The Trump administration will defer another $1.2 billion in federal Medicaid payments to California — yaani roughly ₹10,500 crore — Centers for Medicare & Medicaid Services (CMS) Administrator Mehmet Oz announced at the White House on Tuesday, October 20, in an event with President Donald Trump and Vice President JD Vance.

The target is California's personal care services program, which pays family members and other caregivers to help older adults and people with disabilities with tasks such as washing, dressing and feeding themselves, largely through the In-Home Supportive Services (IHSS) program. "California has been growing that program 24% in the last three years," Oz said. "That is twice the rate of every other state average in the country. Impossible for us to understand how that could be so." He added: "Many of you would carry groceries upstairs for your mom for free, I would think, but in California they'll pay you a lot of money for it." Oz said state officials were notified on Tuesday. He did not present specific evidence of fraud in the program; the administration's case rests on the growth rate.

CMS has already withheld around $2.2 billion from California over the course of this year, most of it tied to the same in-home care program, and has also deferred payments to Minnesota. The deferred money stays under CMS review and can end in payment or permanent cancellation; California would have to cover any shortfall. The funds amount to roughly 4% of the state's annual federal Medicaid payments. California has protested the deferrals, saying the federal government has not provided sufficient evidence of fraud and that the growth reflects rising demand; in May, after an earlier $1.3 billion deferral, Governor Gavin Newsom's office called the move a politically motivated attack on services that keep seniors and people with disabilities out of nursing homes, the Los Angeles Times reported. Neither CMS nor California officials immediately commented on Tuesday's announcement. Sources: Bloomberg Law; Washington Sun (KFF Health News); Washington Examiner; Forbes Breaking News.