Vance says Minnesota’s Medicaid funds halted as part of Trump’s ‘war on fraud’
The Guardian World
by Lauren GambinoFebruary 26, 2026
AI-Generated Deep Dive Summary
Vice President Mike Pence announced on Wednesday that the Trump administration is temporarily halting over $250 million in Medicaid reimbursements to Minnesota. This move was described as part of President Donald Trump’s newly declared "war on fraud," aimed at addressing a fraud scandal linked to the Somali community in Minneapolis. The suspension of funds comes after federal immigration agents were deployed to the area, resulting in two U.S. citizen deaths and widespread protests.
The decision to halt Medicaid payments follows an investigation into fraudulent activity tied to residents of the Somali community in Minneapolis. This probe prompted the deployment of thousands of federal immigration agents, leading to significant unrest in the region. The administration claims the action is intended to ensure that Minnesota is a responsible steward of taxpayer money, though critics argue it may disproportionately affect vulnerable populations relying on Medicaid.
This development reflects a broader push by the Trump administration to tighten regulations and crack down on perceived fraud across various programs. While Minnesota was the first state targeted, officials have hinted that others could face similar scrutiny. This shift in policy could signal a broader effort to reevaluate federal healthcare funding and eligibility criteria nationwide.
Minnesota’s response has included legal challenges and calls for transparency regarding the fraud allegations. Advocacy groups warn that the halt in Medicaid funds could undermine access to critical healthcare services, particularly for low-income families and communities of color. The situation highlights ongoing tensions between federal and state authorities over immigration enforcement and healthcare policy.
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Originally published on The Guardian World on 2/26/2026