‘War on Fraud’: White House to Withhold $259 Million in Medicaid Funding from Minnesota

Vice President J.D. Vance on Wednesday announced a freeze on $259 million in Medicaid payments to Minnesota, escalating tensions with the Democratic-led state one day after President Donald Trump tapped him to lead the “war on fraud.”“ “We have decided to temporarily withhold a certain amount of Medicaid funding to Minnesotans,” Vance said at a news conference, referring to the nation’s health insurance program for low-income Americans.

Mehmet Oz, the current director of the Centers for Medicare and Medicaid Services, said the federal government will freeze $259 million in payments to the state. The Trump administration has repeatedly claimed that public welfare fraud is widespread in Minnesota, allegations tied to the state’s Somali community. Trump also criticized Somali immigrants during his State of the Union address on Tuesday, when he announced that Vance would take on new fraud oversight responsibilities. Minnesota has the largest Somali community in the United States. The funding freeze is almost certain to face legal challenges, and the Trump administration has previously tried to withhold federal funds from states. The administration also has clashed with Minnesota over immigration enforcement. In January, federal agents shot and killed two Americans during an immigration crackdown in the state. Vance’s appointment to lead anti-fraud efforts comes amid speculation that the 41-year-old could become a front-runner for the 2028 Republican presidential nomination. However, the appointment puts him among the ranks of U.S. vice presidents responsible for politically sensitive posts. She faced the challenge after then-President Joe Biden asked his predecessor, Kamala Harris, to address the root causes of migration from Central America.