Dr. Oz freezes an additional $91 million in federal Medicaid funding for Minnesota

In a video announcement, CMS Administrator Dr. Mehmet Oz said the agency notified Gov. Tim Walz (D-MN) and state officials of the funding freeze following what he described as “serious red flags” in Minnesota’s administration of Medicaid funds. 

The action builds on roughly $250 million in federal Medicaid payments that were already deferred earlier this year as part of a broader audit and review by the task force to eliminate fraud, headed by Vice President JD Vance. 

“CMS is deferring an additional $91 million in federal Medicaid funding,” Oz said, calling the move “necessary” to ensure taxpayer dollars are properly spent. 

Oz said the latest action stems from expanded scrutiny after a federal audit of the fourth quarter of fiscal 2025 identified possible irregularities. He pointed to multiple concerns, including alleged fraud tied to childcare programs, vulnerabilities exposed in prior state scandals, and claims that individuals improperly accessed benefits. 

Oz said