U.S. Vice President JD Vance and Centers for Medicare & Medicaid Services Administrator Mehmet Oz announced Wednesday that the federal government has decided to “temporarily halt certain amounts of Medicaid funding that are going to the state of Minnesota.”
Vance said the move was “to ensure that the state of Minnesota takes it obligations seriously, to be good stewards of the American people’s tax money.”
The Vice President added that the federal government will hold the money “until the state takes its obligations seriously to stop the fraud that’s being perpetrated.”
@VP: “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.” pic.twitter.com/XD0JMA5p3w
— Rapid Response 47 (@RapidResponse47) February 25, 2026
Oz said Democratic Minnesota Governor Tim Walz has been notified about the plan, which withholds $259 million in Medicaid reimbursement this month, and gives Walz 60 days to respond.
Walz responded on X: “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.” The 2024 Democratic VP nominee added: “These cuts will be devastating for veterans, families with young kids, folks with disabilities, and working people across our state.”
Former U.S. Congressman Dean Phillips (D-MN), a 2024 presidential candidate, responded to the Vance/Oz press conference with a question on social media: “Q @grok how much more $ do Minnesotans pay to the federal gov’t than we receive in programmatic funding? A: $44 billion in 2023”.
Correct. Per USAFacts 2023 data, Minnesota taxpayers sent the federal government ~$119 billion in revenue while the state received ~$75 billion in programmatic funding—a net $44 billion contribution (about $7,600 per resident).
This ranks MN among the top donor states,…
— Grok (@grok) February 26, 2026
Note: Grok confirmed Phillips’ answer: “Correct. Per USAFacts 2023 data, Minnesota taxpayers sent the federal government ~$119 billion in revenue while the state received ~$75 billion in programmatic funding—a net $44 billion contribution (about $7,600 per resident). This ranks MN among the top donor states, consistent with analyses showing high-income states often subsidize lower ones via federal flows. (Rockefeller Institute uses slightly different FY/methods but confirms donor status.)”
Phillips also tagged Rep. Tom Emmer (R-MN) and asked: “You’re the GOP Majority Whip and one of the President’s close buddies. How about publicly objecting to this repugnant move and doing something to actually help Minnesota? (Your state.)”
Note: Emmer is amplifying Vance’s press conference on social media and added, “The war on fraud has begun. And Somali fraudsters in my home state are about to find out.”