WASHINGTON — Sens. Kirsten Gillibrand (D-NY) and Chuck Schumer (D-NY) are calling on the Trump administration to end its “crusade” of threatening Medicaid funding for blue states over fraud concerns.
In a Thursday letter, Gillibrand, Schumer and other Democratic senators wrote that the heavy focus on fraud is misplaced, given that Medicaid programs are already audited — though some of those programs have shown states being reimbursed don’t have proper safeguards in place.
The freezing of federal funds could also risk “cutting off vital funding for services that seniors, people with disabilities and children rely on to survive and thrive in their communities,” according to the New York Democrats, Sen. Tammy Duckworth (D-Ill.) and Sen. Ron Wyden (D-Ore.).
“There is no acceptable fraud, nor should Congress or the administration tolerate any wasteful spending of taxpayer funding,” the Democratic senators said in their letter to President Trump, Vice President JD Vance, Health and Human Services Secretary Robert F. Kennedy Jr. and Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services.
“Fraud against Medicaid programs has occurred in every state—both red and blue—and robust processes, including Medicaid Fraud Control Units (MFCUs), already exist to identify and address it.”
“It’s quite puzzling why Democrats are so concerned about the Trump administration’s Anti-Fraud Task Force when no one who is rightfully receiving federal benefits is in jeopardy,” said White House spokesman Kush Desai in response.
“Democrats can baselessly fearmonger all they want, but the Task Force isn’t taking the ‘Learing Center’ and other corrupt fraudsters out of the crosshairs.”
Desai was referencing potentially $9 billion in alleged fraud in Minnesota that was highlighted by a YouTuber in a video report earlier this year that found a “Quality Learing Center” taking taxpayers money to ostensibly provide child care — but apparently had no children enrolled.
“Stopping fraud is the bare minimum and it’s exactly what Americans voted for,” said HHS spokesman Andrew Nixon.
“Under the Trump Administration, cracking down on fraud is our responsibility, and it’s outrageous to suggest we should turn a blind eye while taxpayer dollars are being abused, siphoned off, or even sent overseas, instead of helping those that truly need and rely on it.”
In January, the Trump administration halted more than $10 billion in social services and child care funding to New York, California, Minnesota, Illinois and Colorado — but a federal judge blocked the move.
Vance and Oz announced one month later that $259.5 million in Medicaid funds for Minnesota would not be reimbursed due to fraud concerns, demanding a “corrective action plan” from Democratic Gov. Tim Walz within 60 days.
The same month, Oz also accused New York’s $124 billion taxpayer-funded Medicaid program of being riddled with fraud and waste.
“That ends up not only hurting taxpayers, but it hurts the actual people who are vulnerable. … who need these services,” Oz told host John Catsimatidis in a late February interview.
The CMS administrator gave the Empire State 30 days starting March 4 to provide him with evidence that taxpayer-funded Medicaid programs weren’t being defrauded.
“I think it’s offensive that American taxpayers pay into these programs and they are defrauded. And I think in some ways, more significantly than that, it’s really sad that American children who need these services aren’t able to get them because it’s going to fraudsters instead of somebody else,” said Vance at a Feb. 25 press conference announcing the launch of the taskforce.
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“We’re certainly going to make sure that our anti-fraud efforts go after the fraudsters and not after anybody who actually benefits from these services.”
Thursday’s missive from Democrats also shared stories of constituents who they said need Home and Community-Based Services funded by Medicaid.
“Jennifer from Harrison, NY has a young adult son, Philip, who has an intellectual disability and autism. In her words — ‘He is 24 and is living a fulfilling life due to the support he receives from Medicaid HCBS. Philip has received job training in the community, job coaching in the community, participates in the local YMCA, local riding programs, recreation programs and a day program,’” they shared.
“‘He would likely be doing none of these things if it weren’t for Medicaid HCBS. He would be sitting in the house alone. My husband and I both work full time. His siblings are all either in college or working and living on their own, Philip would be sitting in the house staring at the walls.”
