concerns

June 1 (UPI) — Florida’s attorney general announced Monday that the state is suing OpenAI and its founder and CEO, Sam Altman, saying the company chose “profits over public safety” in creating a dangerous product in the form of ChatGPT. It is the first state to sue the company over these design and safety concerns.

“The rise of OpenAI is attributable to a web of deceit and the exploitation of users (including Floridians), leveraging their data and safety to boost OpenAI’s market value at unacceptable costs,” the complaint filed by Attorney General James Uthmeier said, NBC News reported.

The lawsuit claims that OpenAI violated Florida’s rules on deceptive business practices and knew that its chatbot could be dangerous to children and others through actions such as providing “harmful information such as tips on eating disorders, self-harm and mass murder,” The New York Times reported. It says OpenAI presents “a great danger of addiction, cognitive decline, suicide, violence and related harms.”

The civil suit is separate from Florida’s ongoing criminal investigation into OpenAI, which Uthmeier openedin April. It includes multiple counts of deceptive and unfair trade practices, negligence, violations of product liability laws, fraudulent misrepresentation and causing a public nuisance.

OpenAI representatives have not yet commented on this lawsuit. Representatives have said in response to past claims that the company designs its systems with safety in mind and that there are “safeguards in placeto help people, especially teens, when conversations turn sensitive.”

“We continue improving ChatGPT’s training to recognize and respond to signs of mental and emotional distress, de-escalate conversations and guide people toward real-world support,” the company said in a prior statement.

The lawsuits also mentions OpenAI’s connections to a mass shooting at Florida State University and killings at the University of South Florida. In both cases, suspects asked ChatGPT for information connected to the attacks.

Published on 03/06/2026 – 11:31 GMT+2•Updated
11:36

The Spanish fashion giant behind Zara, Inditex, posted net income of €1.4 billion in the first quarter, up 5.4% year-on-year and ahead of market expectations.

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Sales rose 5.8% to €8.7bn, or 8.8% at constant exchange rates, ahead of the roughly 8% analysts had anticipated.

Gross profit rose 6.9% to €5.4bn, helped by an improvement in profit margins, meaning the company kept a larger share of revenue as profit. EBITDA, a measure of underlying earnings, increased 7.3% to €2.6bn.

Inditex shares rose more than 5% on Wednesday after the company reported a strong start to the second quarter, with sales increasing 11.5% between 1 May and 1 June, reassuring investors that the Zara owner remains resilient despite signs of weakening consumer spending.

“Inditex continued its strong momentum with its latest results beating first quarter expectations, and also seen a strong start to the second quarter too, as sales grew more or less in line with the rate the company exited with in the previous quarter,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.

The revenue jump from one of the world’s largest listed clothing retailers points to solid consumer appetite heading into the summer, despite concerns that a more uncertain economic and geopolitical backdrop could weigh on spending in the months ahead.

Navigating geopolitical risks

The results come as businesses around the world face growing uncertainty over the global economy and concerns that consumers may cut back on spending.

Inditex said its wide-ranging supply chain and flexible transport network had helped it keep products flowing to stores around the world despite recent disruptions.

“Ultimately, Inditex continues to have a resilient business model that can withstand significant economic pressures and currency headwinds,” said Mamta Valechha, consumer discretionary analyst at Quilter Cheviot.

Valechha said strong customer demand and the company’s ability to source products close to its key markets had helped it keep collections up to date while limiting the need for discounts. Productivity improvements had also helped protect profitability.

Inditex also said that the current “geopolitical challenges” had an impact on the sales in the Middle East, a region that Barclays estimates accounts for about 5% of its revenue.

The company also warned that ongoing instability in the region could affect its performance in the months ahead.

Inditex faces a number of other challenges, including higher shipping costs and rising prices for raw materials such as cotton and polyester. Currency movements are also expected to weigh on results this year.

Inditex ended the quarter with 5,456 stores and a net cash position of €10.8bn.

The board has proposed a dividend of €1.75 per share for the last fiscal year, comprising an ordinary component of €1.20 and a bonus of €0.55, payable in two instalments in May and November 2026.

Despite the strong start to the year, Inditex left its outlook unchanged. It said it expects sales growth to continue into the second quarter, supported by strong demand for its spring and summer collections and ongoing improvements to its stores and operations.

