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Trump Admin Cuts $3M Funding to Hawaii Medicaid Fraud Unit

6/4/2026

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Story summary
  • U.S. President Donald Trump’s administration, HHS Inspector General March Bell, denied certification to Hawaii’s Medicaid Fraud Control Unit, ending its $3 million funding.
  • Vice President JD Vance and FTC Chair Andrew Ferguson criticized the unit, noting zero Medicaid fraud indictments in four years despite $12 million in spending.
  • Attorney General Anne Lopez said the unit recovered $14 million, filed criminal charges, and warned the certification loss could jeopardize Hawaii’s $2.2 billion Medicaid for 360,000 enrollees in 2024.