Trump administration pauses some Medicaid funding to Minnesota, citing fraud concerns

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Source: STAT News

Original: https://www.statnews.com/2026/02/25/trump-administration-pauses-medicaid-funds-m...

Published: Thu, 26 Feb 2026 00:44:11 +0000

The Trump administration has suspended Medicaid funding for Minnesota, citing concerns about fraud, waste and abuse[1]. Administrator of the Centers for Medicare and Medicaid Services (CMS) Dr. Mehmet Oz announced that CMS will audit the state's quarterly Medicaid spending reports and suspend payments for 14 high-risk programs[1]. These 14 programs represent approximately $3.75 billion in annual federal and state funding[1]. The suspension affects more than $2 billion in annual Medicaid funding[2]. The Minnesota Office of Human Services had previously submitted a comprehensive corrective action plan, but CMS deemed it "deeply inadequate"[1]. The state of Minnesota has appealed the CMS decision, and the federal agency must now set a hearing date[2]. According to the state, the loss of more than $2 billion in annual funding would have catastrophic consequences for Minnesota's 1.2 million Medicaid members, nearly half of whom are children[2].