Trump Just Decertified Hawaii for Something That Has Been Going On Since 2014

Hawaii has been cashing over $2 billion in federal Medicaid checks every single year.

This morning, the Trump administration sent a letter telling them the party is over.

Hawaii's Medicaid Fraud Control Unit was officially decertified today – and every dollar of Medicaid funding in the state is now at risk.

Hawaii Took $2.2 Billion in Medicaid Funds and Produced Zero Convictions

FTC Chairman Andrew Ferguson made the announcement at a press conference in Columbus, Ohio this morning, standing alongside FBI Director Kash Patel, acting Attorney General Todd Blanche, and Dr. Mehmet Oz.

He did not hold back.

"For more than a decade, Hawaii's Medicaid Fraud Control Unit has received millions and millions of dollars to fight fraud and has consistently been one of the lowest performing fraud units in the country," Ferguson said.

Between 2022 and 2025, Hawaii's unit produced zero criminal indictments and zero convictions for Medicaid fraud.

Meanwhile, Medicaid enrollment in Hawaii grew 40 percent and funding grew 27 percent over that same period.

More patients. More money. Zero accountability.

HHS Inspector General March Bell delivered the formal decertification letter to Hawaii Attorney General Anne Lopez – a Democrat – stripping the unit of its $3 million in annual federal funding.

Bell's letter made the stakes explicit: federal law requires every state to maintain an effective Medicaid Fraud Control Unit as a condition of receiving Medicaid funding at all.

Ferguson put it plainly at the press conference: "One of the requirements for getting Medicaid money for your state is to have an effective Medicaid fraud control unit, and if you don't have one, it can jeopardize the state's access to Medicaid money generally."

Hawaii's entire $2.2 billion annual allotment now sits in jeopardy.

JD Vance's Medicaid Fraud Crackdown Told Hawaii This Was Coming

This did not come out of nowhere.

Three weeks ago, Vance stood at a White House press conference and called Hawaii out by name, saying fraudsters in the state had been given "free rein" because the program's administrators simply don't take it seriously.

He sent warning letters to all 50 attorneys general demanding proof of aggressive prosecution – and made the ultimatum clear: produce results, or lose your fraud unit funding.

Hawaii's attorney general pushed back publicly, pointing to $14.1 million recovered through civil settlements across 25 cases since 2021.

One of those settlements was for $30,000.

That was Hawaii's answer – a $30,000 civil fine – while fraudsters moved freely through a $2.2 billion program.

Today was the Trump administration's answer back.

How Ohio Racked Up 481 Medicaid Fraud Convictions While Hawaii Had Zero

The administration chose Ohio for today's press conference deliberately.

Ferguson called Ohio's fraud unit "the gold standard" – and the numbers back it up.

Ohio Attorney General Dave Yost's office secured 444 Medicaid fraud indictments and 481 convictions since the start of 2023, recovering $78.4 million.

Today, prosecutors announced 14 additional fraud indictments in Ohio totaling as much as $50 million in alleged schemes.

Oz announced Ohio would immediately suspend 49 home health care providers identified as high fraud risk.

Same federal program. Same federal funding structure. Completely opposite results.

Ferguson made the lesson explicit: "Avoid becoming like Hawaii, that has zero convictions and zero indictments to show for millions and millions of taxpayer dollars to fight fraud."

Hawaii Medicaid Fraud Unit Faces Consequences a Decade in the Making

What most coverage is missing is how long this has been documented.

Federal auditors flagged Hawaii's fraud unit as far back as 2015 – citing only two of seven investigators as long-term employees, no auditor on staff, no written policies, and no employee training plan.

The state promised to fix it.

Ferguson confirmed today that Hawaii has held the title of lowest-performing Medicaid fraud unit in the country stretching back to 2014.

The Obama administration documented it. The Biden administration documented it. Neither pulled the funding.

Lopez called Vance's earlier criticism "political attacks" that "do not change the facts."

She was right that the facts don't change.

Eleven years of facts, zero convictions, and a $2.2 billion program with no one watching the door.

Trump pulled the certification.

Sources:

• Andrew Rice, "Feds Cut Funding for Hawaii Medicaid Fraud Unit," The Center Square, June 4, 2026.
• "Trump Cuts Funding to Hawaii's Medicaid Fraud Unit," The Hill, June 4, 2026.
• "Federal, State Officials Announce War Against Fraud in Ohio," WOSU Public Media, June 4, 2026.
• "Trump Cuts Off Funds to Hawaii Medicaid Fraud Unit Over Lack of Cases," Reuters, June 4, 2026.
• "Vice President JD Vance Questions Lack of Medicaid Fraud Prosecutions in Hawaii," KITV, May 14, 2026.
• "Hawaii's Fight Against Medicaid Fraud Plagued for Over a Decade," The Garden Island, May 21, 2026.
• "Hawaii AG Joins Others Pushing Back Against Vance's Medicaid Allegations," Honolulu Star-Advertiser, May 27, 2026.