Minnesota Sues The Trump Administration Over Medicaid Amid Fraud Scandal
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The Trump administration cited widespread fraud in state social service programs. Minnesota officials said they were victims of “political punishment.”
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Advertisement SKIP ADVERTISEMENT Supported by SKIP ADVERTISEMENT Minnesota Sues Federal Government Over Withheld Medicaid Funds The Trump administration cited widespread fraud in state social service programs. Minnesota officials said they were victims of “political punishment.” Listen to this article · 3:17 min Learn more Share full article By Mitch Smith March 3, 2026, 10:52 a.m. ET Minnesota officials sued the Trump administration on Monday over a decision to withhold more than $200 million in Medicaid funds from the state, which has seen widespread fraud in social service programs . The lawsuit was the latest front in a wide-ranging legal clash between the state and the federal government, which have been at odds over immigration enforcement, election issues and how to respond to the fraud scandal. A recent deployment of thousands of immigration agents to Minnesota led to three shootings, thousands of arrests, and frequent clashes between agents and residents, all while state and federal officials accused their counterparts of illegal behavior. In the new lawsuit, Minnesota officials asked a judge to restore most of the $259 million in funding that the Trump administration cut off last week. The lawsuit, filed by Attorney General Keith Ellison’s office, said that the federal government had “weaponized Medicaid against Minnesota as political punishment.” Vice President JD Vance said last week that he felt “quite confident that we have the authority to do this,” adding that the Trump administration had to “turn the screws on them a little bit so they take this fraud seriously.” Officials with the federal Centers for Medicare and Medicaid Services and the Department of Health and Human Services, both of which were named as defendants, did not immediately respond to a request for comment on the lawsuit, which was filed in Federal District Court in Minnesota. The federal government singled out Democratic-led Minnesota for greater scrutiny last fall as the scope of fr...
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