Vance launches into Trump's 'war on fraud' by suspending Medicaid payments to Minnesota
The announcement came a day after Trump announced the vice president would take on a new role leading the administration's anti-fraud efforts.1/2
Feb. 25, 2026, 6:27 PM EST / Updated Feb. 25, 2026, 6:44 PM EST
WASHINGTON — Vice President JD Vance got a new assignment Tuesday night: fighting a “war on fraud” that President Donald Trump declared in his State of the Union address.
It’s the latest addition to a portfolio that has included saving TikTok from extinction in the U.S. and selling Trump’s “One Big Beautiful Bill” — and it comes with Trump’s high expectations.
“He’ll get it done,” Trump pledged in his speech. “And if we’re able to find enough of that fraud, we will actually have a balanced budget overnight.”
Vance, joined by Centers for Medicare & Medicaid Services Administrator Mehmet Oz, announced the opening salvo in the effort Wednesday: .a pause on federal Medicaid reimbursements to Minnesota. The state is subject to an ongoing fraud probe involving day care centers and allegations of misuse of funds that has become a rallying cause for Republicans.
“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 at an afternoon news conference.
Oz said the Trump administration had notified Minnesota Gov. Tim Walz, a Democrat, of its plan,which would keep the state from receiving a $259 million Medicaid reimbursement this month. The figure, Oz said, is based on an audit over the last three months of 2025.
“We will give them the money, but we’re going to hold it and only release it after they propose an act on a comprehensive corrective action plan to solve the problem,” Oz said. “If Minnesota fails to clean up the systems, the state will rack up a billion dollars of deferred payments this year.”
Oz added that Walz has 60 days to respond. Spokespeople for Walz — who was the Democratic nominee for vice president in 2024 and is a frequent target of White House criticism — did not immediately respond to requests for comment.
But in a post on X Wednesday after Vance and Oz's remarks,Walz responded, "This has nothing to do with fraud. The agents Trump allegedly sent to investigate fraud are shooting protesters and arresting children. His DOJ is gutting the U.S. Attorney’s Office and crippling their ability to prosecute fraud. And every week Trump pardons another fraudster."
"These cuts will be devastating for veterans, families with young kids, folks with disabilities, and working people across our state," he added.
“If providers and beneficiaries are worried about getting their money and services, please call your governor,” Oz said. “These are services the governor has already paid for. We are just not reimbursing the state. To make it clear, there is a rainy-day fund in Minnesota, so we are very confident that people will not be hurt in Minnesota.”
Vance, responding to a question from NBC News, saidhe was “quite confident” the administration had the legal authority to withhold funds appropriated by Congress.
https://www.nbcnews.com/politics/jd-vance/vance-trump-war-fraud-suspending-medicaid-payments-minnesota-rcna260655