Trump Administration Suspends Minnesota Medicaid Funds Over Fraud Concerns

Wednesday, February 25, 2026 at 5:19 PM

Vice President JD Vance announced Wednesday that the federal government is suspending certain Medicaid payments to Minnesota. The action stems from allegations of fraudulent misuse of federal dollars designated for social welfare programs in the state.

WASHINGTON – Federal officials are withholding portions of Medicaid payments to Minnesota following allegations that federal money earmarked for social welfare programs has been stolen, Vice President JD Vance announced Wednesday.

The suspension of funding comes as the Trump administration investigates suspected fraudulent activity involving federal dollars meant to support the state’s Medicaid program.

Vance made the announcement from Washington on Wednesday, though additional details about the scope of the investigation or the specific amount of funding being withheld were not immediately provided.

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