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Vance turns up heat on states with federal cash threat over Medicaid fraud crackdown
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Vice President JD Vance warned Wednesday that states could lose federal funding if they fail to aggressively pursue Medicaid fraud, escalating the Trump administration’s pressure campaign on governors and state Medicaid officials.
«We are sending letters that will require them to show that they are effectively and aggressively prosecuting Medicaid fraud in their states. And if they do not, if they do not aggressively prosecute Medicaid fraud, we are going to turn off the money that goes to these anti-fraud units,» said Vance during a fraud press conference on Wednesday.
Vance said the federal government has provided states with «billions of dollars» for Medicaid Fraud Control Units and warned that funding could be cut off if states fail to comply with the crackdown. He pointed to states that have received billions of dollars in federal funding to protect against fraud, but have yet to produce a conviction or indictment.
The warning came as the administration announced it is deferring $1.3 billion in Medicaid reimbursements from California, with Vance accusing the state of failing to take fraud seriously. California officials have disputed the administration’s claims.
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Vance says anti-fraud funding will be cut to states that don’t respond to Medicaid letters. (Chip Somodevilla/Getty Images)
«We’re announcing that the federal government is deferring $1.3 billion in Medicaid reimbursements from the state of California. And the simple reason is because the state of California has not taken fraud very seriously,» Vance added.
Vance said that Ohio, a red state, and Maryland, a blue state, have been good examples of states they have been working with that are taking the «fraud seriously.»
Ohio governor Mike DeWine issued a press release on the same day announcing a series of new measures his state is taking to crackdown on suspected fraud, including proposing a six-month moratorium on new home healthcare and hospice providers enrolling in Medicaid.
As for other states, Vance pointed to a handful of Democrat-led jurisdictions for not tackling the fraud scandals more aggressively.
«This does not have to be a red state or a blue state issue. This is just basic good government. However, states like California, states like Hawaii, states like New York have completely not taken the fraud issue seriously in the Medicaid program and so for those states that refuse to get serious about fraud, we are going to turn off that anti-fraud money,» said Vance.
VANCE ANTI-FRAUD TASK FORCE SUSPENDS 221 CALIFORNIA HOSPICE AND HEALTHCARE PROVIDERS SO FAR
Vice President JD Vance hosted the first meeting of The Task Force To Eliminate Fraud on March 27. The task force has suspended hundreds of hospices suspected of fraud in Los Angeles alone. (Shawn Thew/EPA/Bloomberg via Getty Images)
He continued that if states do not take the fraud crackdown seriously, other resources within their Medicaid programs could be turned off too.
«We don’t want to turn off any money. What we want to do is ensure that people are taking fraud seriously. We want to protect Medicaid,» said Vance. «We want to protect Medicare, but we can’t do that if the states that are administering those programs are allowing those programs to be fleeced by fraudsters.»
READ: DR. OZ PUTS ALL 50 GOVERNORS ON NOTICE OVER BILLIONS LOST TO MEDICAID FRAUD
Oz previously gave governors and state Medicaid leaders 10 business days on April 23 to tell CMS whether they will commit to conducting a swift «revalidation» of high-risk Medicaid providers and provide a proposed timetable, Fox News Digital exclusively reported at the time, alongside a separate 30-day deadline for a broader provider-revalidation strategy, escalating federal pressure on states to tighten anti-fraud enforcement.
«While the factors contributing to fraud are multifaceted and require a comprehensive approach to address, a revalidation process for high-risk providers will immediately deter criminal actors from continuing their fraud schemes, as the federal and state governments closely review and scrutinize the qualifications of providers to suspend or terminate clearly abusive actors from the program,» Oz wrote in a letter.
«If they do not aggressively prosecute Medicaid fraud, we are going to turn off the money that goes to these anti-fraud units,» said Vance. (Photo by Heather Diehl/Getty Images)
The letters targeted providers at «high risk of waste, fraud, abuse, and corruption,» particularly those with «less rigorous enrollment and billing requirements,» with CMS directing states to include any provider operating without a National Provider Identifier.
A second letter was also sent to each state Medicaid director reiterating the call for a revalidation strategy tailored to each state.
«Our analysis of national trends strongly suggests a persistent and growing Medicaid threat posed by sophisticated actors knowingly exploiting these complex systems for financial gain,» Oz wrote.
