Under Title XIX of the Social Security Act the executive branch of the federal government is empowered to withhold Medicaid funds from a state following prior notice and a public hearing. At the Minnesota Star-Tribune Sydney Kashiwagi and Jessie Van Berkel report that the White House has “paused” Medicaid reimbursements to Minnesota:
The Trump administration announced Wednesday it plans to halt $259 million in Medicaid payments to Minnesota over concerns about fraud in the state’s social services programs, the latest chapter in the federal government’s crackdown on the state.
The announcement comes one day after President Donald Trump’s State of the Union address, where he zoomed in on fraud in Minnesota and announced Vice President JD Vance would be leading efforts to combat the issue. It also follows the wind-down of Operation Metro Surge, an immigration crackdown in the state initially prompted by allegations of fraud.
“A quarter billion dollars is not going to be paid this month to Minnesota for its Medicaid claims,” Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz said alongside Vance in a Washington, D.C., news conference.
The administration said it would withhold the funds until the Walz administration puts together a “comprehensive corrective action plan to stop the problem.”
I think that distinguishing between “pausing” and “withholding” is splitting hairs. Is this action substantively a withholding, regardless of the label? If the executive branch can avoid statutory procedural safeguards simply by relabeling a withholding as a “pause,” then the statutory protections are illusory. I have no objection to the administration’s investigation of Medicaid fraud in Minnesota but I do think it should follow the letter of the law, that is it should issue a warning and conduct a public hearing.







