Wednesday’s move is part of a larger Trump administration effort to spotlight and stop fraud around the country.

WASHINGTON D.C., DC — Vice President JD Vance announced Wednesday that the Trump administration would “temporarily halt” some Medicaid funding to the state of Minnesota over fraud concerns, as part of what he described as an aggressive crackdown on misuse of public funds.

Medicaid is the U.S. health care safety net for low-income Americans. As of late 2025, nearly 70 million people were enrolled nationwide.

Vance, who made the announcement with Dr. Mehmet Oz, the administrator for the Centers for Medicare and Medicaid Services, said the administration was taking the action “in order to ensure that the state of Minnesota takes its obligations seriously to be good stewards of the American people’s tax money.”

Vance explained that the providers had already been paid by the state, but now the federal government was holding off on reimbursing the state those funds “until the state government takes its obligations seriously to stop the fraud that’s being perpetrated against the American taxpayer.”

“We’re launching the largest active against fraud that we’ve ever taken,” Oz said before laying out actions that the federal government intends to take,

The first included the pause of $259 million in Medicaid funds to Minnesota. 

“A quarter-billion dollars is not going to be paid this month to Minnesota for its Medicaid claims,” Oz said.

Oz went on to say that Gov. Tim Walz has 60 days to respond to a letter that was sent to him from the department.

Walz released a statement, calling the move a “campaign of retribution.”

“Trump is weaponizing the entirety of the federal government to punish blue states like Minnesota,” Walz said. “These cuts will be devastating for veterans, families with young kids, folks with disabilities, and working people across our state.”

Wednesday’s move is part of a larger Trump administration effort to spotlight fraud around the country. That effort comes after allegations of fraud involving day care centers run by Somali residents in Minneapolis prompted a massive immigration crackdown in the state, resulting in widespread protests.

“If providers and beneficiaries are worried about getting their money and services, please call your governor,” Oz said. “These are services the governor has already paid for; we are just not reimbursing the state. To make it clear, there is a rainy day fund in Minnesota, so we are very confident that people will not be hurt in Minnesota. This is not a problem with the people of Minnesota, it’s a problem with the leadership of Minnesota and other states who do not take Medicaid preservation seriously.”

The announcement also came hours after Minnesota Attorney General Keith Ellison introduced a bill that would add resources to fighting Medicaid fraud.

In 2025, Ellison partnered with Rep. Matt Norris (DFL) and Sen. Ann Johnson Stewart (DFL) to introduce a bipartisan Medical Assistance Program (MAP) Act, but it did not pass the legislature. Now in the 2026 session, Ellison and the two lawmakers announced a revised MAP Act that he said would add 18 staff members to the Medicaid fraud control unit, bringing the total number of staff to 50. 

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