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Vance says administration is pausing some Medicaid funding to Minnesota because of fraud concerns

The Trump administration paused $259 million in Medicaid funds to Minnesota over alleged fraud, demanding a corrective plan within 60 days before resuming payments.

  • Vice President JD Vance announced Wednesday that the administration would withhold $259 million in Medicaid funding to Minnesota over fraud concerns, notifying Gov. Tim Walz.
  • Earlier prosecutions and probes, including DOJ actions, revealed fraud tied to Somali-run day care centers in Minneapolis and the Feeding Our Future nonprofit's $250 million pandemic fraud.
  • CMS said as part of the move that Minnesota has 60 days to respond to concerns involving $244 million in unsupported claims and about $15 million tied to immigration-status issues, warning of up to $1 billion in deferred funds next year.
  • State officials warned that the pause could be political retribution, and cuts may exceed $2 billion annually, impacting Minnesota's health-care providers and low-income residents, while the governor called it devastating.
  • Vance said the broader effort will involve the U.S. Department of Justice and Treasury Department, and his office recently helped launch the Division of National Fraud Enforcement, while a nationwide Medicare enrollment freeze lasts six months.
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Trump admin halts Medicaid payments to Minnesota over fraud claims

The Trump administration is withholding more than $250 million in Medicaid funds from Minnesota, escalating a pressure campaign on the state’s Democratic leadership and claiming widespread fraud.

·Atlanta, United States
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Click on Detroit broke the news in Detroit, United States on Wednesday, February 25, 2026.
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