Federal Crackdown Halts Minnesota Medicaid Funding Amid Nationwide Fraud Probe
February 26, 2026
A new nationwide fraud crackdown is underway as federal officials announce a pause on parts of Minnesota’s Medicaid funding to enforce spending rules and curb improper payments, with broader implications for other states.
CMS Administrator Dr. Mehmet Oz disclosed a six-month pause on new enrollments for durable medical equipment, prosthetics, and assistive devices under Medicare after identifying nearly $23 million in improper payments to suppliers from 2018–2024, largely before 2020 system changes.
The pause affects roughly $259.5 million in Medicaid funding and is framed as a leadership issue for Minnesota authorities rather than a reflection on beneficiaries.
The report appears in CNN Politics, anchored to a NewsNight panel discussion on the topic.
The piece raises questions about political targeting and fraud accusations but offers limited evidence in the excerpt.
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Kit Maher contributed to the reporting.
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The article notes that the U.S. does not have universal health coverage, unlike Germany.
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Summary based on 23 sources
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Sources

The Guardian • Feb 25, 2026
Vance says Minnesota’s Medicaid funds halted as part of Trump’s ‘war on fraud’
CNN • Feb 25, 2026
Trump admin halts Medicaid payments to Minnesota over fraud claims
