Trump administration halts Minnesota Medicaid funds over fraud allegations
PBS News Hour - Segments
PBS NewsHour
4.1 • 1K Ratings
🗓️ 26 February 2026
⏱️ 6 minutes
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| 0:00.0 | Vice President J.D. Vance announced yesterday that the federal government would hold back |
| 0:04.8 | $259 million in Medicaid funding for Minnesota over fraud concerns. The state and its |
| 0:11.8 | welfare fraud scandals have become a target for the Trump administration, which deployed |
| 0:16.5 | thousands of immigration agents to the Twin Cities in recent months. The vice president spoke in neighboring Wisconsin today. |
| 0:22.6 | The job of your government is not to open your borders and allow fraudsters to come in and take advantage of you. |
| 0:29.6 | The job of your government is to shut the border and shut off the fraud. |
| 0:33.6 | And that's exactly what we're doing in the Trump administration. |
| 0:36.6 | Democrats, including Minnesota Governor Tim Wall, says the defunding was politically motivated. |
| 0:42.3 | The sense of retribution, no state has experienced this before. How does taking and punishing |
| 0:48.3 | children and elderly have anything to do with fighting fraud when that's not where this issue was taking place. |
| 0:56.5 | To break this all down, we're joined now by Matt Seppik, reporter from Minnesota Public Radio. |
| 1:01.2 | Matt, thanks for being with us. |
| 1:02.7 | And for folks who might be confused by some of this, first we should explain where exactly |
| 1:08.0 | do these fraud allegations stem from? |
| 1:10.2 | Well, they go back several years, and they really begin with a scandal known here as the |
| 1:16.6 | Feeding Our Future Fraud. In that case, dozens of people, 79 at last count, have been charged. |
| 1:24.9 | Most of them have already been convicted, and this began. It became public in |
| 1:29.6 | 2022 of stealing around $300 million from taxpayer-funded child nutrition programs. That investigation |
| 1:38.0 | has since morphed into Medicaid fraud, and that brings us to today, a former assistant U.S. attorney who |
| 1:47.1 | investigated this case estimated back in December that as much as $9 billion may have been stolen |
| 1:54.6 | from Minnesota's Medicaid program since 2018. So there is something to this. This $259 million figure, though, put that in the context |
| 2:04.1 | of how much money, Medicaid money, the state gets from the federal government. Well, Minnesota gets |
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