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"The Constitution clearly gives Congress the power to spend taxpayer funds, and no law allows the president to halt if he feels some US states aren’t being 'good stewards' of the money," said one critic.
US Vice President JD Vance said Wednesday that the Trump administration will pause some Medicaid funding for Minnesota over fraud concerns—without offering any guarantees that the suspension will not adversely impact the more than 1 million Minnesotans who depend upon the key healthcare program.
"We're announcing today that we have decided to temporarily halt certain amounts of Medicaid funding that is going to the state of Minnesota in order to ensure that the state of Minnesota takes its obligations seriously to be good stewards of the American people's tax money," Vance said at a White House press conference with Centers for Medicare and Medicaid Services (CMS) Administrator Mehmet Oz.
"Now what is this gonna mean?" Vance continued. "What this means is that, first of all, the providers on the ground in Minnesota have actually already been paid... What we're doing is we are stopping the federal payments that will go to the state government until the state government takes it obligations seriously to stop the fraud that's being perpetrated."
They already targeted SNAP in Minnesota. They’ve killed two Minnesotans and injured or kidnapped hundreds more. Now they’re stealing their Medicaid. They’re going to deny people healthcare because of a YouTube video about a Somali daycare scam that wasn’t even true.
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— Kelly (@broadwaybabyto.bsky.social) February 25, 2026 at 3:05 PM
Oz demanded that Democratic Minnesota Gov. Tim Walz determine "who these providers are; make sure they're not already in trouble for doing bad stuff, and then reevaluate all the current providers to make sure they're supposed to be able to provide these services."
Responding to Oz's remarks, Gaia Leadership Project founder Elizabeth Cronise McLaughlin said on Bluesky, "So Minnesota is supposed to review every appointment by a Medicaid recipient with every doctor to get funds already lawfully allocated to the state?"
Asked by a reporter how he intends to ensure that the funding pause "doesn't impact the people who are enrolled in Medicaid," Vance said he is "worried about the justice of it all."
"I think it's offensive that American taxpayers pay into these programs and they're defrauded... and it's really sad that American children who need these services are unable to get them, because they're going to fraudsters," Vance replied.
"Look, we're certainly gonna make sure that our anti-fraud efforts go after the fraudsters and not after anybody who actually benefits from these services," he continued. "But I actually think the question is a little off, in a way, because the problem is not going after the fraud, the problem is that these programs are being defrauded to begin with."
"Our social safety net will disappear unless we take fraud more seriously," added the vice president, whose boss, President Donald Trump, last year signed into law the biggest cuts to Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, in the nation's history as part of the One Big Beautiful Bill Act.
Medicaid is the primary healthcare safety net for lower-income Americans, with nearly 70 million people enrolled nationwide at the end of last year.
While federal prosecutors are investigating Minnesota’s Medicaid system—specifically, 14 high-risk service programs such as housing support and personal-care services—on suspicion of billions of dollars in fraudulent billings since 2018, and dozens of people have been convicted of stealing public money through the state’s social services system, critics noted that Congress, not the president, has the power of the purse.
Some observers noted that Trump has already targeted Minnesota—which voted against him all three times he ran for president—with his deadly crackdown on undocumented immigrants and their defenders and racist attacks on Somali immigrants, including Congresswoman Ilhan Omar (D-Minn.).
The Medicaid freeze follows the Trump administration's $10 billion cut in federal childcare funding to five Democrat-led states, including Minnesota, last month—a move that opponents argue punishes working families who committed no fraud.
University of Illinois professor Nicholas Grossman called the Medicaid pause "taxation without representation."
"The Constitution clearly gives Congress the power to spend taxpayer funds, and no law allows the president to halt if he feels some US states aren’t being 'good stewards' of the money," he said on Bluesky. "In case there’s any confusion on this, the Impoundment Control Act forbids it."
"The people of Minnesota vote for representatives to Congress," Grossman added. "Minnesota representatives and senators were in DC, representing their constituents, when Congress passed laws using proper procedure that allocated Medicaid funding. The president breaking those laws violates the fundamental compact of the republic."
Oz on Wednesday also announced "a six-month national moratorium blocking all new enrollments for durable medical equipment—prosthesis, orthotics—supplies across the board" in the name of fighting fraud. The move targets suppliers, not individual Medicaid beneficiaries.