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Fox News Digital reached out to the office of the vice president and CMS for additional comment.
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Andy Burnham, the former Greater Manchester mayor who has frequently criticized President Donald Trump, is poised to become the United Kingdom’s next prime minister after emerging as the only candidate to replace outgoing Labour leader Keir Starmer.
Burnham, 56, received nominations from 322 of Labour’s 403 Members of Parliament on the first day of the leadership process, far surpassing the 81 required to enter the contest and leaving potential rivals with virtually no path to qualify.
He is expected to be formally confirmed as Labour leader Friday and appointed prime minister by King Charles III on Monday after Starmer’s resignation.
Britain’s parliamentary system allows the governing party to replace its leader — and therefore the prime minister — without holding a national election. The next nationwide election does not have to be held until 2029.
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Greater Manchester Mayor Andy Burnham of the Labour Party reacts after being declared the winner in the by-election at The Edge where votes were being counted on June 19, 2026, in Wigan, England. (Ryan Jenkinson/Getty Images)
Burnham’s rapid path to Downing Street is drawing criticism from political opponents and foreign policy analysts who say he has not faced the scrutiny that would normally accompany either a competitive party leadership race or a general election campaign.
«Andy Burnham is the least scrutinized incoming U.K. Prime Minister of recent times,» Alan Mendoza, executive director of the London-based Henry Jackson Society, told Fox News Digital.
«He has faced neither a general election nor an internal party leadership debate in order to establish his positions for wider consumption,» Mendoza said. «He wasn’t even a candidate at the last general election.»
Burnham did, however, win 54.8% of the vote in June’s Makerfield parliamentary by-election, defeating Reform UK’s candidate and returning to the House of Commons after nearly a decade away. Before returning to Parliament, he had been directly elected mayor of Greater Manchester three times.
Reform UK leader Nigel Farage argued in a previous interview with Fox News Digital that Burnham should seek a new national mandate.
«The public are tired of the game of musical chairs that’s been taking place in 10 Downing Street over the last decade,» Farage said.
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Reform UK leader Nigel Farage speaks during a news conference in Westminster, United Kingdom, June 10, 2025. (Thomas Krych/Anadolu via Getty Images)
«Mr. Burnham will come in, he will have no mandate,» he added. «I don’t even know what his policies are. Literally, I don’t. So, I think for all of those reasons, there ought to be a general election and a fresh mandate.»
Farage made the comments before resigning his parliamentary seat this month to trigger an Aug. 13 by-election in Clacton, where he plans to run again. Farage said he wanted voters to judge him amid parliamentary scrutiny over allegations involving gifts from wealthy supporters. He has denied wrongdoing. Police are separately investigating donations made to Reform UK, but no arrests have been announced.
Who is Andy Burnham?
Burnham grew up in north-west England between Liverpool and Manchester. The son of a British Telecom engineer and a receptionist, he joined the Labour Party as a teenager, studied at Cambridge University and was first elected to Parliament in 2001, according to The Associated Press.
He rose through Labour’s ranks during the governments of Tony Blair and Gordon Brown and served in several senior positions, including as culture secretary and health secretary.
Burnham ran unsuccessfully for the Labour leadership in 2010 and again in 2015. He left Parliament in 2017 after winning election as mayor of Greater Manchester, a regional position he used to build a national political profile.
A British Union flag flies from a souvenir stall near the Houses of Parliament in London, U.K., Oct. 27, 2025. (Jason Alden/Bloomberg via Getty Images)
As mayor, Burnham promoted greater regional control over transportation and public services. His administration brought Greater Manchester’s fragmented bus system under public control as part of the Bee Network, a regional transportation project that became one of his signature achievements.
He also became closely associated with the campaign for accountability over the 1989 Hillsborough stadium disaster, in which 97 Liverpool soccer fans were killed. Burnham supported victims’ families in their long-running effort to expose police failures and rebut false accusations originally directed at supporters.
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British Prime Minister Keir Starmer announces the timeline for his resignation after Andy Burnham’s decisive victory last week in the Makerfield by-election outside 10 Downing Street, in London, Britain, June 22, 2026. (Reuters/Jack Taylor )
What has Andy Burnham said about President Trump?
