Federal judge denies Minnesota’s bid to block Trump administration withholding $243M in Medicaid funds
By Allison Kite
Published on April 7, 2026.
A federal judge has denied Minnesota's request to block the Trump administration from withholding $243M in Medicaid funds due to state fraud. The judge stated that the state has not yet proven that the administration has not followed the law. The federal government announced in February that it would withhold $259 million from Minnesota due to concerns about fraud in state social services programs. Minnesota's Attorney General Keith Ellison's lawsuit, filed by Tostrud, alleges that this is part of the "reckoning and retribution" promised by President Donald Trump. The funds will be reinstated once Minnesota provides a comprehensive corrective action plan.
Read Original Article