Lawmakers on a House Energy and Commerce subcommittee question Medicaid officials from California, Ohio, Minnesota, and New York regarding accusations of widespread fraud and inadequate oversight.
New York Attorney General Letitia James is facing renewed criticism from Republicans after the Trump administration suspended federal funding for the state's Medicaid Fraud Control Unit (MFCU), citing years of poor criminal enforcement performance and leadership decisions that federal officials say left fraud investigations lagging.
The federal action gives Republicans a new line of attack against James as she campaigns for reelection. Republican challenger Saritha Komatireddy has made the state's struggling Medicaid Fraud Control Unit a key issue in the race, arguing James failed to aggressively prosecute fraud. Federal watchdogs' findings now lend new weight to those claims.
"Letitia James ran New York's Medicaid Fraud Unit into the ground, and now we know why: a deliberate leadership choice to open fewer cases and let them drag on for years," Komatireddy said in a statement to Fox News Digital. "This means New York taxpayers are losing their hard-earned money to fraudsters, and patients and seniors are being hurt or neglected, and no one is holding them accountable."
The Republican Attorneys General Association also chimed in on the funding freeze, arguing it reflected broader differences between Republican and Democratic attorneys general in combating fraud.
"While Republican Attorneys General are aggressively fighting fraud, waste, and abuse, Democrat AGs like Keith Ellison in Minnesota and Letitia James in New York knowingly aid and abet scams and fraud in their states," RAGA Executive Director Adam Piper said in a statement. "Republican AGs are thrilled to roll up our sleeves and work with JD Vance, Republican AG staff alum Andrew Ferguson, Scott Brady, and the White House Task F