However, the company said currency fluctuations are likely to reduce sales growth by around 1% over the full year. It also expects to invest about €2.3bn in the business during the current financial year.

SANTIAGO, Chile, June 2 (UPI) — Chile has recorded a historic decline in births, with the birth rate falling 46.9% over the past 32 years and the total fertility rate dropping below one child per woman for the first time, raising concerns about long-term population replacement.

According to the National Statistics Institute, or INE, report “Demographic Overview of Chile,” the number of births declined to 146,446 in 2025 from 275,916 in 1993. The average number of children per woman last year fell to 0.99 live births, a 59.4% decrease from 1993.

At the same time, the share of births to foreign mothers has increased significantly. Between 2017 and 2025, the proportion nearly tripled, rising to 19.7% of live births from 6.9%.

“These are concerning figures. Chile is the most aged country in Latin America, with one of the region’s highest life expectancies at 81.5 years, comparable to Canada,” public health specialist Claudia Rodriguez, head of the Public Health Department at the University of the Andes, told UPI.

“As a result, Chile is beginning to display the demographic characteristics of a developed country without being one, and the country could soon reach a point where deaths outnumber births,” she said.

Sara Parada, director of obstetrics at Andres Bello University, said the decline reflects a combination of social, economic, cultural and institutional changes.

“Women are making reproductive decisions in a more informed environment. Greater female participation in higher education and the labor market has contributed to delaying motherhood,” she told UPI.

She said additional factors include the high cost of raising children, uncertain or unstable employment conditions, and limited support from partners in caregiving responsibilities.

“There has been a significant cultural shift. Motherhood is no longer viewed as an obligatory path for all women, but as an autonomous and informed decision that coexists with other life goals,” Parada said.

“That in itself is not negative. The problem arises when people who do want children do not find the material, labor, family or institutional conditions needed to have them.”

Parada noted that Chile’s situation is not unique and reflects a broader trend across Latin America and the Caribbean.

“Fertility has been steadily declining across the region. According to the Economic Commission for Latin America and the Caribbean, fertility reached 1.8 children per woman in 2024 and has remained below the replacement level of 2.1 children per woman since 2015,” she said.

“In 2024, 76% of countries and territories in the region recorded fertility rates below that threshold.”

She said Costa Rica registered 1.32 children per woman, Uruguay 1.40 and Argentina 1.50.

Uruguay’s birth rate continues to decline. The country recorded about 50,000 births in 2016, but the figure fell to 29,000 within a decade. The National Institute for Educational Evaluation estimates the number of students will decline by 25% by 2045.

“In less than 10 years, Argentina’s birth rate has fallen 40%. The countries facing the most severe fertility crises in the region are Uruguay, followed by Chile and then Argentina,” family specialist Lorena Bolzon told Argentine newspaper La Nacion.

Parada said Chile stands out not only for having one of the region’s lowest fertility rates, but also for the speed of the decline.

Analysts warn that a sustained drop in births could have significant long-term consequences by reducing the future working-age population, potentially affecting labor availability, productivity and economic growth unless accompanied by adaptation policies.

“It also increases the proportion of older adults relative to the active population, placing greater pressure on pension systems, healthcare spending and long-term care services,” Parada said.

She said governments should not focus solely on encouraging births, but instead adopt comprehensive measures that support families, including access to child care, work schedules compatible with family life and financial assistance for raising children.

May 22 (Asia Today) — Concerns are growing over possible security gaps in East Asia after the United States used large numbers of advanced interceptor missiles while defending Israel during the Iran conflict, according to a report published Wednesday.

The Washington Post reported Wednesday, citing recent Pentagon assessments, that the United States fired more than 200 THAAD interceptors during Operation Epic Fury to block Iranian ballistic missile attacks.

The figure reportedly amounts to about half of the Pentagon’s total THAAD interceptor inventory.

The United States also used more than 100 Standard Missile-3 and Standard Missile-6 interceptors launched from Navy warships, the report said.

By contrast, Israel reportedly used fewer than 100 interceptors each from its Arrow and David’s Sling missile defense systems, preserving more of its own stockpile and raising questions about uneven resource consumption between the allies.

