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Trump administration defers $91M more in Minnesota Medicaid funding citing fraud vulnerabilities

CMS said $76 million is tied to high-risk service categories and another $14 million involves payments for ineligible individuals.

  • On Thursday, the Trump Administration notified Minnesota of an additional $91 million in Medicaid funding deferrals, citing fresh concerns about fraud vulnerabilities in state-run social service programs.
  • Medicaid Administrator Mehmet Oz stated the deferral follows a "pattern we can't ignore" of issues, citing the "Learing Center" scandal and recent Department of Justice actions involving childcare centers.
  • Of this latest tranche, $76 million targets 14 service categories deemed highly vulnerable to fraud, while $14 million addresses program integrity concerns including payments for ineligible individuals.
  • Governor Tim Walz denounced the action as a "transparent effort to cut funding" for working people and hospitals, while the Minnesota Hospital Association reports 30% of state hospitals are losing money annually.
  • Separately, the Minnesota Senate earmarked hundreds of millions on Wednesday to stabilize struggling hospitals amid looming federal Medicaid changes under the "One Big Beautiful" bill, pending Minnesota House approval.
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The Business Journal broke the news on Thursday, April 30, 2026.
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