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June 30, 2026

Trump Administration Freezes Funding for New York's Medicaid Fraud Unit Amid Performance Concerns

  • The Trump administration has frozen federal funding for New York's Medicaid Fraud Control Unit, citing insufficient criminal indictments and slow case progress.
  • New York Attorney General Letitia James plans to challenge the funding freeze, asserting the state's strong record in recovering Medicaid fraud funds.
  • The funding suspension could be lifted if New York addresses the concerns raised by the administration before September 30.