Administrator of the Centers for Medicare and Medicaid Services Dr. Mehmet Oz announced this week the launch of a nationwide auditopens in a new tab of Medicaid providers ahead of their revalidation.
The move marks the latest effort by President Donald Trump’s administration to crack down on waste, fraud, and abuse in federal programs, and it’s being welcomed by state auditors, fraud experts, and congressional leaders.
“This is a great initiative from the Trump administration, and every single state should comply. Medicaid fraud is happening across the country,” Mississippi State Auditor Shad White told The Daily Signal.
“Even in smaller red states, like here in Mississippi, my office has found Medicaid payments going to dead people, rich people, and illegal immigrants—tens of millions of Medicaid dollars going to people who shouldn’t even be on the program.”
On Monday, White announced that his office uncovered at least $10.5 million in taxpayer dollars administered by Medicaid providers to illegal aliens in the state.
“There’s no doubt this is happening nationwide,” White added. “The Trump administration is making sure that only American citizens who qualify for the program actually get the benefits. If states can’t control their Medicaid programs, I think the Trump administration could stop payments to the states and return the savings to hardworking taxpayers via tax cuts.”
OJ Oleka, CEO of the State Financial Officers Foundation, a nonprofit focused on uncovering taxpayer fraud, told The Daily Signal that White’s findings are “not [an] isolated” incident.
“In our 2025 Oversight Report, state financial officers documented protecting more than $28 billion in taxpayer funds,” Oleka said. “Nearly $6 billion of that involved waste, fraud, and abuse, with a significant portion coming directly from Medicaid programs.”
Oleka also pointed to Kentucky Auditor Allison Ball’s discovery of “nearly $1 billion in improper Medicaid payments in a single review,” citing eligibility failures, overpayments, and coding abuses.
Some members of Congress, however, expressed concern to The Daily Signal that certain states will comply with the Trump administration’s audit, while others may resist out of fear of being held accountable for their failure to protect Americans’ tax dollars.
“Gavin Newsom, like other Democrat governors, has overseen what appears to be billions of dollars of fraud in California, while he and other leaders in his state have not been held accountable,” Sen. Rick Scott, R-Fla., told The Daily Signal. “As a governor, you’re responsible for preventing fraud and rebuilding trust following a failure. I was governor of Florida—I know the stakes.”
“When you’re trusted with the American people’s money, you need to account for every red cent. Newsom should face the music for his failures,” Scott added.
California has recently come under scrutiny over alleged efforts to cover up widespread Medicaid and hospice fraud, including legislation that would prevent independent journalists from investigating potential abuse—such as reporting by Nick Shirley in Minnesota.
The bill has been dubbed as the Stop Nick Shirley Act by critics.
“The rampant fraud in Minneapolis was just the tip of the iceberg, which is exactly why Americans deserve a nationwide audit of Medicaid,” Rep. Andrew Clyde, R-Ga., told The Daily Signal. “I expect blue states will fight critical oversight efforts aimed at protecting the American people’s hard‑earned tax dollars and uncovering the Democrat Party’s corruption at every turn.”
Rep. Mark Harris, R-N.C., echoed Clyde’s remarks and told The Daily Signal that “every state should be put under the microscope and held fully accountable.”
“Just last month right here in North Carolina, fraudsters operating a fake substance abuse facility were sentenced to more than 14 years in prison for a $12.7 million Medicaid fraud scheme that preyed on drug-addicted patients,” Harris added. “These massive schemes are not limited to Minnesota—they expose a systemic failure that has lasted far too long.”
Rep. Andy Harris, R-Md., chairman of the House Freedom Caucus, said such “crimes” amount to schemes that “rob vulnerable patients of the care and services on which they depend.”
“We have seen firsthand in Maryland why cracking down on waste, fraud, and abuse matters, including a $3.6 million Medicaid fraud scheme in Baltimore County,” Harris said in a statement to The Daily Signal. “Every dollar lost to fraud is a dollar diverted from children, seniors, and individuals with disabilities who rely on Medicaid’s critical services. Dr. Oz is right to demand stronger oversight to protect patients and taxpayers alike.”
Despite skepticism from some lawmakers over potential state resistance, Clyde said he remains confident the Trump administration “will expose and prosecute fraudsters—delivering much‑needed accountability to the American people.”
“I expect to hear the click of handcuffs as the audit ends,” Clyde added.
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