{"id":2588134,"date":"2026-04-07T15:52:02","date_gmt":"2026-04-07T19:52:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/judge-allows-trump-administration-to-withhold-minnesotas-medicaid-funds\/"},"modified":"2026-04-07T15:55:06","modified_gmt":"2026-04-07T19:55:06","slug":"judge-allows-trump-administration-to-withhold-minnesotas-medicaid-funds","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/judge-allows-trump-administration-to-withhold-minnesotas-medicaid-funds\/","title":{"rendered":"Judge allows Trump administration to withhold Minnesota\u2019s Medicaid funds"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fjudge-allows-trump-administration-to-withhold-minnesotas-medicaid-funds%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2588134&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A federal judge, Eric Tostrud, rejected Minnesota\u2019s bid for a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/breaking-georgia-update-judge-issues-restraining-order-for-10-days-preventing-defendants-from-destroying-or-erasing-dominion-voting-machines\/\" title=\"BREAKING GEORGIA UPDATE: Judge Issues Restraining Order for 10 Days Preventing Defendants from Destroying or Erasing Dominion Voting Machines\">temporary restraining order<\/a> and an <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-judge-orders-biden-administration-to-cooperate-in-social-media-collusion-lawsuit\/\" title=\"... Orders ...en Administration to Cooperate in Social Media Collusion Lawsuit\">expedited preliminary injunction<\/a> to stop the Trump governance\u2019s deferral of more than $243 million in Medicaid funds to Minnesota while an administrative review is ongoing. Minnesota, led by Attorney General Keith Ellison, had sued the Centers for Medicare and Medicaid Services (CMS) in Minnesota v. Oz after CMS paused payments following concerns of fraud in the state\u2019s Medicaid programme. Judge Tostrud held that the deferral process had not reached a final determination and that courts typically intervene only after final agency action; he noted CMS identified questionable billing and requested supporting documentation rather than concluding claims would be disallowed. While Minnesota acknowledges a fraud problem and criticized the deferral as unprecedented and potentially damaging to the state budget, the judge saeid the deferral likely complies with federal regulations, and the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/final-deadline-passes-sheriffs-department-chasing-new-leads-in-nancy-guthrie-case\/\" title=\"Final Deadline Passes: Sheriff&#039;s Department Chasing &#039;New Leads&#039; in Nancy Guthrie Case\">case remains unresolved<\/a>.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<p><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><?xml encoding=\"utf-8\" ?><\/p>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-header-search-button-mob dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-mobile-search-icon td-icon-search\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><span class=\"tdb-mobile-menu-button\"><i class=\"tdb-mobile-menu-icon td-icon-mobile\"><\/i><\/span><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div class=\"tdb-drop-down-search\" aria-labelledby=\"td-header-search-button\">\n<div class=\"tdb-drop-down-search-inner\">\n<form method=\"get\" class=\"tdb-search-form\" action=\"https:\/\/www.washingtonexaminer.com\/\"><\/form>\n<div class=\"tdb-aj-search\"><\/div>\n<\/div>\n<\/div>\n<p><a href=\"http:\/\/www.washingtonexaminer.com\/#\" role=\"button\" aria-label=\"Search\" class=\"tdb-head-search-btn dropdown-toggle\" data-toggle=\"dropdown\"><i class=\"tdb-search-icon td-icon-search\"><\/i><\/a><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<h1 class=\"tdb-title-text\">&lsquo;Serious fraud problem&rsquo;: Judge allows Trump administration to withhold Minnesota&rsquo;s Medicaid funds<\/h1>\n<div><\/div>\n<div class=\"tdb-title-line\"><\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\">\n<div id=\"Brid_2547459\" class=\"tpd-featured-video bridtv\"><\/div>\n<p>A federal judge has rejected the <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/Minnesota\/\">Minnesota<\/a> government&rsquo;s request to stop the Trump administration from halting more than $243 million in <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/tag\/Medicare-and-Medicaid\/\">Medicaid<\/a> funds from flowing to the fraud-fraught state pending an administrative review.<\/p>\n<p>Judge Eric Tostrud, an appointee of President Donald Trump, denied the state&rsquo;s motions for a temporary restraining order and an expedited preliminary injunction on Monday, <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.mnd.232324\/gov.uscourts.mnd.232324.43.0.pdf\">ruling<\/a> that Minnesota officials prematurely filed the lawsuit before any Medicaid cuts were finalized.