Military experts told the newspaper the imbalance stemmed from a prearranged ballistic missile defense structure under which the United States assumed responsibility for the most advanced interception missions.

Israel has increasingly relied on the United States for ballistic missile defense while fighting simultaneous conflicts in Gaza, Lebanon and Yemen, stretching its military capabilities.

The report said growing U.S. missile consumption, combined with limited production capacity, is heightening anxiety in East Asia, where countries such as South Korea and Japan depend heavily on U.S. deterrence against threats from North Korea and China.

Kelly Grieco of the Stimson Center warned that “the bill could come due in a theater completely unrelated to Iran,” referring to East Asia.

The concerns follow earlier reports that U.S. Patriot missile stockpiles had fallen to about 25% of required levels, fueling fears of weakening missile deterrence across the region.

Analysts said any renewed hostilities involving Iran could deepen global security vulnerabilities further.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260522010006688

The World Health Organisation (WHO), a United Nations specialised agency, has declared the resurgence of the Ebola epidemic in the Democratic Republic of Congo (DRC) a case of international concern. Following the declaration of the 17th Ebola epidemic in Ituri province on Saturday, May 16, the WHO announced that the resurgence is attributed to the Bundibugyo strain found in both the DRC and Uganda. 

Tedros Ghebreyesus, WHO’s Director General, said the declaration is based on several elements, notably the high level of positivity of the first samples of tests, the already documented propagation outside Congolese borders, as well as the absence of a vaccine or approved treatment against the specific strain. He noted that the current epidemic does not meet the criteria for a pandemic emergency at this time. 

The recent Ebola virus outbreak is occurring in an area of the country plagued by violence against civilians, which is linked to the Allied Democratic Forces (ADF) rebels, who continue to inflict suffering on the local population despite ongoing joint military efforts by the Congolese armed forces and the Ugandan Peoples Defence Forces (UPDF). In addition to the joint operations, various local militia groups are also active, including the Cooperative for the Development of Congo (CODECO), the Zaire faction, the Convention pour la Revolution Populaire (CRP), and others. This situation has deteriorated the humanitarian conditions in this region of the DRC, leading to a significant displacement of people.

However, the government of Rwanda, through its Ministry of Health, has said it is closely monitoring the resurgence of the Ebola epidemic in the DRC’s Ituri province, noting that no cases of the virus have been detected in Rwanda so far. The government noted that it has taken some measures, including increased vigilance on border posts with the DRC.

“As a precautionary measure, Rwanda has reinforced the testing and vigilance at entry points situated along the border with the DR Congo. Health teams have been mobilised, and the surveillance systems have been reinforced in order to ensure early detection and a rapid intervention in case of need”, the Rwanda Ministry of Health announced in a statement dated May 17.

Sabin Nsanzimana, the country’s Minister of Public Health, who is also an epidemiologist, noted that his ministry would continue to collaborate with national, regional, and international partners to protect the health and security of the Rwandan population.

The epidemic in Ituri province arose nearly six months after the Congolese government announced the end of the 16th Ebola epidemic in Kasai province on Dec. 1, 2025. Following the recovery of the last patient on Oct. 19, 2025, no cases were recorded during the subsequent 42 days.

However, Roger Kambathe, DRC’s Minister of Public Health, Hygiene, and Social Welfare, rejected speculations in the country’s socio-political circles that the resurgence of the Ebola virus is due to negligence on the part of relevant health infrastructure and authorities. During a press conference on Saturday, May 16, the minister addressed accusations of failure in the sanitary surveillance system to manage alerts about the new Ebola epidemic in Ituri.

“You have said something that surprises me. You have said: ‘What did not work, the epidemic has been here for one month and you did not react’. I want to remind you that there was a patient, a nurse, who died in Bunia of an illness which was not reported. I gave the date: 24th April,” the minister said, clarifying that the corpse was eventually transferred to Mungwalu, where local traditional funeral rites caused the propagation of the virus.

“It was during the funeral ceremony that people were crying, thinking that the nurse died from a mysterious disease and touching the corpse, that cases of the virus started appearing,” Roger noted, adding that the first official notification of the virus was on May 5. “This first social notification was through social networks.”

