Hundreds of millions of dollars — and possibly billions — for Minnesota's Medicaid program are in limbo as part of the Trump administration's crackdown on fraud.
Unprecedented: Health care policy experts say the threats to Medicaid funding are unprecedented — going far beyond the typical steps to address fraud and at a scale that could disrupt services for patients.
MN could be a test case: While Minnesota has been under unique federal pressure, the Centers for Medicare and Medicaid Services has also sent letters to California, New York and Maine, raising concerns about potential fraud in each of the state's Medicaid programs. A Medicaid policy expert, who also served as a senior adviser to CMS during the Obama administration, said this step could be an early warning signal for deferring or withholding federal Medicaid funding in those states.
Read on... for how CMS has halted federal funds in Minnesota's program, and what it means for other states.
When Sarah Lindbo's 14-year-old daughter Greta is thriving, she is playful, engaged and not in pain.
Greta, who has cerebral palsy, requires a range of supports to get to that point. That includes doctors, medical equipment, prescriptions, a paraprofessional at school and a care assistant at home. Many of these services depend on Medicaid.
" Medicaid makes a huge impact in our day-to-day life," Lindbo said. "It is the foundation of what gives Greta her experience at school and in our community and our family."
But lately, Lindbo has been nervous. She and her family live in Minnesota where hundreds of millions of dollars — and possibly billions — for the state's Medicaid program are in limbo as part of the Trump administration's crackdown on fraud. It came after federal prosecutors last year alleged that billions may have been stolen from Minnesota's Medicaid program over the years and charged a number of people with Medicaid fraud.
Dr. Mehmet Oz, who oversees the Centers for Medicare and Medicaid Services, has argued that widespread fraud has persisted for too long, hurting both taxpayers and those who rely most on the program.
"This is not a problem with the people of Minnesota. It's a problem with the leadership of Minnesota and other states who do not take Medicaid preservation seriously," he said at a press conference on Feb. 25.
But health care policy experts say the threats to Medicaid funding are unprecedented — going far beyond the typical steps to address fraud and at a scale that could disrupt services for patients.
"If this becomes the framework for addressing fraud, it's really destabilizing," said Allie Gardner, a health policy researcher at the Center on Budget and Policy Priorities, a progressive think tank. " It risks the coverage and care for those that depend on the program."
CMS declined to comment, citing pending litigation. Earlier this month, Minnesota filed a federal lawsuit over a portion of the frozen Medicaid funds. In a press release announcing the suit, Minnesota Attorney General Keith Ellison asserted that the state has taken a concerted effort against fraud and the federal government's "cut first" approach risks care for Minnesotans.
"The Trump Administration's M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all," he said.
Breaking down what's happening to Minnesota's Medicaid funds
Administrator for the Centers for Medicare & Medicaid Services Dr. Mehmet Oz speaks during a news conference on efforts to combat fraud, at the White House on Feb. 25, 2026.
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Tom Brenner
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AP
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The federal government partners with states to fund Medicaid. But after widespread fraud allegations surfaced in Minnesota, CMS announced it would halt federal funds for the state's program in two ways — retroactively and going forward.
The retroactive move is called deferral. In February, CMS said it would delay reimbursing about $259.5 million that the state spent on Medicaid last summer, citing concerns about potential fraud and coverage for patients without legal status, who are not eligible for Medicaid.
The federal agency asked the state to prove that funds were spent lawfully across 14 categories of providers which Minnesota had previously identified as "high risk" for fraud. (Last year, the state shut down one of the programs, Housing Stabilization Services, citing widespread fraud.)
Deferrals are a standard oversight tool for CMS but they are typically narrow in scope — like a review of a specific set of claims, according to Gardner. When deferrals are too broad or vague, it can be more difficult and time-consuming for the state to gather the proper evidence and respond to the issues, she said.
"The state kind of has to shoot in the dark in responding to CMS on what documentation they need to provide," Gardner said. "What is the scope of information needed? Do they need documentation to justify every single claim?"
The second move is known as withholding. Here, the federal government is saying it will hold off payments for future care.
That decision came after CMS asked Minnesota in December for a plan on how it will prevent future fraud. The state later submitted a proposal with a list of actions, including strengthening certain review processes and pausing provider enrollment in the "high risk" programs.But in January, Dr. Oz announced that the state's plan was "deeply insufficient," and therefore, CMS intended to withhold about $2 billion annually in future federal funding.
