MN sues to block Trump admin's withholding of Medicaid funds - MinnPost
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By Lydia Moran
Published on March 3, 2026.
Minnesota has sued the Trump administration in an attempt to prevent it from withholding $243 million in Medicaid spending, warning it may have to cut health care for low-income families if the funding is held back. The lawsuit accuses the Department of Health and Human Services, Centers for Medicare and Medicaid Services, Dr. Mehmet Oz, and Robert F. Kennedy Jr. in his official capacity as CMS administrator, among others. The threatened cuts amount to roughly 7% of Minnesota’s quarterly Medicaid funding. The complaint alleges that the administration violated due process procedures by withholding hundreds of millions of dollars without proving Minnesota's noncompliance with Medicaid regulations through discovery and an evidentiary hearing. It also accuses the administration of imposing retroactive conditions on Minnesota's Medicaid funding and of a pattern of political punishment.
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