Minnesota's Reimbursements for Medicaid Are Frozen: Vance

Vice President JD Vance said Wednesday that the Trump administration is pausing more than $250 million in Medicaid payments to Minnesota as part of what he called a new federal "war on fraud." At a press conference in Washington, Vance said the federal government will withhold the reimbursements until Minnesota "takes its obligations seriously" and addresses what he described as fraud involving taxpayer money. He did not detail the specific allegations against the state, the Guardian reports. Minnesota Gov. Tim Walz, a Democrat, was being notified at that moment, the administration said.

In his State of the Union address on Tuesday, President Trump announced that Vance would lead the anti-fraud effort. Mehmet Oz, who heads the Centers for Medicare & Medicaid Services, appeared alongside Vance on Wednesday and said this is the first time the federal government has taken the step involving Medicaid against a state. Oz indicated other states could face similar actions. "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," he said, per the AP. In a social media post, Walz said the administration's action is part of a "campaign of retribution," per the Washington Post.

"Trump is weaponizing the entirety of the federal government to punish blue states like Minnesota," he wrote. "These cuts will be devastating for veterans, families with young kids, folks with disabilities, and working people across our state." Oz said the money will be released after Minnesota enacts a "comprehensive corrective action plan to solve the problem." He said Walz would have 60 days to respond, per the Guardian, and advised health care providers and Medicaid beneficiaries who were concerned to contact Walz's office. Minnesota, which is dealing with allegations of major fraud involving day care centers, already has joined a suit against the administration for its threats to withhold money from programs designed to help low-income families. Medicaid provides health coverage to nearly 80 million lower-income Americans, including children, pregnant women, older adults, and people with disabilities.