Vice President J.D. Vance on Wednesday announced a freeze on $259 million in Medicaid payments to Minnesota, escalating tensions with the Democratic-led state a day after President Donald Trump tapped him to lead the “war on fraud.”
“ “We have decided to temporarily pause certain amounts of Medicaid funding that goes to the state of Minnesota,” Vance said at a news conference, referring to the U.S. health insurance program for low-income Americans. Mehmet Oz, director of the Centers for Medicare and Medicaid Services, said the federal government will freeze $259 million in payments to the state. The move follows repeated allegations by the Trump administration that public benefits fraud is widespread in Minnesota, allegations it links to the state’s Somali community.
Trump also criticized Somali immigrants in his State of the Union address on Tuesday, when he announced that Vance would take on the new role of fraud watchdog. Minnesota has the largest Somali community in the United States. The funding freeze will almost certainly face legal challenges, as have previous efforts by the Trump administration to withhold federal funds from states. The administration has also clashed with Minnesota over immigration enforcement.
In January, federal agents shot and killed two Americans during an immigration crackdown in the state. Vance’s appointment to lead anti-fraud efforts comes amid speculation that the 41-year-old may emerge as a front-runner for the 2028 Republican presidential nomination. However, this assignment places him on the list of US vice presidents assigned to politically sensitive positions. His predecessor, Kamala Harris, faced challenges after then-President Joe Biden asked her to address the root causes of migration from Central America.
