U.S. Sues N.Y. State Over Troubled $11 Billion Home Health Care Program

June 17, 2026 - 06:12

The U.S. Justice Department has filed a lawsuit against New York State, accusing officials of failing to oversee a troubled $11 billion home health care program. The suit claims that state regulators allowed a vendor to siphon off millions of dollars meant for patient care, leading to widespread waste and abuse.

According to the complaint, the vendor exploited weak oversight to bill for services that were never provided or were medically unnecessary. The Justice Department argues that New York's lax monitoring violated federal rules and put vulnerable patients at risk. The program, which provides in-home care for elderly and disabled residents, has been under scrutiny for years due to rising costs and reports of fraud.

A spokeswoman for Governor Kathy Hochul pushed back, calling the lawsuit an attempt to weaponize the justice system for political purposes. She insisted that the state has taken steps to improve oversight and that the federal government's claims are exaggerated. The legal battle is expected to draw attention to broader issues in Medicaid-funded home care, a sector that has grown rapidly as states seek alternatives to nursing homes.