Trump Administration Launches Medicaid Fraud Probe in New York

Federal officials demand details on handling of fraud, waste and abuse within 30 days or risk deferred payments.

Published on Mar. 4, 2026

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The Trump administration is expanding its crackdown on state Medicaid programs, launching a fraud probe in New York. Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz cited concerning trends in New York's Medicaid program and demanded that state officials provide details about their handling of fraud, waste and abuse within 30 days or risk deferred payments.

Why it matters

The new investigation is part of an administration-wide initiative to address fraud around the country, which federal officials say is needed to rein in runaway spending and protect taxpayers. New York's soaring Medicaid costs have long been a concern, and the state's Democratic governor has accused the Republican administration of targeting the state for political reasons.

The details

The letter from Oz flagged specific areas of concern, including a high proportion of New York's Medicaid beneficiaries receiving personal care services related to daily living activities. This comes less than a week after the administration halted Medicaid payments to Minnesota over fraud concerns, a move the state has sued over.

  • On March 4, 2026, the Trump administration launched the Medicaid fraud probe in New York.
  • Oz gave New York state officials 30 days to provide details about their handling of fraud, waste and abuse.

The players

Dr. Mehmet Oz

Centers for Medicare and Medicaid Services Administrator and former celebrity heart surgeon.

Kathy Hochul

Democratic governor of New York who has accused the Trump administration of targeting the state for political reasons.

Tim Walz

Democratic governor of Minnesota who called the federal funding freeze in his state "targeted retribution."

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What they’re saying

“Right now, the numbers coming out of New York's Medicaid program don't add up.”

— Dr. Mehmet Oz, Centers for Medicare and Medicaid Services Administrator (Breitbart)

“I will have to stand up and show them the truth and show them the facts, that they're wrong. When there is fraud I will help them fight it.”

— Kathy Hochul, Governor of New York (Breitbart)

“targeted retribution”

— Tim Walz, Governor of Minnesota (Breitbart)

What’s next

The judge in the case will decide in the next 30 days whether to allow the federal government to withhold Medicaid funding from New York.

The takeaway

This probe highlights the ongoing tensions between the Trump administration and Democratic-led states over Medicaid spending and fraud prevention efforts. The outcome could have significant implications for millions of low-income New Yorkers who rely on the state's Medicaid program.