According to Gardner, this kind of move is rare, especially with an amount this large. Using both deferral and withholding simultaneously puts Minnesota at risk of a massive and sudden financial hit.
" CMS' use of both of these processes to go after the same services at the same time — that's really concerning," she said. "Especially given the significant financial consequences to the state and providers as well as, to the care and coverage of Medicaid enrollees."
Before CMS can start withholding future funds, the state has an opportunity for a hearing. If CMS decides not to release the funds in deferral, the state also has a chance to appeal. Minnesota's lawsuit pertains to a bulk of the money stuck in deferral.
Minnesota could be a test case for other states
Attorneys representing CMS have argued the $259.5 million in deferral involves services that were already paid for by the state, which only represent about 7% of quarterly federal funds owed to Minnesota.
But Andy Schneider, a Medicaid policy expert with the Georgetown Center for Children and Families, said the state likely planned its budget with the expectation of receiving those reimbursement funds.
" The federal government has just told the state, you have $259 million less to work with for the services that are happening now," he said. "That's a lot in a short period of time."
The potential loss of $2 billion in future funding would be even more challenging for the state to manage, according to Schneider. It could slow payments to providers and delay the enrollment of new patients. It could also force the state to cut reimbursement rates and limit the number of services it covers, he added.
While Minnesota has been under unique federal pressure, CMS has also sent letters to California, New York and Maine, raising concerns about potential fraud in each of the state's Medicaid programs.
Schneider, who also served as a senior adviser to CMS during the Obama administration, said this step could be an early warning signal for deferring or withholding federal Medicaid funding in those states.
Earlier this month, the House Committee on Energy and Commerce launched investigations over Medicaid fraud in 10 states: California, Colorado, Massachusetts, Maine, Nebraska, New York, Oregon, Pennsylvania, Vermont and Washington. All but Nebraska and Vermont are led by Democratic governors.
Schneider agrees that it's important to root out bad actors exploiting Medicaid, but he argues that federal-state collaboration is essential to tackling fraud concerns while not jeopardizing people's access to care.
" If they were really worried about it, they would continue to do what we did in the past, which is to work cooperatively with the state," he said.
When Lindbo first heard about the potential threats to Medicaid, she got emotional. Although her family has private health insurance, Lindbo said it does not cover many of her daughter's critical services, such as the school paraprofessional who helps Greta get ready for class and assists Greta if she has a seizure.
According to Lindbo, any disruption to Greta's care could undo the progress she has made.
" Regression is real," she said. "That would just be so heartbreaking because she's worked really hard. People who work with her work really hard and those systems need to stay in place so she can continue to grow."
Copyright 2026 NPR
Jorge "Coqui" H. Rodriguez speaks at a press conference outside Dodger Stadium on Wednesady to demand the Dodgers not visit the White House following their 2025 World Series win.
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J.W. Hendricks
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The LA Local
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Topline:
Less than 24 hours before season opener, longtime Dodgers fans demand the team divest from immigration detention centers and decline the White House visit.
More details: More than 30 people joined Richard Santillan on Wednesday morning for a press conference held near 1000 Vin Scully Drive to convey a message directly to the team. “We are demanding that the Dodgers stop participating in funding of inhumane treatment of families and do not go to the White House to celebrate with the criminal in chief,” Evelyn Escatiola told the crowd. “Together we have the power to make a change.”
Since 1977, Richard Santillan has been to every Opening Day game at Dodger Stadium.
“The tradition goes from my father, to me, to my children and grandchildren. Some of my best memories are with my father and children here at Dodger Stadium,” Santillan told The LA Local, smiling under the shade of palm trees near the entrance to the ballpark Wednesday morning. He was there to protest the team less than 24 hours before Opening Day.
Santillan, like countless other loyal Dodgers fans, is grappling with his fan identity over the team’s decision to accept an invitation to the White House and owner Mark Walter’s ties to ICE detention facilities.
More than 30 people joined Santillan on Wednesday morning for a press conference held near 1000 Vin Scully Drive to convey a message directly to the team.
“We are demanding the Dodgers stop participating in funding of inhumane treatment of families and do not go to the White House to celebrate with the criminal in chief,” Evelyn Escatiola told the crowd. “Together, we have the power to make a change.”
Escatiola, a former dean of East Los Angeles College and longtime community organizer, urged fans to flex their economic power by “letting the Dodgers know that we do not support repression.”
