Newsom responds to freezing of nearly $900M to California for Medicaid

[00:00:00]We begin our newscast with a new clash between California's Democratic leaders and the Trump administration. US Health and Human Services Secretary Robert F.

[00:00:08]Kennedy Jr. announcing he's putting the brakes on nearly $900 million in Medicare and Medicaid funding for California, citing concerns about possible fraud. But Governor Gavin Newsom calls the move a political payback. 17's Capital Correspondent Aitan Wallace spoke with the governor about this and has more on the war of words between California and the Trump administration as it intensifies.

[00:00:35]>> More than $1 billion.

[00:00:37]That's how much US Health and Human Services Secretary Robert F. Kennedy Jr.

[00:00:42]says the Trump administration is withholding from California and Minnesota in Medicare and Medicaid funding, citing concerns about possible fraud. Of that total, more than 867 million will, for now at least, be withheld from the Golden State alone.

[00:00:57]>> And we have reason to believe that taxpayer money is being misused, especially through fraud.

[00:01:04]We have a duty to stop the payments, demand answers, and then follow the evidence wherever it leads.

[00:01:10]>> Kennedy says he and the Trump administration are specifically concerned about California's In-Home Supportive Services Program or IHSS, the taxpayer-funded program that helps pay for in-home care for eligible seniors and people living with disabilities. Kennedy says the Trump administration is withholding the funding for now until California leaders answer questions about how the money for the program has been spent.

[00:01:35]>> We use traditional financial verification. We used AI, advanced analytics, and other cutting-edge tools to identify suspicious activity and potential fraud.

[00:01:49]If those states want that money, they need to provide documentation that these payments are legitimate.

[00:01:56]>> What's your response?

[00:01:57]>> What they're doing this pure politics.

[00:01:59]You know that, everybody knows it.

[00:02:01]>> Governor Gavin Newsom says his administration has been working with the Trump administration for months to provide documents about the IHSS program, adding the federal government had asked to receive those records by the end of July.

[00:02:14]>> We take fraud seriously.

[00:02:16]We're not politicizing it like these guys. Always have. Open hand, not a closed fist. We've been working with them in good faith.

[00:02:22]>> Newsom argues the IHSS program has significantly reduced the number of patients admitted to costly skilled nursing facilities known as SNFs. He says that in turn has prevented taxpayers from having to front costly SNF-related medical bills.

[00:02:37]>> Saves the taxpayers. It costs about $100,000 more to have someone in a SNF than it does in home in home care.

[00:02:44]>> His message to the Trump administration?

[00:02:46]>> They're emphasizing, prioritizing two states on their hit list, but we nonetheless are working with them in the spirit that you deserve, which is a collaborative one, and we'll continue to try to root out any corruption and fraud that we see.

[00:03:03]And if they see something we're not seeing, uh, we'll celebrate and applaud them.

[00:03:07]>> And Newsom says he expects to send the Trump administration the documents they're asking for by the end of the month. He hopes to have the funding restored by then. Reporting at the state capital, Leyton Wallace, 17 News.