The federal government moved on July 21, 2026, to freeze approximately $867.5 million in Medicaid payments to California, placing the state's largest home care program for elderly and disabled residents under urgent financial pressure. The U.S. Department of Health and Human Services and the Centers for Medicare and Medicaid Services announced the deferral as part of a broader Medicaid fraud crackdown that also targeted Minnesota, putting more than $1 billion in combined federal payments on hold.
The affected program, California's In-Home Supportive Services initiative, pays caregivers to assist elderly, blind, and disabled Californians with daily tasks including bathing, meal preparation, and medication management. The program currently serves an estimated 875,000 people statewide, according to California's Department of Health Care Services. Provider agencies have warned that if the funding hold is not resolved quickly, service disruptions could follow.
