Trump Medicaid Fraud Probes Test Blue States: States of Play

March 20, 2026, 6:33 PM UTC
Photographer: Andrew Harrer/Bloomberg via Getty Images

Democratic-led states are facing heightened pressure from the Trump administration over allegations of sweeping Medicaid fraud, a tactic that threatens to expand and test the bounds of federal and state collaboration on addressing the issue, Ian Lopez reports.

  • California, Maine, and New York are under intense scrutiny by HHS for their oversight of their Medicaid programs, and state leaders are facing tough questions on fraud detection and corrective action.
  • Minnesota could have $2 billion withheld annually by HHS, which found the state’s corrective action plan for combating fraud to be inadequate. It has since sued the federal government over its ...

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