Burnham has repeatedly criticized President Donald Trump, accusing him of contributing to global instability while warning that Britain risks importing the polarization of American politics. In a 2025 interview with The London Economic, Burnham compared Trump’s return to office to the turmoil caused in Britain by former Prime Minister Liz Truss.
«The instability that Liz Truss brought to Britain, I think Trump is bringing to the U.S. and the world,» Burnham said in the interview. He also described several of Trump’s decisions, including his approach to the Russia-Ukraine war, as «out of order.»
President Trump and King Charles shared a laugh outside the White House ahead of a state dinner. (Henry Nicholls/AFP via Getty Images)
Burnham’s criticism of Trump dates back to the president’s first election in 2016. After Trump’s victory, Burnham described some of his rhetoric as «deeply troubling» but argued that politicians on the left should examine why working-class voters had turned to him rather than simply blaming the electorate.
«We have to look closer to home,» Burnham said, according to The Guardian.
His language became sharper following the Jan. 6, 2021, riot at the U.S. Capitol. As the attack unfolded, Burnham wrote on X that «any UK politician who gave Trump the time of day should be ashamed right now.»
More recently, during his Makerfield parliamentary campaign, Burnham warned that Britain was moving toward «the politics of the United States of America,» which he described as «a polarized, poisonous politics where people in communities don’t work together anymore.»
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Despite those attacks, Burnham has stopped short of advocating a rupture with Washington. According to Time, he supported Starmer’s effort to maintain a working relationship with Trump, while arguing that Britain must be prepared to disagree with the United States.
«Obviously, the relationship is important to the U.K., but not to the point where we just go along with anything they say,» Burnham said.
Trump has already responded dismissively to the likely incoming British leader. Asked in June what he knew about Burnham, Trump said, «I don’t know, I think I see that he was, I guess, the mayor of a town.» Trump added that he had heard Burnham was «extremely liberal» and suggested that he would oppose expanded North Sea oil drilling, before declaring that «the U.K. is dying,» according ton Reuters.
What are Andy Burnham’s political views?
Burnham is generally regarded as being to the left of Starmer. He has said he wants to take what he calls «Manchesterism» nationwide, describing an approach that places «people and place before party» and transfers greater attention and authority from London to regions that have historically received less investment.
He has emphasized infrastructure, housing, transportation and regional economic development, while arguing against what he calls «trickle-down economics.» The Associated Press reported that his priorities have also included vocational education, youth employment, lower energy bills and cheaper rail travel.
Mendoza said that Burnham’s past positions and recent statements suggest he would move the British government further to the left.
«What we can be certain of is that he will be looking to impose a fairly radical left-wing agenda for the country based on his past beliefs and recent pronouncements,» Mendoza said.
«In no particular order, these include introduction of wealth taxes, changes to the electoral system, a vast expansion of social housing and attacks on hitherto allies of the U.K. like Israel.»
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Pro-Palestinian protesters hold a banner and chant at at anti-Israel protest in London Dec. 9 2023., (Andy Soloman/UCG/Universal Images Group via Getty Images)
Burnham has sought to counter concerns about his limited recent national security experience.
He has pledged continuity in Britain’s commitments to NATO, its nuclear deterrent, the United States and Ukraine, according to The Associated Press.
He has also called for Britain to rebuild its military capabilities and domestic defense industry in response to what he described as an increasingly dangerous international environment.
On the war in Gaza, Burnham has criticized Labour’s earlier response and argued that the party was too slow to call for a ceasefire. The Associated Press reported that he has raised the possibility of additional sanctions and trade restrictions involving goods linked to Israeli settlements. Burnham has also condemned Hamas’ Oct. 7, 2023, terrorist attack against Israel.
Burnham has not served in Britain’s national government since 2010 and spent almost a decade outside Parliament, meaning his record is far more developed on domestic and regional policy than on current foreign policy and national security questions.
When could Britain hold a general election?
Burnham would not be required to call an immediate general election. Labour won a large parliamentary majority under Starmer in July 2024, allowing the party to remain in power until 2029 unless Burnham decides to seek an earlier mandate.
Mendoza predicted that Burnham could attempt to capitalize on the momentum surrounding his arrival at Downing Street.
«As he is never likelier to be more popular than on day one of his premiership, we should also be on the watch for his calling of an early general election in order to capitalize on this unique moment,» Mendoza said.
