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Trump DOJ Sues New York Health Officials Over Alleged Fraud in $10 Billion Medicaid Homecare Contract
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Trump DOJ Sues New York Health Officials Over Alleged Fraud in $10 Billion Medicaid Homecare Contract

Jun 16, 2026

The Trump administration's DOJ is suing New York health officials over an alleged "backroom deal" to award a $10 billion Medicaid homecare contract to Public Partnerships LLC (PPL). The suit claims a "sham" bidding process and that PPL siphoned millions in excess revenue. New York officials deny the allegations, calling the lawsuit a politically motivated attack by Republicans in an election year.

DOJ lawsuit against New York

  • ▪The Trump administration's Department of Justice sued top New York health officials on June 16, 2026
  • ▪The lawsuit alleges a scheme to rig the bidding process for New York's estimated $10 billion Medicaid homecare program, the CDPAP
  • ▪The lawsuit names NY Health Commissioner Dr. James McDonald, Medicaid Director Amir Bassiri, and Public Partnerships LLC (PPL) as defendants
  • ▪The DOJ seeks to stop PPL's alleged siphoning of funds, appoint a receiver for the company, and unwind the transaction

CDPAP contract rigging allegations

  • ▪According to the complaint, Health Department officials cited "pressure from our Governor’s Office" regarding bidder qualifications
  • ▪The lawsuit accuses NY Medicaid Director Amir Bassiri of helping disqualify other qualified bidders after he personally scored PPL's successful bid
  • ▪The DOJ alleges the New York Health Department awarded the contract to Georgia-based PPL through a "sham bid process" in late 2024

PPL preselection claims

  • ▪The complaint alleges PPL misrepresented its administration costs for the $9 billion program to make its bid "artificially attractive."
  • ▪The complaint alleges that Public Partnerships LLC (PPL) was "pre-selected" to take over the program

Excess revenue billing practices

  • ▪The DOJ claims PPL has taken millions of dollars in excess revenue from the CDPAP by billing at higher-than-expected hourly rates
  • ▪The alleged excess billing by PPL erased the cost savings that consolidating the program's management was intended to create

Political weaponization allegations

  • ▪A spokesperson for NY Governor Kathy Hochul called the lawsuit an attempt by the Trump administration to "weaponize the justice system to attack political opponents."
  • ▪The New York Health Department rejected the lawsuit's accusations, calling the complaint "baseless" and the bidding process fair and competitive
  • ▪PPL stated it was selected through a "transparent, competitive process" and is proud of its work to modernize the CDPAP program

CDPAP consolidation to single entity

  • ▪In 2024, New York's legislature decided to consolidate management of the CDPAP from over 600 entities to a single one
  • ▪New York's Consumer Directed Personal Assistance Program (CDPAP) serves over 200,000 people with disabilities, allowing them to hire their own aides via Medicaid
  • ▪New York's health department claims the new single-entity structure saved the state $1 billion in its first year
  • ▪Governor Kathy Hochul's administration awarded the single-entity contract to PPL in 2024 to streamline the program and lower costs

3 sources

Reuters
US sues New York health officials over alleged fraud in Medicaid homecare program | Reuters
View source article
Baltimoresun
DOJ sues New York health officials over alleged fraud in Medicaid homecare program
View source article
Gothamist
Trump DOJ sues New York health officials over alleged 'backroom deal' in home care overhaul
View source article

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Donald Trump

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Department of Justice enforcementHealthcare fraudUS health policy & drug pricingGovernment contractsTrump administration

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