Vice President JD Vance and Centers for Medicare & Medicaid Services Administrator Mehmet Oz announced Wednesday that the Trump administration will temporarily halt certain Medicaid payments to Minnesota, citing concerns over fraud and oversight in the state's program.
"We have decided to temporarily halt certain amounts of Medicaid funding that are going to the state of Minnesota in order to ensure that the state of Minnesota takes its obligation seriously to be good stewards of the American people's tax money," Vance said during a press conference.
Oz emphasized that the administration's action is aimed at state leadership, not residents. "This is not a problem with the people of Minnesota. It's a problem with the leadership of Minnesota and other states who do not take Medicaid preservation seriously," he said.
Oz added that any disruption in services should be attributed to state officials. "Any delay in services is going to be, should be laid at the seat of Governor [Tim] Walz. I believe he will take this seriously," he continued.
The move marks the latest escalation in an ongoing clash between the Trump administration and Minnesota Gov. Walz, a Democrat, over allegations of fraud and mismanagement in state-run programs, including Medicaid.
Federal officials have argued that stronger safeguards and accountability measures are needed to prevent waste and abuse of taxpayer funds.
Minnesota officials have previously defended their oversight efforts and criticized federal actions they say could jeopardize healthcare access for vulnerable residents.
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