The Trump administration has expanded its scrutiny of state Medicaid programs, launching fraud investigations that have drawn legal challenges from affected states.

New York has become the latest target of federal anti-fraud efforts, with the administration initiating a probe into the state's Medicaid program. Governor Kathy Hochul has been given 30 days to respond to the federal inquiry, according to reports.

Meanwhile, Minnesota has filed a lawsuit against the Trump administration over halted Medicaid funding. Federal officials have stated that Minnesota should do more to combat fraud and have withheld funds as a result of these concerns.

Minnesota officials dispute the federal characterization, arguing that the state's fraud rate falls well below national averages. They have described the federal action as unfair and are challenging the funding freeze through the courts.

The administration's broader crackdown on state Medicaid programs appears to be part of expanded anti-fraud efforts targeting multiple states. The investigations focus on alleged waste and improper use of federal Medicaid dollars by state programs.

The legal dispute highlights tensions between federal and state governments over Medicaid oversight and funding mechanisms, with states arguing they are being unfairly penalized while the federal government maintains it is protecting taxpayer resources from fraudulent use.