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Britain’s Labour Party candidate Andy Burnham speaks to supporters after the Makerfield by-election in Ashton in Makerfield, England, June 19, 2026. (Jon Super/AP)
Burnham would inherit an economy facing weak growth, pressure on public finances, strained health and welfare services and continuing concern over the cost of living.
He would also become Britain’s seventh prime minister in just over a decade, reflecting the rapid political turnover at Downing Street since the country’s 2016 vote to leave the European Union.
andy burnham, united kingdom, europe, donald trump
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Lindy Li, a former top Democratic fundraiser, believes President Joe Biden is only doing himself a disservice by promising the public another explanation of why he decided to run for re-election in 2024 despite mounting concerns about his age and cognitive performance.
In her view, Biden’s upcoming memoir, «Promise Me, America,» will only serve to reopen painful wounds that Democrats have struggled to move past since the 2024 election loss. In a way, she believes the book is a bit of a microcosm of Biden’s presidency.
«They’re thinking, ‘Why can’t you just shut the f— up?’ Prior to me leaving the party, they wanted nothing to do with this guy. It was so bad that when, finally, Biden exited on July 21, there was no goodbye party other than a staffer one in the Rose Garden. There was nothing,» Li said.
«Jill has him writing books that no one wants to read instead of fully enjoying his retirement,» Li said, referring to Jill Biden, the former first lady.
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Former President Biden was dogged throughout his term by rumors of his purported cognitive decline. (Kevin Dietsch/Getty Images)
«Just like she had him out running for president — a presidency that no one wanted, not even Democrats — instead of enjoying his retirement. He should have been in retirement 10, 20 years ago, but they need the money.»
Biden described his upcoming book in a post to X Wednesday morning.
«It’s about the challenges we face as a nation. About the decisions I made and why I made them,» Biden said, igniting mockery on social media. «It’s about why I chose to run for reelection and why I chose to step aside.»
«The first lie of Joe Biden’s book launch: ‘I’ve written a book,’» conservative communicator Steve Guest wrote.
«Joe Biden couldn’t sign his own pardons. Now he’s ‘written’ a book, which Democrats forced him to release after the midterms so he wouldn’t be in the news to remind people how bad he was,» wrote Outkick founder Clay Travis. «Who in the world is buying this book?»
«Who do we think wrote this book,» Daily Wire editor-in-chief Brent Scher wondered.
«Did the autopen write this too,» Missouri Republican Rep. Jason Smith questioned.
Li, who is publishing a new book of her own, «Unburdened,» later this year, was privy to many of the party’s internal discussions, research and panic behind the scenes, which indicated Biden enjoyed only shaky support even among his own camp long before he ultimately dropped out of the 2024 election.
BIDEN BOOK LAUNCH BACKFIRES AS CRITICS MOCK ‘AUTOPEN’ PRESIDENT INTO OBLIVION
Lindy Li, a former Democratic fundraiser, poses for a picture with former President Joe Biden at a 2023 campaign event. (Lindy Li)
In light of what she knows, Li doubts there is a way for Biden to spin his exit that won’t do further harm to his own image, an image his campaign went to great lengths to protect.
Li recalled how the Biden campaign confiscated her phone at a 2023 event.
«The [Democratic National Committee] was routinely confiscating the phones of top donors with social media followings,» Li said, referring to a party fundraising and campaign group.
«They took away my phone because they knew I was a prolific tweeter. And I posted something on Instagram that night, and a finance director from the DNC called me at around 10 or 11 that same night to instruct me to delete everything from Instagram about Biden that I posted that day.
«The reason is because [Biden] seemed infirm. He seemed weak.»
DEMOCRATS’ MIDTERM PUSH CLOUDED BY INFIGHTING OVER PARTY KEEPING 2024 AUTOPSY UNDER WRAPS
Lindy Li, a former Democratic fundraiser, and former President Joe Biden (Lindy Li; Sean Rayford/Getty Images)
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Now on this side of his presidency, Li believes he will further aggravate Democrats who have wanted to move past the 2024 election and reignite questions of why Biden wasn’t asked to step aside sooner.
«It’s very clear they were trying to hide the fact that instead of having a candidate they could be proud of, they were busy hiding a candidate that they were deeply ashamed of,» she added.
Fox News’ Ashley DiMella contributed to this report
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