The Arc responds to more than $1 billion in federal Medicaid payment deferrals and calls for fraud oversight that protects continuity of care, disability services, and community living.

On July 21, 2026, HHS and CMS paused more than $1 billion in Medicaid payments to California and Minnesota citing the existence of fraud but without providing specific evidence of alleged fraud. This action threatens access to healthcare and community support needed by people with disabilities. The Arc of the United States is concerned that broad payment actions and sweeping fraud narratives are taking too broad an approach. The federal government’s actions limit Medicaid services for people with disabilities and their families and demonstrate a lack of understanding of what people with disabilities want: a life in the community, with as much independence as possible.

People with disabilities must be at the center of decisions about Medicaid, not treated as collateral damage in efforts to strengthen program integrity.

Katy Neas, CEO of The Arc of the United States, responds:

“The federal government’s actions are troubling because the goal should be to stop fraud while protecting continuity of care for those who need it. We hear from people every day who are scared and uncertain because they don’t know if their healthcare and services will continue. When conversations begin and end with fraud allegations, people lose sight of what Medicaid actually does and who depends on it. Medicaid helps people with disabilities get out of bed in the morning, attend school, get into the workforce, and be a part of their community. It helps families balance the need to care for their loved one with daily, intense support needs, while they work to put food on the table and care for the whole family. And it provides millions of people access to health insurance. Strong oversight to weed out fraudulent activities and a strong service delivery program are not competing goals. We can and must do both.”

For Reporters

Katy Neas is available for interviews about Medicaid, home and community-based services (HCBS), and how federal and state Medicaid policy affects people with disabilities and their families. For media inquiries or to request an interview, contact dilworth@thearc.org.