Sean JamesMay 13th, 2026, 3:24 pm

Vice President JD Vance announced on Wednesday he is deferring $1.3 billion in Medicaid reimbursements for California over concerns “fraudsters” have manipulated the state’s hospice and other health programs.

“The simple reason is because the state of California has not taken fraud very seriously,” Vance said during a press conference.

Vance said both the California taxpayer and the American taxpayer in every other part of the country has been “defrauded because California isn’t taking the program seriously.”

The vice president said another widespread scam in The Golden State is medical providers prescribing unnecessary prescriptions.

“You assume that your doctor is doing the right thing. But these fraudulent health care providers are getting rich by giving people medications they don’t even need,” Vance said. “It’s a defrauding of the American taxpayer.”

Vance’s announcement comes after his anti-fraud task force has been looking into schemes allegedly taking advantage of the government. The press conference comes a few weeks after the administration announced 447 hospice facilities and 23 home health agencies were suspended for fraudulent billing, as the New York Post reported.

The Trump Administration previously halted $250 million in Medicaid funds for Minnesota over similar concerns the state’s health system is being wrecked by schemers. Federal prosecutors claimed late last year that more than $9 billion in taxpayer dough in Minnesota across a variety of government programs.

He added, “You have had effectively free rein from the government of Hawaii to commit as much fraud as you want. That is a complete disgrace.”

Watch above via Fox News.

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