Trending Now - Minnesota Files Lawsuit Over Withheld $243M in Medicaid Funds
WHO:
Minnesota Attorney General Keith Ellison
President Trump
Vice President JD Vance
Dr. Mehmet Oz, CMS Administrator
Robert F. Kennedy Jr., HHS Secretary
Centers for Medicare and Medicaid Services (CMS)
U.S. Department of Health and Human Services (HHS)
WHAT:
Minnesota filed a federal lawsuit against the Trump administration on March 2, 2026.
The lawsuit accuses the Trump administration of illegally withholding $243 million in Medicaid payments.
Minnesota is seeking a temporary restraining order to block the withholding of funds.
The lawsuit claims the funding freeze violates federal law and due process.
The Trump administration announced it would withhold over $2 billion annually from Minnesota’s Medicaid program due to alleged noncompliance with federal regulations.
CMS deferred approximately $260 million in quarterly federal Medicaid funding to Minnesota, including the $243 million tied to "unsupported or potentially fraudulent" claims.
WHERE:
The lawsuit was filed in a U.S. court in Minneapolis, Minnesota.
WHEN:
The lawsuit was filed on March 2, 2026.
The announcement from CMS regarding the funding deferral occurred on February 25, 2026.
The notice of withholding over $2 billion annually was issued in January 2026.
WHY:
The Trump administration cited "noncompliance" with federal regulations and alleged failures to address fraud in Minnesota's Medicaid program as reasons for withholding funds.
Minnesota officials argue that the funding deferral improperly uses a funding mechanism and denies due process.
HOW:
The lawsuit alleges that the Trump administration failed to provide specific details on Minnesota's noncompliance and did not follow due process procedures.
The administration's actions are described as part of a broader fraud crackdown, using a "detect and deploy" strategy to identify fraud.
ADDITIONAL FACTS:
The threatened cuts represent about 7% of Minnesota’s quarterly Medicaid funding.
Medicaid, known as Medical Assistance in Minnesota, provides health insurance to 1.2 million Minnesotans.
A family of four may qualify for Medical Assistance with an income at or under $42,759.
Attorney General Keith Ellison stated, "Trump's M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all."
Minnesota Attorney General Keith Ellison announced that the state has filed a federal lawsuit against Trump on March 2, 2026, accusing his administration of illegally withholding $243 million in Medicaid payments. The lawsuit, filed in a U.S. court in Minneapolis, seeks a temporary restraining order to block the funding freeze, which Minnesota officials argue violates federal law and due process. This funding deferral, part of a broader crackdown on alleged fraud, threatens to cut about 7% of Minnesota's quarterly Medicaid funding, impacting health insurance for 1.2 million residents.