SUBSCRIBE TO OUR FREE NEWSLETTER
Daily news & progressive opinion—funded by the people, not the corporations—delivered straight to your inbox.
5
#000000
#FFFFFF
5
#000000
#FFFFFF
US Vice President JD Vance speaks alongside Centers for Medicare and Medicaid Services Administrator Mehmet Oz during a press conference on anti-fraud initiatives at the White House in Washington, DC, on May 13, 2026.
(Photo by Kent Nishimura/AFP via Getty Images)
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.
We are at a crossroads
This country and this world are at a monumental crossroads. US voters have an opportunity to beat back the forces of fascism and confront the billionaires who are rigging the economy, our media system, and our democracy, making it increasingly impossible for ordinary people to get by. We’re not just talking about the election. We’re talking about what must be done once these fascist elements are vanquished from power. We need a bolder set of solutions than what either major party has so far been willing to offer and a working-class movement ready to fight like hell for it. Trump didn't emerge from nowhere. The conditions that fueled MAGA authoritarianism were created by decades of radical neoliberal economic policies and a corrupt political system dominated by corporate interests. They slashed taxes on the super-rich, promising that the benefits would trickle down. They said giveaways to the corporate titans would make life more affordable for the rest of us. It was all bullshit. And when a bitter, betrayed populace searches for someone to blame, right-wing demagogues have little trouble finding scapegoats. People know when they're being lied to, but you won't hear any of this from the corporate media. Only independent journalism—powered and funded by people who believe in building a better world—can deliver truly trustworthy daily news. If you share our vision, please contribute whatever you can to sustain our work. |
Our work is licensed under Creative Commons (CC BY-NC-ND 3.0). Feel free to republish and share widely.
"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.
"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.
We've had enough. The 1% own and operate the corporate media. They are doing everything they can to defend the status quo, squash dissent and protect the wealthy and the powerful. The Common Dreams media model is different. We cover the news that matters to the 99%. Our mission? To inform. To inspire. To ignite change for the common good. How? Nonprofit. Independent. Reader-supported. Free to read. Free to republish. Free to share. With no advertising. No paywalls. No selling of your data. Thousands of small donations fund our newsroom and allow us to continue publishing. Can you chip in? We can't do it without you. Thank you.
To inform. To inspire. To ignite change for the common good.
News & Opinion
Trending
Common Dreams, Inc. Founded 1997. Registered 501(c3) Non-Profit
Privacy Policy