Vice President JD Vance announced a massive strike against government corruption Wednesday, confirming the Trump administration will withhold nearly $260 million in Medicaid reimbursements from the Democrat-led state of Minnesota.
Following the president’s “War on Fraud” declaration during the State of the Union, Vance and CMS Administrator Dr. Mehmet Oz revealed that the federal government is putting a stop to payments until Governor Tim Walz addresses “systemic” malpractice. The freeze targets 14 specific state programs, including autism services and medical transports, which the administration believes have been used to make “fraudsters rich” at the expense of American families.
“What we’re doing is we’re stopping the federal payments that will go to the state government until the state government takes its obligations seriously to stop the fraud,” Vance declared during a high-stakes press conference. He clarified that since the state has already paid providers on the ground, the freeze targets the government’s coffers rather than the beneficiaries themselves.
Dr. Oz warned that if Minnesota fails to “clean up the systems,” the state could rack up a staggering $1 billion in deferred payments by the end of the year.
The crackdown follows a series of explosive investigations into Minnesota’s “Feeding Our Future” scandal and suspected fraud within the state’s Somali immigrant communities. Dr. Oz detailed a “vicious” scheme where mothers are allegedly paid $1,000 to falsely enroll children as autistic so Medicaid can be billed for millions in “services that were never rendered.”
These operations often target immigrant communities to “divert resources” away from children who truly need help. Independent reports have also highlighted “ghost” daycare centers in the Minneapolis area that receive state funding despite appearing to serve zero children.
Vance has given Governor Walz a 60-day window to respond to the administration’s letter and prove that Minnesota can be a “good steward” of taxpayer money. Dr. Oz noted that Minnesota’s “rainy-day fund” is more than sufficient to cover the lapse, meaning any service interruptions would be a failure of state leadership rather than federal policy. “If providers and beneficiaries are worried about getting their money and services, please call your governor,” Oz stated, placing the burden of “Medicaid preservation” squarely on the shoulders of the Walz administration.
The “War on Fraud” is being described as the largest effort of its kind in the history of the Centers for Medicare & Medicaid Services. The Trump administration is using these “unilateral” fiscal tools to ensure that “biological truth” and accountability return to the welfare system. By targeting “scoundrels” who siphoned off pandemic-era funds, the vice president aims to protect the “American Manufacturing Renaissance” from being undermined by “clunky” and corrupt state bureaucracies.
As the 60-day clock begins to tick, the administration is signaling that other “sanctuary” states may soon face similar scrutiny. For Vance, the mission is a “common sense” defense of the American taxpayer against “deranged” levels of government waste. While the “radical-left” in St. Paul rages against the freeze, the White House remains focused on its “day one” priority: ensuring that every dollar meant for American citizens actually reaches them.