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Trump DOJ sues New York health officials over alleged 'backroom deal' in home care overhaul
By
Caroline Lewis
Published Jun 16, 2026
Modified Jun 18, 2026
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MoMo productions/Getty Images
By
Caroline Lewis
Published Jun 16, 2026
Modified Jun 18, 2026
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The Trump administration filed a lawsuit on Tuesday against New York state health officials, alleging they illegally engaged in a “backroom deal” to hand over control of a popular, publicly funded home health program to the Georgia-based company PPL, which is also named in the suit.
The New York state Department of Health engaged in a “sham” bidding process and “preselected” PPL for the lucrative work, according to the U.S. Justice Department.
The complaint alleges that PPL misrepresented how much it would cost to administer the $9 billion program, known as the Consumer Directed Personal Assistance Program, making itself “artificially attractive.”
Federal officials said in a statement that the lawsuit was filed as part of a broader effort to prevent fraud and protect taxpayers. It asks the court to unwind the transaction.
Named as defendants are Dr. James McDonald, in his official capacity as state health commissioner, and Amin Bassiri, individually and in his official capacity as state Medicaid director, in addition to PPL.
“Public Partnerships LLC (PPL) was selected through a transparent, competitive process to strengthen and modernize New York’s CDPAP program, and we are proud of our work to deliver greater accountability, consistency, and support for the hundreds of thousands of New Yorkers who rely on it,” Meg Fitzgerald, vice president of public affairs of Berlin Rosen, which represents PPL, said in a statement.
Cadence Acquaviva, a spokesperson for the state health department, rejected the lawsuit’s claims.
“This baseless complaint is the latest attempt by Washington Republicans to score political points at the expense of vulnerable New Yorkers,” Acquaviva said in a statement.
“The fact of the matter is this administration saved CDPAP from a fiscal crisis by removing hundreds of wasteful administrative middlemen,” Acquaviva added.
The Justice Department’s complaint echoes accusations New York lawmakers, healthcare advocates and home care consumers have leveled against the Hochul administration as the state has worked to overhaul the CDPAP.
The Consumer Directed Personal Assistance Program serves more than 200,000 New Yorkers with disabilities, allowing them to hire their own aides to assist with activities of daily living — including friends or family members — who then get paid through Medicaid.
The program was previously administered by hundreds of companies throughout the state, but after taking office, Gov. Kathy Hochul decided to put one company at the helm in an effort to streamline the program and lower costs. She awarded the contract to PPL in 2024.
Both Hochul and PPL faced a torrent of criticism after a rocky rollout that many said was rushed and put needed services at risk.
According to the health department, the program’s new structure saved the state $1 billion in the first year, while improving accountability and making it easier to prevent fraud.
Correction: A previous version of this story misattributed a statement issued on behalf of Public Partnerships LLC.
Tagged
Health and Science
health department
new york state
Caroline Lewis
Caroline Lewis is on the health care beat for WNYC and Gothamist. She has covered COVID, a nurses' strike, the overdose crisis and New York’s marijuana legalization effort, and spent a year investigating patients' medical bills. She always wants to hear about how everyday New Yorkers experience the health system. Got a tip? Email [email protected].
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Gothamist is funded by sponsors and member donations
Gothamist is funded by sponsors and member donations
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