Trump Administration Freezes $259M in Minnesota Medicaid Funds, Citing Fraud and Immigration‑Status Claims
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On Feb. 25, Vice President J.D. Vance announced the Trump administration is pausing $259 million in federal Medicaid payments to Minnesota—CMS Administrator Dr. Mehmet Oz said the deferral covers the last three months of 2025 and cited $243.8 million in potentially fraudulent claims plus $15.4 million tied to beneficiaries without “satisfactory immigration status.” CMS has given Minnesota 60 days to propose a corrective action plan and warned the withholdings could grow, framing the move as part of a nationwide “war on fraud,” while Gov. Tim Walz and Attorney General Keith Ellison have vowed legal and political pushback; the action follows prior freezes on Minnesota child‑care funds and broader social‑services withholdings.
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