The Trump administration is pausing and deferring more than $1 billion in federal Medicaid payments to California and Minnesota amid suspected fraud and noncompliance, with HHS Secretary Robert F. Kennedy Jr. demanding documentation to justify the spending. Officials said the pause targets not only broad programs but also specific high-risk areas such as in-home and personal care services and certain durable medical equipment, as part of a broader anti-fraud push. California and Minnesota have not provided the requested documentation for audits, prompting the withholding of funds and a warning that payments will resume only once claims are substantiated. The administration has expanded its authority to exclude ‘bad actors’ from federal health programs and potentially ban them from future participation. CMS Administrator Mehmet Oz highlighted a sharp spike in potentially fraudulent Medicare claims and reiterated that payments are being deferred until the audits are fully satisfied. The move underscores a policy emphasis on rooting out fraud in healthcare funding, even as it draws criticism from state officials who say the withholding disrupts care for vulnerable residents.