U.S. Vice-President says federal Medicaid payments to Minnesota paused amid fraud probe

The U.S. Department of Health and Human Services will temporarily suspend part of Minnesota’s Medicaid funding while federal officials investigate suspected fraud, Vice-President JD Vance said on Wednesday.

Vance described the step as part of a broader effort by the administration to address what it calls “waste, fraud and abuse” in federally supported programs. The funding pause affects certain federal matching dollars that help the state deliver Medicaid services to eligible residents.

Medicaid is the principal public health insurance program for low-income Americans. According to federal data, nearly 70 million people across the United States were enrolled in Medicaid as of late 2025, receiving coverage for primary care, prescription drugs and hospital stays.

Officials in Minnesota’s state government have not yet publicly detailed how the pause will affect services on the ground, but state leaders have previously defended the integrity of their Medicaid operations. The action comes amid heightened scrutiny of federal spending on healthcare and social safety-net programs.

The White House did not immediately release specifics on the alleged fraud or a timeline for restoring full funding, saying only that federal and state investigators are working together to review the matter.