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Minnesota Sues Trump Administration Over $243M Medicaid Funds

3/6/2026

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Minnesota Sues Trump

Minnesota filed a federal lawsuit accusing the U.S. President Donald Trump administration of withholding $243 million in Medicaid over alleged fraud.
The state cites a 2% Medicaid payment error rate, well below the national average.
Governor Tim Walz (D-Minn.) and Attorney General Keith Ellison (D-MN) call the actions unprecedented and harmful.
The Trump administration has expanded scrutiny to New York, threatening funding cuts over Medicaid concerns.

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GOP Investigates Medicaid Fraud

The House committee is investigating Medicaid fraud in ten states, including New York and California.
Republican leaders (GOP) have sent records requests to state officials citing multimillion-dollar misappropriations.
In Minnesota, Optum has received over $18.8 million to assess Medicaid vulnerabilities, while much of its audit report remains redacted.
The audit found that over 90% of autism service provider claims did not comply with state policies, prompting calls for full release.

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Minnesota Sues Trump

Minnesota filed a federal lawsuit accusing the U.S. President Donald Trump administration of withholding $243 million in Medicaid over alleged fraud.
The state cites a 2% Medicaid payment error rate, well below the national average.
Governor Tim Walz (D-Minn.) and Attorney General Keith Ellison (D-MN) call the actions unprecedented and harmful.
The Trump administration has expanded scrutiny to New York, threatening funding cuts over Medicaid concerns.

1 / 2