Pelosi Joins California Democrats in Pressing The Trump Administration to Release $867 Million in Withheld Medicaid Funding

August 31, 2026 Press Release Washington, D.C. — Today, Speaker Emerita Pelosi joined the California Democratic Congressional Delegation, along with Senators Alex Padilla and Adam Schiff, in sending a letter to U.S. Department of Health and Human Services (HHS) Secretary Robert F. Kennedy, Jr. and Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz urging the agencies to work with California to resolve outstanding concerns and release $867.5 million in deferred federal Medicaid payments. The effort comes in response to CMS’s decision in July to defer $867.5 million in federal Medicaid payments to California while the state provides additional documentation related to certain Medicaid claims. In their letter, the Delegation raises concerns that the payment deferral could put additional strain on the state and threaten access to care for vulnerable Californians. For Central Valley families, doctors, hospitals, and care providers, reliable Medicaid funding is essential to making sure patients can get the care they need. “We should always take fraud, waste, and abuse seriously and make sure taxpayer dollars are being used responsibly. But withholding hundreds of millions of dollars in Medicaid payments without identifying specific fraud puts patients and providers in the middle of a dispute they didn't create,” wrote the Delegation. “California is working with CMS to provide the information being requested. The federal government should work with the state to resolve these concerns quickly and make sure patients continue to have access to the care they need,” the Delegation continued. The letter also pushes back on the suggestion that increased spending on California’s in-home care programs is, on its own, evidence of fraud. The Delegation notes that the growth of these programs has been intentional because in-home care can be less costly than institutional care, while California has also implemented additional safeguards to address areas of concern. The letter is signed by the entire California Democratic Congressional Delegation. Read the full text of the letter here.