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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.
HOUSE GOP LAUNCHES NEW TASK FORCE, PROBES ALLEGED $250B MEDICAID FRAUD IN OHIO
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.
jd vance, health care executive, ohio, governors, mike dewine
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Cae la verja que separaba España de la colonia británica de Gibraltar: festejos y emoción tras un acuerdo histórico

“Zona de prosperidad compartida”
Gibraltar en Schengen
El eterno reclamo español
Ya no habrá que esquivar las horas pico
Control aduanero
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Ex-Dem fundraiser torches Biden as book launch implodes: ‘No one wants to read’

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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.
EX-DEM INSIDER REVEALS SHE WILL EXPOSE DEMOCRATS WHO COVERED UP BIDEN’S COGNITIVE DECLINE IN NEW BOOK
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
politics, biden pushed out, joe biden
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WATCH: Russian soldier thrown through air as Soviet-era helicopter gun spins out of control

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President Donald Trump said he believes Russian President Vladimir Putin is ready to reach an agreement to end the war in Ukraine, even as Moscow warned Wednesday that Western troops deployed to enforce any eventual peace deal would become Russian military targets.
«I say, ‘Vladimir, it’s time for you to stop. It’s time for this war to end,’» Trump told Fox News chief foreign correspondent Trey Yingst in an interview released Tuesday.
Trump said he believed Putin was «ready to make a deal» to end the fighting.
ANOTHER NATO ALLY SIGNS ONTO EUROPEAN NUCLEAR UMBRELLA AS CONTINENT BOOSTS SELF-DEFENSE
Meanwhile, fighting continued across Ukraine and Russian-occupied territory.
The intensifying drone war has forced both militaries to search for additional ways to intercept unmanned aircraft, sometimes using weapons designed decades before modern drones emerged.
A video supplied by East2West shows a Russian soldier apparently losing control of a Soviet-era YakB-12.7 rotary machine gun mounted on an improvised ground platform.
Russian President Vladimir Putin and President Donald Trump meet in 2019, before their relationship began to sour. (Brendan Smialowski/AFP via Getty Images)
The weapon begins spinning violently, dragging the service member around before throwing him several yards from the mounting. Another soldier ducks as the gun swings in his direction.
East2West reported that no one was injured, though Fox News Digital has not independently verified the location, date or circumstances of the footage.
The four-barrel machine gun was originally developed for use aboard the Soviet-designed Mi-24 Hind attack helicopter. Russian forces have reportedly attempted to repurpose such weapons as ground-based defenses against Ukrainian drones, East2West news reported.
TRUMP SAYS US WILL LET UKRAINE MAKE PATRIOT MISSILES IN MAJOR POLICY SHIFT

An explosion lights up the sky over the city during a Russian missile and drone strike amid Russia’s attack on Ukraine in Kyiv July 2, 2026. (Gleb Garanich/Reuters)
On Wednesday, Russian Foreign Ministry spokeswoman Maria Zakharova said any multinational force deployed by Ukraine’s allies after a ceasefire would be unacceptable to Moscow.
«We would regard such units as legitimate military targets,» Zakharova said, according to a Reuters report published Wednesday.
Members of the Western «coalition of the willing» reaffirmed at a meeting in Paris this week that they intend to deploy a multinational force after hostilities end. The proposed force would seek to reassure Ukraine and help Kyiv rebuild its military.
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Ukraine’s military said Wednesday that its forces struck the Balaklava thermal power station in Russian-occupied Crimea, a facility that accounts for nearly half of the peninsula’s electricity generation, according to Reuters.
Russia, meanwhile, launched another major drone and missile attack against Ukraine’s southern Odesa region, killing three people, regional Governor Oleh Kiper said. He said civilian, industrial and port infrastructure had been targeted during five consecutive days of Russian attacks.

Emergency services personnel work to extinguish a vehicle fire after a Russian drone attack in the Kyiv region, Ukraine, May 5, 2026. (Ukrainian Emergency Service/AP)
Ukrainian President Volodymyr Zelenskyy also said Wednesday that Ukraine expects to develop the technical capability to manufacture missiles for U.S.-made Patriot air-defense systems by the end of 2026.
Reuters contributed to this story.
russia, ukraine, vladimir putin, world
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