Jorge “Coqui” Rodriguez, a lifelong Dodgers fan, spoke to the crowd and called on Dodgers ownership to divest from immigration detention centers owned and operated by GEO Group and CoreCivic.
Jorge Coqui H Rodriguez speaks at a press conference outside Dodger Stadium on March 25, 2026, to demand the Dodgers not to visit the White House following their 2025 World Series win.
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J.W. Hendricks
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The LA Local
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In a phone interview a day before the protest, Rodriguez told The LA Local he did not want the Dodgers using his “cheve” or beer money to fund detention centers.
“They can’t take our parking money, our cacahuate money, our cheve money, our Dodger Dog money and invest those funds into corporations that are imprisoning people. It’s wrong,” Rodriguez said.
Rodriguez considers the Dodgers one of the most racially diverse teams and said the players need to support fans at a time when heightened immigration enforcement has become more common across L.A.
The team’s 2025’s visit to the White House drew ire from the largely Latino fan base, citing the Trump administration’s ongoing attacks on immigrants.
The team again came under fire after not releasing a statement on the impacts of ICE raids on its mostly Latino fan base at the height of immigration enforcement last summer. The team later agreed to invest $1 million to support families affected by immigration enforcement.
When he learned the Dodgers were pledging only $1 million to families in need, Rodriguez called the amount a “slap in the face.”
“These guys just bought the Lakers for billions of dollars and they give a million dollars to fight for legal services? That’s a joke,” Rodriguez said. “They need to have a moral backbone and not be investing in those companies.”
According to reporting from the Los Angeles Times, former Dodgers pitcher Clayton Kershawsaid last week that he is looking forward to the trip.
“I went when President [Joe] Biden was in office. I’m going to go when President [Donald] Trump is in office,” Kershaw said. “To me, it’s just about getting to go to the White House. You don’t get that opportunity every day, so I’m excited to go.”
The Dodgers have yet to announce when their planned visit will take place.
Santillan sometimes laments his decision to give up his season tickets in protest of the team. His connection to the stadium and the memories he has made there with family and friends will last a lifetime, he said. On Thursday, he will uphold his tradition and be there for the first pitch of the season, but with a heavy heart.
“It’s a family tradition, but the Dodgers have a lot of work to do,” he said.
Destiny Torres
is LAist's general assignment reporter and brings you the top news you need for the day.
Published March 25, 2026 3:38 PM
The warmer weather and high water flow are causing an early outbreak of black flies in the San Gabriel Valley.
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Courtesy SGV Mosquito and Vector Control District
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Topline:
The warmer weather and high water flow are causing an early outbreak of black flies in the San Gabriel Valley, according to officials.
What are black flies? Black flies are tiny, pesky insects that often get mistaken for mosquitoes. The biting flies breed near foothill communities like Altadena, Azusa, San Dimas and Glendora. They also thrive near flowing water.
What you need to know: Black flies fly in large numbers and long distances. When they bite both humans and pets, they aim around the eyes and the neck. While the bites can be painful, they don’t transmit diseases in L.A. County.
A population spike: Anais Medina Diaz, director of communications at the SGV Mosquito and Vector Control District, told LAist that at this time last year, surveillance traps had single-digit counts of adult black flies, but this year those traps are collecting counts above 500.
So, why is the population growing? Diaz said the surge is unusual for this time of year.
“We are experiencing them now because of the warmer temperatures we've been having,” Diaz said. “And of course, all the water that's going down through the river, we have a high flow of water that is not typical for this time of year.”
What officials are doing: Officials say teams are identifying and treating public sources where black flies can thrive, but that many of these sites are influenced by natural or infrastructure conditions outside their control.
How to protect yourself: Black flies can be hard to avoid outside in dense vegetation, but you can reduce the chance of a bite by:
Wearing loose-fitted clothing that covers the entire body.
Wearing a hat with netting on top.
Spraying on repellent, but check the label. For a repellent to be effective, it needs to have at least 15% DEET, the only active ingredient that works against black flies.
Turning off any water features like fountains for at least 24 hours, especially in foothill communities.
See an uptick in black flies in your area? Here's how to report it
SGV Mosquito and Vector Control District Submit a tip here You can also send a tip to district@sgvmosquito.org (626) 814-9466
Greater Los Angeles Vector Control District Submit a service request here You can also send a service request to info@GLAmosquito.org (562) 944-9656
Orange County Mosquito and Vector Control Submit a report here You can also send a report to ocvcd@ocvector.org (714) 971-2421 or (949) 654-2421
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Robert Garrova
explores the weird and secret bits of SoCal that would excite even the most jaded Angelenos. He also covers mental health.
