The Trump administration is temporarily halting some federal Medicaid funding to Minnesota, Vice President JD Vance said Wednesday, citing fraud concerns and framing the move as part of a broader crackdown on misuse of public benefits.
The announcement came one day after President Donald Trump said during the 2026 State of the Union address that he had tapped Vance to lead a “war on fraud,” singling out alleged abuses in Democratic-led states, particularly Minnesota.
Vance appeared alongside Centers for Medicare & Medicaid Services Administrator Mehmet Oz at the White House as he described the decision to “temporarily halt” some Minnesota Medicaid disbursements pending review, according to a report from the Associated Press (AP).
Newsweek reached out to the office of Minnesota Governor Tim Walz on Wednesday night by email for comment.
Why It Matters
The federal government’s decision to pause portions of Medicaid funding could have implications for Minnesota’s health care providers and low-income residents.
Medicaid is a joint federal–state program that finances medical and long-term care for eligible low-income adults, children, pregnant people, seniors and people with disabilities, according to the Centers for Medicare & Medicaid Services (CMS).
Minnesota is under scrutiny for fraud in its social services programs, a scandal that has led Governor Tim Walz to end his bid for a third term. The state has been under the spotlight over a series of fraud cases, including one involving the nonprofit Feeding Our Future, which the Department of Justice says stole $250 million during the pandemic. Prosecutors have said fraud schemes targeting Minnesota-run programs could have led to more than $9 billion in losses.
What To Know
Vance said Wednesday that the administration would “temporarily halt” some federal Medicaid funds to Minnesota, with the AP reporting the move was tied to fraud concerns.
Specific information on the funding streams that will be affected or on the duration of the pause was not immediately available.
Medicaid operates under federal law with state administration and federal matching funds. CMS oversees program integrity and may act on funding when it identifies compliance or fraud risks, according to federal program materials.
During the State of the Union address Tuesday night, President Trump referenced Minnesota fraud multiple times and was met with chants of “Liar!” by members of the crowd, including Democratic U.S. Representative Ilhan Omar of Minnesota.
What People Are Saying
JD Vance, Vice President, said in a post on X following the announcement on Wednesday: “The United States of America is a generous country and we take care of our own. It’s disgraceful that fraudsters out there are taking advantage of programs like Medicaid. That stops today.”
Legislative Auditor Judy Randall told lawmakers during a meeting of the Legislative Audit Commission in January: “Because we identified a number of different documents that again have been created in response to our requests for documentation or that had actually been created and then backdated, we do have some questions about the validity of the documentation we were provided. … It is frankly unacceptable for the agencies we audit to do this type of activity.”
What Happens Next
The administration has not publicly released details on the scope or timeline of the funding pause as of Wednesday evening.
Additional federal guidance from CMS and a state-level update will clarify whether the pause affects provider payments, managed care plans, or administrative funding streams, and when any halted funds could resume.
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