From the Oval Office to Congress, fraud has become one of the loudest rallying cries of the federal government’s healthcare agenda this year.
Minnesota was an early target of the Trump administration’s healthcare fraud crackdown, but the scrutiny has since expanded. A flurry of investigations, task forces and enrollment pauses rooted in Medicaid and Medicare concerns have dominated the first half of 2026.
Fraud enforcement contributes to a Medicaid backdrop fueled by funding cuts and provider tax restrictions. And it seems like every corner of the federal government is joining in on the fraud crackdown.
Here are the developments shaping the federal government’s healthcare fraud enforcement in 2026:
Medicaid money withheld
The agency said in January that it could withhold up to $515 million per quarter from Minnesota’s high-risk programs, which would lead to more than $2 billion held back annually. The state appealed this action.
A CMS announcement in February said the agency was freezing about $260 million in Medicaid funding to Minnesota due to potentially fraudulent claims. The state pushed back, suing this March. An assistant state attorney general said the money should have been released once the state moved forward with its corrective action plan, which was approved later that month. But, in late April, CMS Administrator Mehmet Oz, MD, said the agency is deferring an additional $91 million.
While announcing the initial freeze, CMS also requested feedback on its Comprehensive Regulations to Uncover Suspicious Healthcare initiative, which could inform future rulemaking. While CRUSH is still in its early stages, CMS sought input on the prevention, detection and response to fraud, waste, and abuse across Medicare, Medicaid, the Children’s Health Insurance Program and the ACA marketplace.
On May 13, Vice President J.D. Vance said the administration is withholding $1.3 billion in federal Medicaid reimbursements to California, according to NBC News. Dr. Oz said this is the agency’s largest deferral ever.
Earlier in the year, HHS attempted to freeze $10 billion in social services funding to California and Minnesota, as well as Colorado, Illinois and New York. However, the states sued and ultimately got the freeze blocked. The federal court case is still active, though.
Task force, strike force, another task force
Both the legislative and executive branches have been designating resources to tackle fraud.
The House Committee on Oversight and Government Reform Chairman James Comer, R-Ky., laid out the new Task Force on Defending Constitutional Rights and Exposing Institutional Abuses on May 13, chaired by Rep. Brandon Gill, R-Texas. The task force will focus on “abuse” of social welfare, as well as immigration, “illegal” diversity, equity and inclusion policies, and free speech.
The announcement was paired with a May 12 letter to Ohio’s Medicaid director, informing the state of a task force investigation stemming from concerns about its Home and Community-Based Services waiver program.
The Justice Department has its own initiatives, too. In the weeks leading up to the House announcement, the Justice Department launched the West Coast Health Care Fraud Strike Force, covering Arizona, Nevada and Northern California, according to an April 30 news release. In working with local U.S. attorneys, the strike force will build upon a broader model that led to charges against more than 6,200 defendants. In early April, acting U.S. Attorney General Todd Blanche rolled out the National Fraud Enforcement Division for taxpayer-funded programs.
President Donald Trump signaled these efforts during his State of the Union speech in February and said Mr. Vance would lead “the war on fraud.” In March, President Trump issued an executive order establishing the Task Force to Eliminate Fraud, chaired by Mr. Vance.
Provider enrollment freezes
Medicaid isn’t the sole focus of fraud, waste and abuse initiatives. CMS imposed a six-month nationwide freeze on new Medicare enrollments for hospices and home health agencies, the agency said May 13. This trails a six-month moratorium on new Medicare enrollments for some durable medical equipment, prosthetics and orthotics suppliers that CMS established in February. These suppliers have historically signaled red flags to CMS: The agency said it halted more than $1.5 billion in suspected fraudulent billing last year.
At the beginning of the year, CMS specifically directed Minnesota to pause provider enrollment across 13 high-risk Medicaid services, which was expected to last at least half of the year.
Provider audits
Different parts of the federal government have been contacting states, seeking documentation to back up Medicaid programs and providers.
Dr. Oz shared letters sent to a handful of states in the administration’s own Medicaid probe, requesting information on program integrity. The Republican-controlled House Committee on Energy and Commerce also sent letters to states. While most of those states are under Democratic leadership, Republican-led states were not immune. The committee’s letters specifically asked about audit efforts and provider sanctions.
In April, CMS required all 50 states to audit their Medicaid providers. The two-year provider revalidation strategies should focus on “high-risk providers,” including those without a National Provider Identification number. States have until May 23 to submit detailed plans, and some have expressed optimism in meeting the deadline.
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