Feds suspend $60M in Medicaid fraud funding for New York
Federal officials said the unit had too few indictments and convictions, and the freeze could end early if New York corrects the problems.
- The federal government suspended $60 million in funding for New York's Medicaid Fraud Control Unit due to poor criminal enforcement and leadership issues that caused investigation delays and backlogs.
- From 2023 to 2025, New York's Medicaid Fraud Control Unit had only 53 criminal fraud convictions, the lowest among large states, with fewer than 10 indictments in four of the past five years.
- Attorney General Letitia James blamed the funding suspension on political targeting while highlighting the state's recovery of over $627 million for Medicaid beneficiaries and recent fraud prosecutions.
- Republicans criticized the unit's ineffectiveness under current leadership, noting a significant decline in indictments and alleging a deprioritization of criminal fraud cases in favor of civil cases.
9 Articles
9 Articles
Trump Administration Freezes $60M in Federal Funding for Letitia James’ Medicaid Fraud Unit
Every courthouse has one — the attorney who’s all press conference and no case file. Letitia James, New York’s attorney general, built a national brand on one thing above all else: going after Donald Trump. She campaigned on it before she even took office. She did the cable news hits, held the pressers, and soaked...
Letitia James hammered after NY Medicaid fraud unit funding frozen over ineffective enforcement
Letitia James faces criticism after the HHS Office of Inspector General suspended federal funding for New York's Medicaid Fraud Control Unit over poor criminal enforcement.
Feds suspend $60M in Medicaid fraud funding for New York
The federal government has suspended funding for New York's Medicaid Fraud Control Unit, accusing the state agency of doing a bad job with criminal enforcement, while state officials argue that the move is a political attack and that the unit has recovered hundreds of millions of dollars.

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