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Minnesota Gov. Tim Walz accused the Trump administration of unleashing a “campaign of retribution” against his state after Vice President JD Vance announced a temporary pause in Medicaid funding there.
Vance’s announcement was made after President Donald Trump railed against fraud in Minnesota on Tuesday evening in his State of the Union address.
Vance said Wednesday that he is giving Walz 60 days to clean up how the state doles out funding, adding, “We are stopping the federal payments that will go to the state government until the state government takes its obligations seriously to stop the fraud that’s being perpetrated against the American taxpayer.”
“This is a campaign of retribution. Trump is weaponizing the entirety of the federal government to punish blue states like Minnesota,” Walz, a Democrat, wrote in response on X. “These cuts will be devastating for veterans, families with young kids, folks with disabilities, and working people across our state.”
Vice President JD Vance, left, Administrator for the Centers for Medicare & Medicaid Services Dr. Mehmet Oz, center, and Minnesota Gov. Tim Walz. (Tom Brenner/AP; Steve Karnowski/AP)
“This has nothing to do with fraud. The agents Trump allegedly sent to investigate fraud are shooting protesters and arresting children,” Walz added. “His DOJ is gutting the U.S. Attorney’s Office and crippling their ability to prosecute fraud. And every week Trump pardons another fraudster.”
Fox News Digital has reached out to the White House for comment.
The administration and Congress have zeroed in on rampant abuse of federal taxpayers’ funds since December 2025, when details of Minnesota’s fraud relating to social and welfare programs stretching back to the COVID-19 pandemic first came into the national spotlight. Investigators have since estimated the Minnesota scheme could top $9 billion.
HEAVILY REDACTED AUDIT FINDS MINNESOTA MEDICAID HAD WIDESPREAD VULNERABILITIES
Gov. Tim Walz has 60 days to respond to a letter from Mehmet Oz, administrator for the Centers for Medicare & Medicaid Services. (Jim Vondruska/Getty Images)
Mehmet Oz, the administrator for the Centers for Medicare & Medicaid Services, said Wednesday that the pause marks “the largest action against fraud that we’ve ever taken” at the federal agency, before launching into how the administration is deferring funds to the state.
“It’s going to be $259 million of deferred payments for Medicaid to Minnesota, which we’re announcing, as I speak, to Gov. Walz and his team,” Oz said. “That’s based on an audit of the last three months of 2025. Restated, a quarter billion dollars is not going to be paid this month to Minnesota for its Medicaid claims.”
Administrator for the Centers for Medicare & Medicaid Services Dr. Mehmet Oz speaks beside Vice President JD Vance during a news conference on efforts to combat fraud, in the Old Eisenhower Executive Office Building on the White House campus on Wednesday, Feb. 25, 2026. (Tom Brenner/AP)
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“We have notified the state and said that we will give them the money, but we’re going to hold it and only release it after they propose and act on a comprehensive corrective action plan to solve the problem,” Oz also said. “If Minnesota fails to clean up the systems, the state will rack up $1 billion of deferred payments this year.”
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