This from Oz, a promoter of privatized Medicare Advantage programs, which are notorious for overcharging taxpayers and denying patients necessary care. The CMS under Oz increased federal funding for Medicare Advantage plans by more than $25 billion for 2026.
As Common Dreams recently reported, United Health Group (UHG), one of the country's largest for-profit health insurance companies, has been the leading beneficiary of a long-running Medicare Advantage fraud scheme that the Medicare Payment Advisory Commission—an independent, nonpartisan legislative branch agency—warned could cost US taxpayers $1.2 trillion over the next decade.
Some critics said that if Trump really cared about fraud, he'd go after companies like UHG—and stop pardoning so many convicted criminals who committed billions of dollars worth of fraud.
"These guys are despicable," Michigan State University professor Brendan Cantwell said Wednesday in response to Vance and Oz's announcement.
Robert Weissman, co-president of the consumer advocacy group Public Citizen, said in a statement Wednesday that “Medicaid fraud is a serious problem that requires cracking down on fraudsters—not patients."
Weissman continued:
This administration’s anti-fraud rhetoric is itself a fraud. In fact, the administration has gutted anti-fraud government agencies and programs and let fraudsters off the hook. It has issued record-breaking pardons to fraudsters; sought to eliminate the most important anti-consumer fraud agency, the Consumer Financial Protection Bureau; eviscerated the corps of inspectors general whose job is to root out waste, fraud, and abuses; and dropped dozens of fraud and fraud-related investigations against large corporations.
“The Trump administration suspension of Medicaid funding in Minnesota is a bad-faith, punitive, and shameful measure that will punish people in Minnesota as part of the same deceptive story that the Trump administration has told to justify the outrageous [Immigration and Customs Enforcement] invasion of the state," Weissman added.
"The Trump administration is sending a clear message: federal law enforcement can kill with absolute impunity."
A broad coalition of organizations on Tuesday accused the Trump administration of trying to sabotage a genuine investigation into the killing of Alex Pretti, the intensive care nurse who was fatally shot by federal immigration enforcement agents last month.
In a statement released by the Not Above the Law Coalition, the groups pointed to recent reporting about the FBI denying Minnesota law enforcement officials access to evidence gathered in relation to the Pretti shooting as proof that the administration has no intention of conducting an independent investigation into his death, which has been ruled a homicide by the Hennepin County medical examiner.
"By blocking Minnesota's investigation and attempting to shield agents from accountability," said the groups, "the Trump administration is sending a clear message: federal law enforcement can kill with absolute impunity. This move attempts to place federal agents above the law and beyond the reach of justice."
The groups noted that the administration was breaking with decades of standard practices by not cooperating with local police and prosecutors to investigate Pretti's death, and they warned it could set a dangerous precedent for future shootings carried out by federal officers.
"We demand immediate action," they concluded. "Mandatory independent investigations for all federal use of deadly force, recognition of state authority to investigate federal misconduct, federal cooperation with local investigators, and real consequences for constitutional violations. Without accountability, we allow federal forces to operate with impunity and face no consequences for taking American lives."
Included among the statement's signatories were the ACLU, Citizens for Responsibility and Ethics in Washington, Common Cause, Indivisible, Public Citizen, and the Revolving Door Project.
The Minnesota Bureau of Criminal Apprehension (BCA) said last week that it was continuing its probe into Pretti's killing, even without the assistance of federal investigators.
“The BCA will present its findings without recommendation to the appropriate prosecutorial authorities for review," the agency vowed.
In addition to investigating the Pretti killing, the BCA is also conducting probes into the fatal shooting of Minneapolis mother Renee Good and the shooting of Venezuelan immigrant Julio Cesar Sosa-Celis.
Hennepin County Attorney Mary Moriarty last week similarly said that her office was not getting any help from the federal government in its investigation into the Pretti shooting, though she said her team was continuing to gather evidence and interview witnesses.
Moriarty emphasized that her office, which is currently working with the Minnesota BCA in its investigation, can bring criminal charges against federal immigration officers if it has enough evidence to do so, even without the cooperation of the Trump administration.
"You cannot invite people under one set of rules and move the goalposts after they arrive," said one group, calling for "lawful, humane, consistent treatment of refugees and allies."
