Vice President JD Vance said on February 25, 2026, in Washington, D.C., that the White House will hold back $259 million in Medicaid funds from Minnesota as part of President Donald Trump's new "war on fraud."
The head of the Centers for Medicare and Medicaid Services, Mehmet Oz, confirmed the hold is on improper payments in the program for low-income people.
The cuts in Minnesota Medicaid funds come from repeated claims of fraud by the Trump administration because of the state's large Somali population.
This follows Trump's State of the Union address and the appointment of Vance to head the war on fraud.
White House Cuts $259M in Medicaid Funds to Minnesota in 'War on Fraud'
VP JD Vance, tapped by President Trump post-State of the Union, declared the freeze at a news conference to halt "certain amounts" of Medicaid funding amid fraud probes.
The $259M targets alleged waste in Minnesota's program, home to the U.S.'s biggest Somali community.
Trump has blamed immigrants for benefit abuse, escalating after a January immigration raid shooting.
JD Vance Leads Medicaid Freeze
Freshly appointed to oversee fraud, 41-year-old Vice President JD Vance positions himself in Trump's aggressive cost-cutting push.
He joins past VPs like Kamala Harris on tough tasks, amid 2028 GOP speculation. Minnesota Democrats decry it as political payback over immigration clashes.
Minnesota Medicaid Payments Impact
The state loses funds for low-income care, sparking lawsuits as before under Trump. Somali leaders call claims baseless stereotypes; federal audits claim overpayments but lack community ties proof. Expect court battles delaying any permanent hold.
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This fraud war signals tougher audits nationwide – states brace for reviews. Minnesota fights back legally, while Trump pushes savings. Watch for rulings reshaping federal-state aid flows.
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