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    Dr. Oz, DOJ Announce Crackdown on California Fraud, Decision to Strip It of $300 Million in Federal Aid

    By Will TannerJanuary 17, 2026Updated:January 17, 2026
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    In an absolutely massive announcement on X, Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz announced that the Trump Administration has discovered massive amounts of Medicaid fraud all over America, with blue states illegally allowing illegal aliens to access the program, and so the Trump Administration is yanking funding. In fact, he revealed that hundreds of millions of dollars of funding are being yanked away from California alone.

    As background, the Trump Administration has worked tirelessly to try and boot illegal aliens off of the welfare programs that they have long been infamous for accessing, and as part of that has gone after states like California and Minnesota that are known for illegally allowing illegal aliens to access programs like Medicaid.

    Dr. Oz announced in a post that he made on X on Wednesday, January 14, that the CMS had discovered a much worse degree of fraud than it had initially thought would be the case, and that states involved in the titanic degree of Medicaid fraud were being shut off from federal dollars for those programs.

    Beginning his post, Dr. Oz first noted the amount of fraud that was initially suspected by his agency and that what has so far been discovered is far worse than suspected, saying, “UPDATE: It’s worse than we thought. In October, we flagged $1.3 billion in Medicaid funds that 6 states may have unlawfully spent on health care for illegal immigrants.”

    Continuing, the CMS Administrator noted that the real number is nealry 50% larger than was suspected at the end of October, when he first started digging into it, saying that just 8 blue states have spent nearly $2 billion on health care for illegal aliens. He said, “Since then, we’ve gathered more data and the total has grown to over $1.8 billion across 8 states.”

    Emphasizing that what those blue states are up to is absolutely illegal, the CMS Administrator then explained that states that spend state dollars on healthcare for illegals must prove that no federal dollars were involved, saying, “It’s against the law to spend federal Medicaid funds on non-emergency healthcare for illegals. If states use their own money to do it, there needs to be a clear paper trail proving that federal dollars didn’t fund those services.”

    Further, he noted that the eight blue states at issue have not provided the required documentation for what is going on and what they have been up to, and so he is slashing hundreds of millions of dollars of taxpayer funding for the worst of the offenders when it comes to healthcare for illegal aliens: the Republic of California.

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    He said, “These states failed to provide that for this $1.8 billion. So today, CMS is announcing that we’re withholding nearly $300 million from California — which is by far the worst offender — until they demonstrate to our satisfaction that they’re spending that money properly.”

    Concluding, Dr. Oz added that he will continue digging into the matter and every dollar will be recovered as all the wrongdoers are held accountable. He said, “Medicaid dollars belong to Americans, not illegal immigrants, and we won’t stop until we’ve held rogue states accountable and recovered their misspent funds. More announcements to come.”

    That’s not all. At a joint press conference alongside Dr. Oz on the matter of California fraud, First Assistant U.S. Attorney Bill Essayli explained that California is being audited and targeted for the fraud, saying, “[Dr. Oz] and his team are auditing California programs, California systems, California doctors.” Further, Essayli noted, of a fraud scheme that Dr. Oz described in the press conference, “What Dr. Oz is referring to, the scale is almost beyond even our imagination.”

    Watch Dr. Oz comment on the fraud in late October:



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