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Trump admin to halt Medicaid funding to Minnesota over fraud concerns
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February 26, 2026
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2:46Now PlayingSome Medicaid funding in Minnesota will be paused as the Trump administration addresses concerns over fraud, according to an announcement by Vice President J.D. Vance, who is set to spearhead a national "war on fraud."
President Trump spoke on fraud in Minnesota during his State of the Union speech Tuesday night, and previously cited it as a reason for the surge of immigration enforcement in the state.
The Vice President appeared at the podium with Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz to announce the temporary pause in federal funding.
Oz said the federal government will delay $259.5 million in Medicaid funding to Minnesota.
"This is not a problem with the people of Minnesota, it's a problem with the leadership of Minnesota and other states who do not take Medicaid preservation seriously," Oz said.
Oz said CMS will solicit tips and suggestions from citizens on ways to "crush fraud."
Minnesota Governor Tim Walz shared the following response: "This has nothing to do with fraud. The agents Trump allegedly sent to investigate fraud are shooting protesters and arresting children. His DOJ is gutting the U.S. Attorney’s Office and crippling their ability to prosecute fraud. And every week Trump pardons another fraudster."
FOX 9 Minneapolis reporter Soyoung Kim joins LiveNOW's Shawna Khalafi with more.
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