Trump Administration Freezes Minnesota Medicaid Funds Amid Fraud Concerns

The Trump administration has paused $259 million in Medicaid payments to Minnesota due to concerns about federal fund theft. The funds will be released only when the state proposes a corrective action plan. The move is part of a broader campaign spearheaded by JD Vance against fraud.


Devdiscourse News Desk | Updated: 26-02-2026 03:43 IST | Created: 26-02-2026 03:43 IST
Trump Administration Freezes Minnesota Medicaid Funds Amid Fraud Concerns
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In a decisive move against alleged fraud, the Trump administration has halted $259 million in Medicaid funding to Minnesota. Vice President JD Vance revealed the decision on Wednesday, citing concerns over federal fund misappropriations intended for social welfare programs in the state.

Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, stated that the funds would remain on hold until Minnesota presents a comprehensive corrective action plan. The announcement followed an audit that identified discrepancies in the state's fund management.

This action aligns with President Donald Trump's broader initiative to combat fraud within government programs. Minnesota Governor Tim Walz's office has yet to comment on the situation.

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