Vice President JD Vance speaks next to Administrator for the Centers for Medicare & Medicaid Services Mehmet Oz about combating fraud at the Eisenhower Executive Office Building in Washington, D.C., U.S, February 25, 2026. (Reuters/Kevin Lamarque)
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The Trump administration is halting a certain amount of Medicaid funding to Minnesota amid concerns about theft of federal funds intended for social-welfare programs in the state, U.S. Vice President JD Vance said on Wednesday.
Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz said the federal government had paused the payment of $259 million of deferred Medicaid payments to Minnesota following an audit.
“We have notified the state and that we will give them the money, but we’re going to hold it and only release it after they propose an act on a comprehensive corrective action plan to solve the problem,” Oz said during a joint press conference with Vance.
A spokesperson for Minnesota Governor Tim Walz did not immediately respond to a request for comment
The announcement came after U.S. President Donald Trump, a Republican, tapped Vance to spearhead the administration’s “war on fraud.”
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(Reporting by Andrea Shalal in Washington; Writing by Jasper WardEditing by David Ljunggren)