Published March 25, 2026 3:28 PM
Jeremy Kaplan and Florence at READ Books in Eagle Rock.
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Courtesy Jeremy Kaplan
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Topline:
Local favorite mom and pop shop READ Books in Eagle Rock is facing displacement due to a steep rent hike. The owners say they’re just one of several small businesses along Eagle Rock Boulevard struggling to keep up with lease increases.
The backstory: Over the past 19 years, many in the neighborhood have come to love READ Books for its eclectic collection of used titles and their shop dog Florence.
What happened? The building where Kaplan and his wife Debbie rent was recently sold and the rent increased by more than 130% to $2,805 a month, Kaplan said. He told LAist it was an increase his small business simply could not absorb.
What's next? While he looks for a new spot, Kaplan says he’s forming a coalition of local businesses and activist groups to see what can be done to help other small businesses facing similar displacement. He wants to address the displacement issue for businesses like his, which have made Eagle Rock the distinctive neighborhood that it is today.
Read on... for what small businesses can do.
A local favorite mom-and-pop bookshop in Eagle Rock is facing displacement due to a steep rent hike. The owners say theirs is just one of several small businesses along Eagle Rock Boulevard struggling to keep up with lease increases.
Over the past 19 years, many in the neighborhood have come to love READ Books for its eclectic collection of used titles and shop dog Florence.
Co-owner Jeremy Kaplan said it’s been a delight to grow with the community over the years.
“Like seeing kids come back in, who were in grade school and now they’re in college,” Kaplan said.
But the building where Kaplan and wife Debbie rent was recently sold, and the rent increased by more than 130% to $2,805 a month, Kaplan said. He told LAist it was an increase his small business simply could not absorb.
Kaplan said he originally was given 30 days notice of the rent increase. After some research, assistance from Councilmember Ysabel Jurado’s office and some pro-bono legal help, Kaplan said he pushed back and got the 90-day notice he’s afforded by state law.
California Senate Bill 1103 requires landlords to give businesses with five or less employees 90 days’ notice for rent increases exceeding 10%, among other protections.
Systems Real Estate, the property management company, did not immediately respond to LAist’s request for comment.
What can small businesses do?
Nadia Segura, directing attorney of the Small Business Program at pro bono legal aid non-profit Bet Tzedek said California law does not currently allow for rent control for commercial tenancies.
Outside of the protections under SB 1103, Segura said small businesses like READ Books don’t have much other recourse. And even then, commercial landlords are not required to inform their tenants of their protections under the law.
“There’s still a lot of people that don’t know about SB 1103. And then it’s very sad that they tell them they have these rent increases and within a month they have to leave,” Segura said.
She said her group is seeing steep rent hikes like this for commercial tenants across the city.
“We are seeing this even more with the World Cup coming up, the Olympics coming up. And I will say it was very sad to see that also after the wildfires,” Segura said.
Part of Bet Tzedek’s ongoing work is to advocate for small businesses, working with landlords who are increasing rents to see if they are willing to give business owners longer leases that lock in rents.
While he looks for a new spot, Kaplan says he’s forming a coalition of local businesses and activist groups to see what can be done to help other small businesses facing similar displacement. He wants to address the displacement issue for businesses like his, which have made Eagle Rock the distinctive neighborhood that it is today.
Owl Talk, a longtime Eagle Rock staple selling clothing and accessories in a unit in the same building as READ Books, is facing a “more than double” rent increase, according to a post on their Instagram account.
Kaplan said he’s been in touch with the office of state Assemblywoman Jessica Caloza and wants to explore the possibility of introducing legislation to set up protections for small businesses like his, including rent-control measures or a vacancy tax for landlords. Kaplan said he also reached out to the office of state Sen. Maria Durazo.
By his count, Kaplan said there are about a dozen businesses within surrounding blocks that are at risk of closing their doors or have shuttered due to rent increases or other struggles.
When READ Books was founded during the Great Recession, Kaplan said he knew it was a longshot to open a bookstore at the same time so many were struggling to stay in business.
“It was kind of interesting to be doing something that neighborhoods needed. That was important to me growing up, that was important to my children, that was important to my wife growing up,” Kaplan said.
“And then somebody comes in and says, ‘We’re gonna over double your rent.”
Kavish Harjai
writes about infrastructure that's meant to help us move about the region.
