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Judge Denies State's Motion to Prevent Federal Administration From Withholding Medicaid Funds

  • On Monday, Judge Eric Tostrud denied Minnesota's request to block the Trump administration's withholding of Medicaid funds, ruling that state officials filed the lawsuit prematurely before any cuts were finalized.
  • CMS Administrator Mehmet Oz and Vice President Vance announced in February that the federal government would withhold $259 million from the state over concerns about fraud in Minnesota's social services programs.
  • Minnesota Attorney General Keith Ellison targeted $243 million withheld from 14 programs, claiming the deferral constitutes 'political retribution,' though Tostrud acknowledged it is 'historically unprecedented in its size and timing.'
  • Tostrud ruled Minnesota's injunction request relied on assumptions about future events, noting the state acknowledged a 'serious fraud problem' and that deferral proceedings 'just started.'
  • Although Tostrud denied the immediate request, Minnesota may still prevail later in the case, as the federal government remains on solid legal footing requiring documentation for fund disbursement.
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Star Tribune broke the news in Minneapolis, United States on Tuesday, April 7, 2026.
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