"The Trump administration's review of Minnesota's Medicaid spending in the fourth quarter of fiscal year 2025 showed $243.8 million in potentially fraudulent claims, and $15.4 million in claims for individuals who don't have satisfactory immigration status, CMS said. Medicaid providers in Minnesota have already been paid by the state, and CMS is now withholding the funding it would pay to the state for that quarter."
"The agents Trump allegedly sent to investigate fraud are shooting protesters and arresting children. His DOJ is gutting the U.S. Attorney's Office and crippling their ability to prosecute fraud. And every week Trump pardons another fraudster, Walz wrote, disputing the administration's fraud justification for the funding withholding."
"Minnesota Attorney General Keith Ellison said in a statement that he would take the administration to court if it's found to be unlawfully withholding money meant for low-income residents on Medicaid, signaling the state's commitment to challenging the federal action."
The Trump administration announced it would withhold approximately $515 million in federal Medicaid matching funds from Minnesota on a quarterly basis, citing the state's inability to control fraud in its safety net programs. The Health and Human Services Department identified $243.8 million in potentially fraudulent claims and $15.4 million in claims for individuals lacking satisfactory immigration status during the fourth quarter of fiscal year 2025. Minnesota has appealed the decision and threatened legal action. Governor Tim Walz disputed the fraud justification, arguing the administration's enforcement actions target vulnerable populations rather than addressing actual fraud. The withholding affects providers already paid by the state, with the federal government now refusing to reimburse those expenditures.
#medicaid-funding #federal-enforcement #fraud-allegations #minnesota-policy #immigration-enforcement
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