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
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