The Trump administration has halted more than $250 million in Medicaid payments to Minnesota, citing what it calls widespread fraud and weak oversight by state officials, according to CNN.
Vice President JD Vance said the funding pause will remain in place until Minnesota submits a plan to curb misuse of the program. He accused Governor Tim Walz of failing to protect taxpayers and warned other states could face similar action.
🚨 BREAKING: JD Vance and Mehmet Oz have just announced they are withholding $260 MILLION in Medicaid funds from the State of Minnesota due to FRAUD
— Nick Sortor (@nicksortor) February 25, 2026
“A LOT of people were getting rich off the American taxpayer!”
“There are kids that NEED these autism services, and the money is… pic.twitter.com/pjCzMLSPTY
The move follows President Donald Trump’s pledge in his State of the Union address to aggressively target fraud in federal programs. The administration has also frozen new Medicare payments for certain medical equipment nationwide.
Walz rejected the allegations, calling the action political retaliation, but unveiled new legislation aimed at tightening audits, expanding enforcement, and improving fraud detection. Mehmet Oz said Minnesota has 60 days to demonstrate stronger safeguards before payments can resume.
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