“Three days afterwards, our teams made the official notification. Samples were taken”, the minister continued and stressed that the first analysis did not permit the identification of the particular Ebola strain. “We first researched the Zaire strain, but the results were negative.”

He also said samples were eventually sent to the national biomedical research institute in Kinshasa for complementary analyses, “and it was before yesterday that we received the confirmation of another strain. Thus, I do not know why you say ‘what did not work?’”.

Samuel argued that “there is a rule called ‘7-1-7’: be alerted in 7 days, intervene immediately, and post the diagnosis promptly. And that is what was done”. He assured that response measures are currently in place, particularly through logistics and aerial resources. Between May 8 and May 17, aircraft were already dispatched. This spans just under nine days, and the minister stated that the issue does not lie with the system.

One day before the official government communication on May 16, Jean Kaseya, the Director General of the Africa Centres for Disease Control and Prevention, warned of the high risk of regional spread of the epidemic. Faced with the situation, a high-level regional meeting was convened with the health authorities of the DRC, Uganda, and South Sudan, as well as several international partners, including the WHO and the United Nations International Children’s Emergency Fund (UNICEF).

According to Jean, who is in charge of the African Union’s health agency, the efforts would be centred on strengthening epidemiological surveillance, laboratory capacities, infection control, community engagement, and transborder coordination.

In a related development, measures to fight against the virus are being intensified in Ituri province. At least five tons of medical supplies were sent to Bunia on Sunday, May 17, to support teams fighting the virus. The material arrived at Murongo airport aboard a humanitarian flight, coordinated by the WHO and its partners. On arrival in Bunia, Anne Ancia, WHO representative in DRC, confirmed that the logistical support aims to urgently reinforce response capacities in the zones affected by the epidemic. According to her, the situation requires rapid mobilisation and coordination to prevent the disease from spreading further in the province, which is already weakened by insecurity and population displacement.

“We call on the population to collaborate with the health teams, to rapidly report suspected cases and to respect preventive measures. The response cannot succeed without the involvement of the community”, Anne Ancia charged. The equipment, including individual protective gear, tents, and hospital beds, would enable intensified frontline interventions, strengthened prevention, and infection control to protect communities in the affected zones.

This medical assistance comes while several suspected cases and deaths linked to Ebola have been reported in certain health zones of Ituri, notably in Rwampara and Bunia, forcing the health authorities to reinforce the surveillance and prevention measures. On the ground, medical teams continue community sensitisation, follow-up contacts, and the installation of health control mechanisms to limit the chain of transmission.

United States President Donald Trump concluded his final round of discussions with Chinese President Xi Jinping in Beijing while attempting to present the visit as a major economic success. The summit came at a sensitive moment for both countries as tensions over trade, Taiwan, artificial intelligence technology, and the Iran conflict continue to shape relations between the world’s two largest economies.

Trump emphasized trade agreements and commercial cooperation during the visit, hoping to strengthen his political standing ahead of important midterm elections in the United States. China, however, used the occasion to deliver clear warnings regarding Taiwan and to criticize the ongoing Iran conflict, signaling that major strategic disagreements remain unresolved despite the positive diplomatic atmosphere.

Trump Highlights Economic Progress

During meetings at the Zhongnanhai leadership compound in Beijing, Trump promoted what he described as successful trade negotiations between Washington and Beijing. He stated that both sides had reached agreements that would benefit their economies and help stabilize commercial relations after years of tariff disputes and economic uncertainty.

The United States announced several proposed agreements involving agricultural exports, beef, and energy sales to China. Officials also discussed mechanisms to manage future trade disputes and identified billions of dollars in potential goods trade between the two countries.

One of the most closely watched announcements involved aircraft manufacturer Boeing. Trump claimed China had agreed to purchase 200 Boeing aircraft, marking China’s first major order of American commercial planes in nearly ten years. However, investors reacted negatively because markets had anticipated a significantly larger agreement. Boeing shares declined after the announcement, reflecting disappointment over the scale of the deal.

The summit also failed to produce a breakthrough regarding advanced artificial intelligence technology exports. Expectations had been growing that restrictions on the sale of advanced AI chips from NVIDIA to China might ease, especially after company chief executive Jensen Huang joined the trip. No major agreement emerged on that issue.