Rights advocates are sounding the alarm over a new US Department of Homeland Security memorandum that puts legal refugees across the United States at risk of arrest as part of President Donald Trump's sweeping anti-immigrant agenda.
The US Department of Justice submitted the memo to a federal judge in the lead-up to a Thursday preliminary injunction hearing about DHS arrests of refugees in Minnesota, where Trump recently sent thousands of immigration agents who were subsequently accused of various acts of violence, including fatally shooting citizens Renee Good and Alex Pretti.
The document was first reported on Wednesday by Law Dork's Chris Geidner, who has unsuccessfully fought to make such filings available remotely. Right now, for this case, they are only available at the federal courthouse in Minnesota.
While the Trump administration claims it is ending "Operation Metro Surge" and removing most Customs and Border Protection (CBP) and Immigration and Customs Enforcement (ICE) agents who have terrorized the Twin Cities, the arrest policy detailed in the memo overhauls a long-standing interpretation of federal law for the entire country.
As American Immigration Council senior fellow Aaron Reichlin-Melnick laid out on social media Thursday: "Refugees are people vetted overseas by US Refugee Officers through an often yearslong process. They enter the country legally and on a path to citizenship. Refugees are required to apply for a green card one year after they arrive, but they CANNOT apply earlier than that."
The Wednesday memo from US Citizenship and Immigration Services Director Joseph Edlow and ICE acting Director Todd Lyons states that after being in the country for a year, refugees "must return, or be returned," to DHS custody "for inspection and examination for admission" as a green-card holder, officially called a lawful permanent resident.
"If the refugee does not voluntarily return, DHS will return the individual to custody (i.e., arrest and detain) for this purpose... DHS may maintain custody for the duration of the inspection and examination process," the memo continues, adding that the detention period "is not indefinite, but also is not limited to merely 48 hours."
Krish O'Mara Vignarajah, president and CEO of Global Refuge, declared in a Thursday statement that "this unprecedented policy weaponizes a routine administrative milestone as a pretext for detention."
"These are families the United States government already screened more rigorously than any other category of immigrant," she stressed. "Only after years of background checks, biometric screenings, and in-person interviews were they invited to rebuild their lives here. To now subject them to arrest and open-ended detention is a stunning betrayal of both our legal commitments and our moral compass."
DHS is claiming—in the memo and on social media, in response to new reporting—that the Refugee Act of 1980 requires the policy. Reichlin-Melnick emphasized that "reaching this conclusion required overturning decades-old interpretations."
"In a section of the memo that is truly Orwellian, the Trump [administration] says it's REFUGEES who have a 'misguided belief' about the law—even though its policy is a brand new interpretation of a 45-year-old law—and so it's THEIR fault they're traumatized when ICE comes to jail them," he noted.
"Making matters worse, the Trump [administration] is REFUSING to adjudicate green-card applications for refugees who come from one of the 39 countries Trump banned," Reichlin-Melnick added. "So under this policy, a refugee who applies for a green card exactly on time, doing nothing wrong, can be jailed by ICE."
The International Refugee Assistance Project is representing refugees in the Minnesota case. IRAP's vice president of US legal programs, Laurie Ball Cooper, told CNN that "this memo is part of a broad and concerted effort to strip refugees of their legal status and render them deportable... This government will clearly stop at nothing to terrorize refugee communities, and really all immigrants, while trampling over our constitutional rights."
Beth Oppenheim, CEO of HIAS, the world's oldest refugee agency, agreed that "this policy is a transparent effort to detain and potentially deport thousands of people who are legally present in this country, people the US government itself welcomed after years of extreme vetting."
"I have never seen anything like this in my 25 years of refugee protection work," Oppenheim said. "This memo was done in secret, with zero coordination with the organizations that serve refugees. It is a betrayal of our values and our legal commitments, and it will cause extraordinary harm."
Vignarajah also described the memo as "a broad attempt to redefine refugee status as conditional and revocable at will," and argued that "you do not welcome families fleeing war and persecution under one set of rules and then move the goalposts after they arrive."
Calling for "lawful, humane, consistent treatment of refugees and allies," AfghanEvac similarly said on social media that "you cannot invite people under one set of rules and move the goalposts after they arrive."