused as we listened, as if the universe cared too. (Meanwhile, safe and sound and warm, in the hospital where he gave his professional life for us all, Sen. John Hickenlooper (D-Colo.) held an invitation only round table on the Medicaid cuts. Even the press stayed nice and warm and didn’t come to witness the more than 25 Coloradans who gathered in the cold.)
Lydia Guzman spoke with passion and fire about the damage she saw and sees in lives without access to care; Tyler Quick spoke to us about the issues the LGBTQ+ community faces in receiving not only gender affirming care but HIV prevention and care. We might weep for his reminder to us that what happens in the LGBTQ+ community will also spread to the straight community and others among us. Like it or not, no human is an island. Nope. We are the human community.
What do we demand together in this drippy, difficult weather? We spoke clearly, “Stop Taking Our Healthcare.” No more beautiful bills taking benefits away; no more enforcement of policies in unrelated ways to healthcare delivery; and no more healthcare dollars wasted on business measures like advertising, stockholder pleasures, “inducements” for prescribing or procedures, lobbying expenses for policies passed or policies blocked, or even baubles and freebies when you table with your wares at all those conferences.
Then, we would be fine with seeing that end of the healthcare industry given over to actual delivery of care—for us all. And we intend to stay loud. We intend to be seen. And we intend to love one another enough to make sure human life is the profit we value more than the almighty dollar.
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