The Trump administration has announced a pause on more than $1 billion in Medicaid payments to the states of California and Minnesota, citing suspected fraud and noncompliance.

U.S. Health Secretary Robert F. Kennedy Jr. said the decision was made as part of ongoing efforts to strengthen oversight and ensure federal healthcare funds are used in accordance with program requirements.

Federal officials are expected to review the affected payments while investigations into the alleged issues continue. The move could have significant implications for healthcare funding and services in both states if the pause remains in effect.

The administration has not yet provided a timeline for when the review will be completed or when the suspended payments could be released.