Minnesota sues Trump administration over Medicaid funding pause

Minnesota Attorney General Keith Ellison is suing to block the Trump administration from maintaining its pause on $243 million in Medicaid funding to the blue state.

The federal lawsuit, filed Monday in the U.S. District Court in Minneapolis, alleges the withholding of federal healthcare funding is illegal and requests a temporary restraining order to block the pause.

The Democratic attorney general is concerned about how the funding pause will harm Minnesotans.

“The Trump Administration’s M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all,” he said in a statement. “These cuts are the latest in a long series of efforts to go around the law to punish Minnesotans — but just as we fought back and won when they illegally tried to cut funding for childcare, hungry families, and our schools, we are suing them again today to make them follow the law.”

Last week, Vice President JD Vance announced more than $259 million in Medicaid funding would be pulled from Minnesota over concerns that state officials weren’t doing enough to fight rampant fraud in the state’s social services programs. The Trump administration gave the state 60 days to respond.

One day after that announcement, Gov. Tim Walz (D-MN) unveiled a list of proposed antifraud legislation that would provide better detection and oversight, strengthen investigative and enforcement authority, and increase criminal penalties.

While verbally reprimanding the Trump administration, Walz suggested his state was complying with the demand for a comprehensive action plan to fight fraud.

The new lawsuit challenges $243 million of the total funding pulled.

Ellison touted his office’s track record in combating Medicaid fraud, pointing to more than 300 convictions and $80 million in judgments and restitution. By listing his accomplishments, Ellison is making the case that his office is doing more to fight Medicaid fraud than the federal government.

“Fighting fraud should be bipartisan, but the Trump Administration not only hasn’t helped the fight against fraud, they’ve actually harmed it,” he argued. “Trump’s attempts to look like he’s fighting fraud only punish the people and families who most need the high-quality, affordable healthcare that all Minnesotans deserve.”

STATES GAVE AT LEAST $380 MILLION IN MEDICAID DOLLARS TO SCHEMING SERVICE PROVIDERS

The Minnesota Department of Human Services joined Ellison in filing the lawsuit.

The defendants are Health and Human Services Secretary Robert F. Kennedy Jr., Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz, and their respective agencies.

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