Trump administration cuts off funding to New York fraud unit

The Trump administration announced Tuesday that it is cutting off federal funding for New York’s Medicaid Fraud Control Unit, arguing the office has failed to adequately prosecute Medicaid fraud despite overseeing one of the nation’s largest programs.

Trump administration cuts off funding to New York fraud unit

TL;DR

  • The Trump administration has cut federal funding for New York's Medicaid Fraud Control Unit.
  • HHS officials stated the unit significantly underperformed, securing few criminal indictments compared to similar offices.
  • New York Attorney General Letitia James claims her office has recovered over $627 million in Medicaid fraud cases.
  • The funding cut is part of the Trump administration's intensified focus on combating federal fraud.
  • New York is the second state to lose this funding this year, following Hawaii.