China Pushes Back on Iran Conflict

While Trump focused publicly on economic achievements, China used the summit to voice frustration over the war involving Iran. Beijing stated that the conflict should never have started and called for diplomatic efforts to restore peace.

The Iran crisis has become a major international concern because of its impact on global energy markets. Rising instability in the Middle East has pushed oil prices upward and increased fears about disruptions to energy supplies traveling through the Strait of Hormuz, one of the world’s most critical shipping routes.

China’s position reflects both economic and strategic interests. Beijing relies heavily on stable energy imports and also views Iran as an important geopolitical partner that can balance American influence in the Middle East. Analysts believe China is unlikely to pressure Tehran aggressively because maintaining strong relations with Iran supports Beijing’s broader strategic goals.

Although Trump stated that he and Xi shared similar views on Iran, Chinese officials avoided publicly endorsing Washington’s approach. This difference highlighted the continuing gap between the two powers on international security issues.

Taiwan Remains the Most Sensitive Issue

Despite the friendly diplomatic setting, Taiwan emerged as one of the summit’s most serious areas of tension. Xi warned that mishandling the Taiwan issue could lead to conflict, reinforcing Beijing’s longstanding position that the island is part of China.

Taiwan remains one of the most dangerous flashpoints in global politics. China has repeatedly stated that it does not rule out the use of military force to bring Taiwan under its control, while the United States continues to support Taiwan’s defensive capabilities under American law.

American officials maintained that United States policy toward Taiwan had not changed. Secretary of State Marco Rubio emphasized that Washington continues to support regional stability while maintaining its established position on Taiwan.

The issue remains highly sensitive because any military escalation involving Taiwan could severely disrupt global trade, semiconductor production, and international security across the Indo Pacific region.

A Fragile Trade Truce Continues

One of the summit’s most important outcomes may simply be the continuation of the fragile trade truce reached during earlier talks between the two leaders. Previous negotiations had temporarily paused extremely high tariffs and reduced tensions over rare earth mineral exports that are essential for modern technology manufacturing.

However, uncertainty remains about whether the current trade arrangements will continue beyond the end of the year. American officials indicated that no final decision had been made regarding the future of tariff suspensions and broader economic cooperation.

This uncertainty reflects the deeper structural rivalry between the United States and China. While both countries benefit economically from stable trade relations, they remain competitors in technology, military influence, and geopolitical leadership.

Human Rights Concerns Surface

Human rights issues also appeared during the summit. Trump reportedly raised the case of Hong Kong media businessman and democracy advocate Jimmy Lai, who was sentenced to prison under Hong Kong’s national security law.

American officials expressed hope that Lai could eventually be released, while China maintained that Hong Kong affairs are internal matters and rejected foreign criticism.

The discussion demonstrated that human rights disputes continue to complicate relations between Washington and Beijing even during periods of economic cooperation.

Analysis

The Trump Xi summit demonstrated the increasingly complex nature of United States China relations. Both sides attempted to project stability and cooperation, particularly on trade and economic matters, yet major disagreements remained visible beneath the surface.

Trump sought to frame the visit as proof of economic leadership and diplomatic success. However, the relatively modest scale of announced agreements and the lack of major breakthroughs on technology exports limited market enthusiasm.

China, meanwhile, used the summit to reinforce its strategic priorities. Beijing signaled that Taiwan remains a non negotiable issue, defended its relationship with Iran, and resisted external pressure on human rights matters.

The summit ultimately reflected a broader reality in global politics. The United States and China are deeply interconnected economically, but they are also strategic rivals competing for influence across multiple regions and industries. Cooperation may continue in trade and commerce, but tensions over security, technology, and global power are unlikely to disappear soon.

With information from Reuters.

SACRAMENTO — As Los Angeles prepares to host the 2028 Olympics, state lawmakers are raising concerns that potential clashes with President Trump could cause chaos.

State Sen. Susan Rubio (D-Baldwin Park), speaking at a legislative hearing this week on the 2028 Games, expressed concern about Trump’s animosity toward California and questioned whether that could affect the federal financial support that is essential to the Olympics.

“I know we rely a lot on the federal funding,” Rubio said. “Can you assure me that we’re not going to be left in the middle of the planning carrying the bag?”

Rubio was addressing Joey Freeman, the vice president of state affairs for the LA28 Organizing Committee, who testified before lawmakers.

