The Justice Department filed a lawsuit on June 16, 2026 against New York health officials, along with the company that oversees the state’s multibillion-dollar home care initiative, alleging serious misconduct in the awarding and administration of the program. Federal prosecutors named the New York State Department of Health, the state’s Medicaid director, and Public Partnerships LLC (PPL) in a complaint that was filed in a federal court located in Brooklyn.
Prosecutors allege that state officials meddled with the outcome of the bidding process in order to steer the contract to PPL despite concerns surrounding the company’s proposal. The complaint also says that New York failed to take action after discovering PPL intended to deviate from commitments that were made during the procurement process.
“New York’s backroom deal with PPL has cost taxpayers millions of dollars and cast countless Medicaid patients to the curb,” Assistant Attorney General Colin M. McDonald for the Justice Department’s National Fraud Enforcement Division went on to say. “Today’s action is the latest reminder that the Justice Department is mobilizing every available tool to protect taxpayer-funded programs from fraud and corruption.”
“One of the Justice Department’s key priorities is protecting the public fisc and delivering savings to American taxpayers,” Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division explained, according to a report from Breitbart News. Shumate then said, “New York’s failure to police a favored vendor that unlawfully siphoned millions of dollars of Medicaid funding is egregious and betrays the public trust.”
“The Justice Department is acting to ensure that federal laws regarding truthful statements and fair dealing in federal health care programs are upheld and to prevent additional harm from being exacted against the public by Public Partnerships LLC and New York,” he added. The lawsuit is calling for the court to intervene and halt what federal prosecutors referred to as widespread misconduct in the administration of New York’s $10 billion CDPAP program.
For those who are unfamiliar with the program, CDPAP is a Medicaid-funded initiative that allows individuals who have disabilities or serious medical conditions to get medical care from nonprofessional caregivers, such as friends or family members. In 2024, lawmakers in New York approved a plan to restructure the system and replace hundreds of intermediary administrators with just one statewide contractor.
The complaint alleges that PPL generated millions of dollars in unauthorized profits by keeping a portion of Medicaid funds that were intended to be used to cover the cost of direct care services. Federal prosecutors also say that the company inflated billable rates after it took over the program and continued to collect payments that were not allowed under the contract.
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Many of the comments on the Breitbart story shared their gratitude to the Trump administration for finally taking healthcare fraud seriously and working to protect taxpayers. “Thank you Trump administration! Keep squeezing these little leftist weasels. Democrat politicians are nothing more than common thieves,” one individual wrote. Another simply stated, “The thing Democrats hold dearest is their scams.”