Latest: Vance Pauses $259 Million in Medicaid Reimbursements to Minnesota after Trump’s State of the Union Attack on Democrats
The latest development in Washington saw Vice President JD Vance announce a temporary halt to certain federal Medicaid reimbursements to Minnesota, a measure the administration tied to an audit and broader fraud concerns raised in President Donald Trump’s State of the Union. The pause — $259 million scheduled for this month — could cascade into as much as $1 billion in deferred payments for the state this year if corrective action is not proposed.
JD Vance launches a “war on fraud” after State of the Union
Vice President JD Vance was given a new assignment Tuesday night: to spearhead what the White House framed as a “war on fraud” following President Trump’s State of the Union address, in which the president blasted Democrats and pledged, “He’ll get it done, ” adding, “And if we’re able to find enough of that fraud, we will actually have a balanced budget overnight. ” Vance’s role is the latest addition to a portfolio that already included efforts to save TikTok from extinction in the U. S. and to sell Trump’s “One Big Beautiful Bill. ”
Latest: Minnesota notified of $259 million hold, Mehmet Oz outlines conditions
Centers for Medicare & Medicaid Services Administrator Mehmet Oz, standing with Vance at a Wednesday news conference, said the administration had notified Minnesota Governor Tim Walz that it would withhold a $259 million Medicaid reimbursement scheduled for this month. Oz said the figure is based on an audit covering the last three months of 2025. The funds, he said, will be released only after Minnesota proposes a comprehensive corrective action plan; if the state fails to clean up the systems, Oz warned, it could rack up a billion dollars of deferred payments this year. Oz added that Walz has 60 days to respond.
Governor Tim Walz pushes back on fraud characterization
Spokespeople for Governor Tim Walz — who was the Democratic nominee for vice president in 2024 and is a frequent target of White House criticism — did not immediately respond to requests for comment. After Vance’s and Oz’s remarks, Walz posted on X that the move “has nothing to do with fraud, ” accused agents sent to investigate of shooting protesters and arresting children, and said the Department of Justice is gutting the U. S. Attorney’s Office and crippling fraud prosecutions. He added that weekly pardons of fraudsters by the president and the funding cuts would be devastating for veterans, families with young kids, people with disabilities, and working people across Minnesota.
Vance and Oz defend legal authority and plan to hold funds
Vance, responding to a question from NBC News, said he was “quite confident” the administration had the legal authority to withhold funds appropriated by Congress. He argued that the administration spends the appropriated money and must ensure it goes to the people Congress intends, adding that the government should not send money to fraudsters. Oz urged worried providers and beneficiaries to contact their governor, noting that the services in question had already been paid for by the state and that Minnesota’s rainy-day fund made the administration confident that people would not be hurt. Vance also said the administration did not want to take this step but would “turn the screws” if a state was being careless with federal tax dollars; the remainder of that comment is unclear in the provided context.
State and national politics collide with sports and economic notes
The announcement landed on a night when the president was addressing Congress and criticizing Democrats for their attendance at the State of the Union. Outside the Capitol, a range of unrelated national conversations continued: Richmond Federal Reserve President Tom Barkin warned that back-and-forth over President Trump’s tariffs is adding uncertainty for businesses and the economy. A Presidents’ Day survey conducted by Yahoo and YouGov found respondents saying Trump is doing a worse job than Joe Biden and Barack Obama. In sports coverage tied to national moments, Quinn Hughes said the men’s team was “really happy” that the U. S. women also won gold at the 2026 Winter Games; the gold medal-winning U. S. women’s hockey team declined a State of the Union invite because of a previous engagement, and a Boston Bruins standout goalie said he and his teammates have “so much respect” for that women’s team.
Media and draft notes: podcasts, combines and prospects
Elsewhere in sports media, an episode of Baseball Bar-B-Cast featured Jake Mintz and Jordan Shusterman joined by Yuri Karasawa to preview the international teams for the 2026 World Baseball Classic. On the Football 301 podcast, Yahoo Sports’ Nate Tice and Matt Harmon — in Indianapolis at the combine — examined star Buckeyes. NFL draft chatter in the context included Rueben Bain Jr., who could go as high as second overall, and a note on Arvell Reese as a versatile and productive player for Ohio State.
What makes this notable is the timing: the administration’s enforcement action follows a high-profile presidential pledge framing fraud-finding as a route to rapid budget improvement, and it immediately places fiscal pressure on a politically prominent governor while raising the prospect of disrupted reimbursements for services already paid by the state.