Published March 25, 2026 3:12 PM
A field team member of the Bureau of Street Lighting installs a solar-powered light in Filipinotown.
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Mayor Bass Communications Office
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Topline:
The Los Angeles City Council approved a plan in a 13-1 vote on Tuesday to send ballots to more than half a million property owners asking if they are willing to pay more per year to fortify the city’s streetlight repair budget, most of which has essentially been frozen since the 1990s. The item still requires L.A. Mayor Karen Bass’ signature, but her office confirmed to LAist on Wednesday that she’ll approve it.
Frozen budget: Most of the city’s Bureau of Street Lighting budget comes from an assessment that people who own property illuminated by lights pay on their county property tax bill. The amount people pay depends on the kind of property they own and how much they benefit from lighting. A typical single-family home currently pays $53 annually, and in total, the assessments bring in about $45 million annually for the city to repair and maintain streetlights. Changing the amount the Bureau of Street Lighting gets from the assessment requires a vote among property owners who benefit from the lights.
Ballots: L.A. City Council’s vote gives city staff the green light to prepare and send out those ballots. Miguel Sangalang, who oversees the bureau, said at a committee meeting earlier this month that he expects to send out ballots by April 17. Notices about the ballots will be sent out prior to the ballots themselves.
Near unanimous vote: L.A.City Councilmember Monica Rodriguez was the only “No” vote on Tuesday, saying she wanted to see a more current strategic plan for the bureau. Sangalang said the bureau developed a plan in 2022 that lays out how money will be spent. Councilmember Imelda Padilla was absent for the vote.
Vote count: Votes will be weighted according to the assessment amount. Basically, the more you’re asked to pay yearly to maintain streetlights, the more your vote will count. Ballots received before June 2 will be tabulated by the L.A. City Clerk.
How much more money: According to a report, the amount needed in assessments from property owners to meet the repair and maintenance needs of the city’s streetlighting in the next fiscal year is nearly $112 million.
Use of the money: Sangalang said at a March 11 committee meeting that the extra funds would be used to double the number of staff to handle repairs and procure solar streetlights, which don’t face the threat of copper wire theft. That would all potentially reduce the time it takes to repair simple fixes down to a week. Currently, city residents wait for months to see broken streetlights repaired.The assessment would come with a three-year auditing mechanism.
Topline:
The Los Angeles City Council approved a plan in a 13-1 vote Tuesday to send ballots to more than a half-million property owners asking if they are willing to pay more per year to fortify the city’s streetlight repair budget, most of which essentially has been frozen since the 1990s. The item still requires L.A. Mayor Karen Bass’ signature, but her office confirmed to LAist on Wednesday that she’ll approve it.
Frozen budget: Most of the city’s Bureau of Street Lighting budget comes from an assessment that people who own property illuminated by lights pay on their county property tax bill. The amount people pay depends on the kind of property they own and how much they benefit from lighting. A typical single-family home currently pays $53 annually, and in total, the assessments bring in about $45 million annually for the city to repair and maintain streetlights. Changing the amount the Bureau of Street Lighting gets from the assessment requires a vote among property owners who benefit from the lights.
Ballots: L.A. City Council’s vote gives city staff the green light to prepare and send out those ballots. Miguel Sangalang, who oversees the bureau, said at a committee meeting earlier this month that he expects to send out ballots by April 17. Notices about the ballots will be sent out prior to the ballots themselves.
Near unanimous vote: L.A.City Councilmember Monica Rodriguez was the only “No” vote Tuesday, saying she wanted to see a more current strategic plan for the bureau. Sangalang said the bureau developed a plan in 2022 that lays out how money will be spent. Councilmember Imelda Padilla was absent for the vote.
Vote count: Votes will be weighted according to the assessment amount. Basically, the more you’re asked to pay yearly to maintain streetlights, the more your vote will count. Ballots received before June 2 will be tabulated by the L.A. City Clerk.
How much more money: According to a report, the amount needed in assessments from property owners to meet the repair and maintenance needs of the city’s streetlighting in the next fiscal year is nearly $112 million.
Use of the money: Sangalang said at a March 11 committee meeting that the extra funds would be used to double the number of staff to handle repairs and procure solar streetlights, which don’t face the threat of copper wire theft. That would all potentially reduce the time it takes to repair simple fixes down to a week. Currently, city residents wait for months to see broken streetlights repaired. The assessment would come with a three-year auditing mechanism.