Freeman assured legislators that the organizing committee had a “wonderful working relationship” with the Trump administration. He said the committee successfully advocated for $1 billion in federal funds for state and local law enforcement, and $94 million to boost transportation planning.

LA28 leaders previously projected that the Games will cost more than $7.1 billion. They’ve said the money will come from a mix of sources, including corporate sponsors, ticket sales, merchandise, the federal government and the International Olympic Committee.

Rubio, however, said she remained worried that the federal dollars could fall through.

“As a state, our funding is also stretched thin, and at the end of the day we don’t want to have to step in to save the Olympics,” Rubio said.

Several other concerns were raised during the roughly three-hour hearing, including questions about how to best protect visitors and participants from federal immigration raids. The Trump administration’s increased enforcement actions by Immigration and Customs Enforcement and U.S. Border Patrol last year in the Los Angeles area led to clashes with protesters and widespread concerns about immigrant rights.

Sen. Lena Gonzalez (D-Long Beach) said legislators were working on a package of bills to help rein in ICE during the event.

“Immigration is still front and center,” she said. “People are feeling even more worried that they’ll continue to be deported and kidnapped.”

Other lawmakers grilled Freeman for more information about ticket sales. LA28 previously advertised tickets as being affordable for locals, but many shoppers last month were dismayed to find prices in the thousands.

Freeman said he did not have specifics on the community ticketing program, which earned a rebuke from Sen. Laura Richardson (D-San Pedro).

“You’re in an official state hearing and I think you know there was a problem because it was well-publicized in the news,” she said. “The fact that we came to this committee and you don’t know how many tickets were issued, you don’t know how many of those were under $100 — you don’t have the information that we need.”

Paul Krekorian, executive director of the Los Angeles Office of Major Events, chalked up many of the concerns surrounding the games to political negativity. He pointed to the success of the Olympics in Los Angeles in 1932 and 1984.

“You hear the tickets are too expensive, there aren’t going to be enough opportunities, it’s going to be a big disruption, there’s going to be a lot of traffic, the city just went through these horrible fires, how are we going to pull this off?” he said. “I just want to remind all of us — L.A. knows how to do this.”

Vice President JD Vance said Wednesday that the Trump administration is deferring $1.3 billion in Medicaid reimbursements to California over concerns the state is allowing “fraudsters” to drive up costs to taxpayers, including by pushing unnecessary medications on unsuspecting patients.

“There are California taxpayers and American taxpayers who are being defrauded because California isn’t taking its program seriously. But also, you have people who’ve been prescribed medications that they don’t even need,” Vance said. “Sometimes they’ve had drugs put into their bodies that they don’t need because fraudsters have actually encouraged false prescriptions and false administration and medications.”

Vance, standing alongside Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said the administration is also sending letters to all 50 states informing them that if they do not “effectively and aggressively prosecute Medicaid fraud in their states,” they will see federal funding cut off as well.

“We want California to get serious about this fraud,” said Vance, who President Trump named his “fraud czar” last month.

Oz called out what he said was widespread fraud in hospice services and similar in-home care programs nationally — and particularly in the Los Angeles region — and announced a six-month moratorium on new Medicare enrollment for hospices and home health agencies.

“A third of all these programs in the entire country are in Los Angeles. Ask yourself, how is that possible? It’s not,” Oz said. “They’re not that many people dying in Los Angeles. We’re not talking about California, just Los Angeles.”

He said he and others in the administration determined that “at least half of the hospices, in the entire area around Los Angeles, are fraudulent,” and had shut down 800 of them that last year had “charged the federal taxpayer $1.4 billion,” which “will no longer be paid.” That is a major increase from the 450 providers the administration said it had suspended as of last month.

The announcement was the latest attempt by the Trump administration to highlight and rein in fraud in federal healthcare benefits programs, particularly in blue states. The actions were met with immediate push back from California officials.

“We hate fraud. But that’s NOT what this is,” Gov. Gavin Newsom’s office posted on the social media site X. “Vance and Oz are attacking programs that keep seniors and people with disabilities OUT of nursing homes. Pretty sick.”

Newsom’s office said that the growth of In-Home Supportive Services placements in California was “simple,” and due to California “keeping more people OUT of far more expensive nursing homes!”

