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Walz Unveils Antifraud Package After Trump Administration Freezes Minnesota Medicaid Funds

Gov. Walz's 18-point plan aims to improve fraud detection, enforcement, and oversight after federal pause of $259 million in Medicaid payments due to fraud concerns.

  • On Thursday, Gov. Tim Walz unveiled an 18-point anti-fraud legislative package after federal officials paused Medicaid payments to Minnesota, aiming to improve detection, strengthen investigations and raise penalties.
  • Walz long pursued reforms that predated the federal move as Minnesota DHS implemented changes since 2024 and Program Integrity Director Tim O'Malley documented decades of failures last year.
  • Walz detailed measures that include creating a centralized statewide Office of Inspector General, expanding audits, analytics and site visits, and raising penalties by 20% for theft of public funds.
  • Federal officials gave Minnesota 60 days to respond, and Walz and Ellison will testify before the U.S. House Oversight Committee on March 4, 2026, amid potential harm to over 1.2 million residents.
  • Amid partisan debate, Minnesota Legislature is weighing proposals, with Senate SF856 passed last year and House approval stalled, as Gov. Tim Walz hopes for bipartisan acceptance.
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By presenting an anti-fraud package, Tim Walz aims to recover $259.5 million in Medicaid funds suspended to Minnesota

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www.t-online.de broke the news in on Wednesday, February 25, 2026.
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