The Donald Trump administration suspends federal funding, halting $60M in grants to New York’s Medicaid Fraud Control Unit after finding the unit had the lowest criminal conviction rate among similar states between 2023 and 2025.US Department of Health and Human Services Inspector General Thomas March Bell says the office flagged slow prosecution, a shift toward civil enforcement and an earlier data error used in prior reviews.The suspension will stay until at least the end of the current federal grant period in September unless New York addresses the deficiencies, and officials say similar freezes hit Hawaii, Minnesota and California.New York Attorney General
Letitia James vows legal action, points to $627M recovered for
Medicaid since 2019 and warns that cutting funds will undermine complex fraud and patient-abuse prosecutions.