Such services cover assistants who help people with daily tasks such as bathing, laundry or cooking; provide needed care such as injections under the direction of a medical professional; and accompany them to and from doctor’s appointments. A 2020 report by the California state auditor found that nearly three-quarters of IHSS caregivers assist a family member.

Newsom’s office wrote IHSS care costs $30,000 a year, while nursing home care costs $137,000 a year. “SAVING TAXPAYERS: $107K per person,” it wrote.

California Atty. Gen. Rob Bonta also criticized the administration’s moves.

“Once again, California appears to be targeted solely for political reasons,” Bonta said. “The Trump administration is planning to defer over $1 billion in Medicaid funding for vital programs that helps seniors and people with disabilities remain safely in their homes.

“My team is carefully reviewing all available information. We have not hesitated to challenge unlawful actions by the Trump administration, and we will continue to act whenever Californians’ rights or access to critical services are threatened,” he said.

Democratic Sen. Alex Padilla also lashed out at the Trump administration.

“The Trump Administration is attacking California over claims that they can’t back up,” Padilla wrote on social media. “Let’s be real, this isn’t about fraud — it’s about punishing a state that didn’t vote for him. Political retribution plain and simple.”

Fraud in California’s hospice industry has been a problem for years.

Authorities in the state promised to crack down on the issue after a Times investigation in late 2020 revealed that unscrupulous providers were billing Medicare for hospice services and equipment for patients who were not actually dying — with the hospice industry in the state exploding in size.

California’s Medicaid program, known as Medi-Cal, is expected to cost about $222 billion for the budget year starting July 1, including both state and federal funding. Roughly 15 million Californians, more than a third of the state, are on Medi-Cal.

Vance, a potential 2028 presidential hopeful, has taken up his work as “fraud czar” with vigor, traveling around the country to drive home the idea that the Trump administration is working diligently to bring down healthcare costs by addressing waste, fraud and abuse that is rampant across the system.

He has said that waste and abuse is particularly prevalent in Democratic-led states such as California, New York and Minnesota.

“We have red states and blue states that go after fraud aggressively, but we also, unfortunately, have some states, mostly blue states, unfortunately, that do not take Medicaid fraud very seriously,” he said Wednesday.

Vance specifically threatened to cut off what he said is billions in federal funding for state-run fraud control units that are meant to prosecute people who abuse the system, but which he said aren’t doing the work. “This is a tool that we want the states to use, but unfortunately, a lot of states aren’t using these tools at all,” he said.

The focus on fraud comes against a backdrop of criticisms that other policy measures pushed by the administration have driven healthcare costs up or made it harder for people to access healthcare — including cuts to Obamacare subsidies and new work requirements in Medicaid, which are expected to strain hospitals around the country and led to millions of people losing healthcare coverage.

Democrats and Republicans have argued over who is to blame for rising healthcare costs, and Vance and Oz have clashed with California leaders before.

In January, Newsom filed a civil rights complaint against Oz after he posted a video accusing Armenian crime groups of carrying out widespread healthcare fraud in Los Angeles. In the video, Oz was shown driving around Van Nuys, saying about $3.5 billion worth of Medicare fraud had been perpetrated by hospice and home care businesses — and “run, quite a bit of it, by the Russian Armenian mafia.”

Newsom called Oz’s claims “baseless and racist.”

The administration previously launched investigations into potential healthcare fraud in at least five states — California, Florida, Maine, Minnesota and New York — and halted some $243 million in Medicaid payments to Minnesota over fraud concerns.

The Centers for Medicare & Medicaid Services has also acknowledged using errant figures to justify a fraud probe in New York, deepening concerns in the administration’s methods for identifying problematic activity.

Vance said the deferral of funds to California and the letters warning other states to get serious is not about political retribution, but a wake up call. He said the Trump administration wants to help states root out fraud and abuse, including with new technologies — but can’t do so if they are not “willing to help themselves” first.

“We don’t want to turn off any money. What we want to do is ensure that people are taking fraud seriously. We want to protect Medicaid, we want to protect Medicare,” Vance said. “But we can’t do that if the states that are administering those programs are allowing those programs to be fleeced by fraudsters.”

The Associated Press contributed to this article.