Latest State of the Union Fallout: Trump Blasts Democrats, Vance Moves to Suspend Minnesota Medicaid Payments
The latest developments from the State of the Union era have President Donald Trump sharply criticizing Democrats attending the address while Vice President JD Vance has been assigned to fight a declared "war on fraud, " a move that includes pausing certain federal Medicaid reimbursements to Minnesota. Tonight, President Trump addresses Congress in the State of the Union. Here's how to watch it live.
Latest: Vance launches into Trump's 'war on fraud' by suspending Medicaid payments to Minnesota
Vice President JD Vance got a new assignment Tuesday night: leading an effort described by the president as a "war on fraud" that was declared in the State of the Union. The role is framed as the latest addition to a portfolio that has already included efforts tied to saving TikTok from extinction in the U. S. and selling the administration's "One Big Beautiful Bill, " and it carries high expectations from the president, who pledged in his speech, "He'll get it done. "
What Vance and Mehmet Oz announced about Minnesota funding
Joined by Centers for Medicare & Medicaid Services Administrator Mehmet Oz, Vance announced a pause on federal Medicaid reimbursements to the state of Minnesota. The pause responds to an ongoing fraud probe that centers on day care centers and allegations of misuse of funds; that probe has become a rallying cause for Republicans. Vance said the pause is intended to ensure Minnesota acts as a steward of federal tax dollars.
Oz said the administration had notified Minnesota Governor Tim Walz, a Democrat, that the state would not receive a $259 million Medicaid reimbursement this month. Oz said that figure is based on an audit spanning the last three months of 2025, and that the withheld funds will be released only after Minnesota proposes a comprehensive corrective action plan. He warned that if Minnesota fails to address the issues, the state could rack up about a billion dollars in deferred payments this year. Oz added that Walz has 60 days to respond. Spokespeople for Walz, who was the Democratic nominee for vice president in 2024 and is a frequent target of criticism from the White House, did not immediately respond to requests for comment.
Governor Walz's response and concerns over impacts
Walz pushed back on the move on social media, writing that the action "has nothing to do with fraud" and accusing agents sent to investigate of shooting protesters and arresting children, while criticizing the Department of Justice and noting pardons for fraud-related offenders. He warned that the cuts would be devastating for veterans, families with young kids, people with disabilities, and working people across Minnesota.
Oz sought to reassure providers and beneficiaries, urging them to contact their governor about concerns and noting that the services in question had already been paid for by the state. He added that Minnesota has a rainy-day fund and expressed confidence that people would not be harmed by the pause in reimbursements.
Vance's legal confidence and the administration's rationale
Vance said he was quite confident the administration has the legal authority to withhold funds appropriated by Congress. He argued that while Congress appropriates money, the administration is responsible for ensuring that federal dollars reach the people they are intended for and not fraudsters. Vance emphasized that the administration does not want to withhold funds, but suggested the action is a lever to prompt corrective steps by the state. The final line of his public remarks in the provided context is truncated and unclear in the provided context.
Trump's State of the Union salvo and political reaction
President Donald Trump criticized Democrats who attended the State of the Union, framing their positions as harmful to the country. The president used the address to elevate the fraud initiative and to set expectations for immediate results if fraud can be uncovered, saying that finding enough fraud could yield a balanced budget overnight.
Sports and economic side notes tied to the moment
Separately, Richmond Federal Reserve President Tom Barkin said the back-and-forth over the president's tariffs is adding uncertainty for businesses and the economy. In sports coverage tied to the same timeframe, Quinn Hughes said the men's team was really happy that the women's team also won gold at the 2026 Winter Games, while the women's hockey team declined an invite because of a previous engagement. A Boston Bruins standout goalie emphasized that he and his teammates have so much respect for the gold medal-winning U. S. women's team.
On podcasts, hosts Jake Mintz and Jordan Shusterman were joined by Yuri Karasawa on a Baseball Bar-B-Cast episode to preview the international teams for the 2026 World Baseball Classic. On a Football 301 episode, Nate Tice and Matt Harmon, reporting from Indianapolis at the combine, examined star Buckeyes. In draft news, Rueben Bain Jr. could go as high as second overall in the NFL Draft, and Arvell Reese was noted as a versatile and productive player for Ohio State.
These disparate developments — political, fiscal and sporting — are converging around the State of the Union moment and are likely to shape both immediate headlines and near-term policy and political debates. Recent updates indicate actions and reactions are still unfolding; details may evolve.
