Medicaid portals go down amid federal funding freeze, prompting confusion and anger

After President Trump issued an order to freeze federal spending, lawmakers complained that state Medicaid portals were down and nonprofit groups were angry and confused by the disruption.

After President Trump issued an order pausing federal spending, Medicaid portals were inaccessible nationwide Tuesday, alarming lawmakers and nonprofit groups. A court ruling has blocked Trump's order from taking effect until next week.

The Medicaid portals were down Tuesday, a day after Trump ordered a wide-ranging pause on federal aid.

Sen. Ron Wyden of Oregon, the ranking Democrat on the Senate Finance Committee, said on X that his office confirmed, “Medicaid portals are down in all 50 states following last night's federal funding freeze.” Other Democratic lawmakers expressed outrage over the disruption.

White House spokesperson Karoline Leavitt said Tuesday afternoon that the Medicaid portals will be back online soon.

“The White House is aware of the Medicaid website portal outage,” Leavitt said on X. “We have confirmed no payments have been affected — they are still being processed and sent. We expect the portal will be back online shortly.”

Late Tuesday, a federal judge issued a temporary stay temporarily blocking Trump’s federal spending freeze until Monday, Feb. 3, the Washington Post reports.

On Wednesday, Trump rescinded the order to freeze federal grants, NBC News reported.

A group called Democracy Forward led the suit to thwart Trump’s spending freeze, arguing it's unconstitutional. The group represents a wide range of nonprofit groups, including a host of healthcare organizations.

Georges C. Benjamin, MD, executive director of the American Public Health Association, said in a statement supporting the suit that Trump’s spending freeze hurts health organizations nationwide.

“By pausing these vital funds, which were approved by Congress, this decision threatens to stall essential public health and prevention programs and research. Halting these funds stymies progress and is a matter of life and death,” Benjamin said.

Even with the expected restoration of the Medicaid portals, some healthcare organizations were scrambling and fielding calls about the disruptions.

Rep. Terri Sewell, an Alabama Democrat, wrote on X Tuesday afternoon, “My office has received reports that Alabama’s Medicaid portal is shut down. More than 1 million Alabamians rely on Medicaid along with the providers, hospitals, & clinics that serve them.”

The Virginia Hospital & Healthcare Association is among the groups that struggled to get a handle on the situation.

“VHHA has been informed that reimbursement for work performed under federal health care grants has been suspended, and we have received mixed responses regarding the suspension of Medicaid reimbursements for patient care,” the group said in a statement.

“There are many federally funded programs across the spectrum of public and community health, as well as mental health and substance use treatment services, among others, that are administered by private sector and non-profit organizations which provide real value and benefit to help people improve their lives and well-being.”

Beth Liston, an Ohio state senator who’s a doctor, said the Medicaid payment portal to Ohio was down.

“Hospitals, doctors, dentists - all providers are not getting paid,” Liston said on X.

The executive order freezing funding was issued Monday and a memo from the White House Office of Management and Budget said it was to take effect at 5 p.m. Tuesday. The memo states that federal agencies are directed to ensure that aid follows the president’s priorities, and said funding affected would include but not be limited to “DEI, woke gender ideology and the green new deal.”

The Office of Management Budget also provided guidance that Medicare and Social Security benefits would not be affected by the pause. The office also stated, "mandatory programs like Medicaid and SNAP will continue without pause."

Sen. Jack Reed, a Rhode Island Democrat, said on X that he’s not sure if the disruptions are due to “gross incompetence or an unprecedented power grab.”

“Either way, it puts key federal responsibilities on the chopping block, including: public safety, education, health care & Medicaid, veterans care, infrastructure, housing, national security & more,” Reed said in a statement.

Sen. John Fetterman said his office has received calls about the fallout from the pause on federal aid, including its impact on Medicaid, and he urged Trump to reverse the freeze.

“These services, including Medicaid, are critical to our most vulnerable and I am calling on @POTUS to immediately restore access,” Fetterman said on X.

Beyond the confusion over the temporary spending freeze, many healthcare leaders have been worried about cuts in funding for Medicaid as Trump looks to reduce federal spending.

Hospitals say that Medicaid provides critical funding, particularly for safety-net hospitals and rural hospitals, and lasting cuts would add to cost pressures. They also warn that reduction in Medicaid coverage could lead to hospitals treating more people without coverage and more insured Americans showing up in emergency rooms. About 80 million Americans are covered by Medicaid.

Hundreds of organizations sent President Trump a letter last week imploring him to preserve Medicaid funding.