US Pauses $259M in Minnesota Medicaid Funding

The Trump administration has temporarily suspended $259 million in federal Medicaid funding to Minnesota, intensifying pressure over alleged misuse of social welfare funds.

Vice President JD Vance announced the funding halt on Wednesday, framing it as a measure to ensure the state properly manages taxpayer dollars. Mehmet Oz, head of the Centers for Medicare and Medicaid Services, confirmed that the payment freeze affects critical Medicaid support for low-income residents.

The action follows a high-profile immigration crackdown in Minneapolis linked to alleged fraud at Somali-run day care centers. The operation sparked widespread protests and resulted in the fatal shooting of two US citizens.

President Donald Trump highlighted the probe during his State of the Union address, assigning Vance to lead a national "war on fraud." The administration cited insufficient cooperation from Minnesota’s Democratic-led government as justification for the funding pause.

Governor Tim Walz condemned the move as politically motivated, warning that the freeze threatens essential services for veterans, families, and vulnerable populations across the state.