<\/p>\n<p>Minnesota Attorney General Keith Ellison, a Democrat, <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.ag.state.mn.us\/Office\/Communications\/2026\/03\/03_Medicaid-Funding.asp\">sued<\/a> the Centers for Medicare and Medicaid Services in early March after the Trump administration paused the state&rsquo;s Medicaid payments following rampant theft of Medicaid dollars from the state-administered social services programs.<\/p>\n<div class=\"article-paywall\">\n<p>CMS had initiated an administrative process through which Minnesota submits documentation showing that the deferred amounts would be paid out to legitimate reimbursement claims. During the back-and-forth verification process, Minnesota does not have access to these funds.<\/p>\n<p>Ellison brought the case, <em>Minnesota v. Oz<\/em>, to require CMS to restore Minnesota&rsquo;s Medicaid funding in the interim, claiming that the funding freeze is an act of political retribution against the state under the pretense of fraud prevention.<\/p>\n<p>Tostrud ruled this week that a federal court ordinarily only intervenes when an agency&rsquo;s action is final and noted that even &ldquo;Minnesota has recognized it has a serious fraud problem.&rdquo;<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/policy\/healthcare\/4491949\/walz-state-takeover-medicaid-funds\/\"><strong>WALZ PROPOSES STATE TAKEOVER OF MEDICAID FUNDS WITH AGENCY RESPONSIBLE FOR FRAUD CRISIS<\/strong><\/a><\/p>\n<p>&ldquo;Minnesota&rsquo;s request for a preliminary injunction depends on assuming that predicted future events come to pass,&rdquo; Tostrud wrote. &ldquo;As a rule, the law does not allow a preliminary injunction to be issued based on assumptions like these.&rdquo;<\/p>\n<p>The deferral proceedings that Minnesota is challenging &ldquo;just started,&rdquo; Tostrud said, and have not reached a determination on whether the flagged funds can or cannot be disbursed.<\/p>\n<p>CMS&rsquo;s Feb. 25 deferral notice simply identified questionable billing from certain care providers and asked that Minnesota accordingly provide documentation to support the disbursement of the funds in question.<\/p>\n<p>&ldquo;CMS, in other words, identified concerns and requested documents,&rdquo; Tostrud continued. &ldquo;It did not express a conclusion that these claims or any part of them would be disallowed.&rdquo;<\/p>\n<p>Tostrud, however, acknowledged that &ldquo;Minnesota credibly complains that the federal government&rsquo;s deferral is historically unprecedented in its size and timing,&rdquo; though he concluded that the deferral likely complies with federal regulations.<\/p>\n<p>In its complaint, <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.mnd.232324\/gov.uscourts.mnd.232324.4.0_1.pdf\" type=\"link\" id=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.mnd.232324\/gov.uscourts.mnd.232324.4.0_1.pdf\">Minnesota asserted<\/a> that deferrals typically serve as an auditing tool focused on a specific claim, &ldquo;not  &hellip; wide swaths of Medicaid funding,&rdquo; and that it was unusual for CMS to withhold and defer funding at the same time, especially with regard to a single state.<\/p>\n<p>&ldquo;Unless the deferral is quickly reversed, the state will be irreparably harmed,&rdquo; <a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.mnd.232324\/gov.uscourts.mnd.232324.1.0_2.pdf\" type=\"link\" id=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.mnd.232324\/gov.uscourts.mnd.232324.1.0_2.pdf\">Ellison&rsquo;s office claimed<\/a>. &ldquo;The administration has already stated that the deferral will recur every quarter, crippling the state budget.&rdquo;<\/p>\n<p>Tostrud countered that federal regulations do not limit the amount of money that can be deferred at once, nor do they prohibit CMS from pursuing deferrals and payment pauses concurrently against one state.<\/p>\n<p>The judge also addressed previous remarks from Vice President JD Vance, the Trump administration&rsquo;s &ldquo;fraud czar,&rdquo; who said the federal government had to &ldquo;turn the screws on [Minnesota] so that they take this fraud seriously.&rdquo;<\/p>\n<p><a target=\"_blank\" rel=\"noopener noreferrer\" href=\"https:\/\/www.washingtonexaminer.com\/news\/investigations\/4399944\/how-minnesota-somali-fraud-industrial-complex-stolen-millions-medicaid\/\"><strong>HOW MINNESOTA&rsquo;S SOMALI FRAUD INDUSTRIAL COMPLEX HAS STOLEN MILLIONS FROM MEDICAID<\/strong><\/a><\/p>\n<p>Tostrud similarly examined CMS Administrator Mehmet Oz&rsquo;s announcement of the deferral. <\/p>\n<p>&ldquo;This quarter-billion-dollar deferment is hopefully going to get on the radar screen for the state of Minnesota and make sure they are responsive to our requests,&rdquo; Oz stated at the time.<\/p>\n<p>In its initial filing, Minnesota argued that Oz and Vance suggested that the deferral, which is intended to be backward-looking, took into account future funding considerations: &ldquo;Defendant Oz and Vice President Vance made clear that the only way for Plaintiffs to recoup the withheld money is for [the Minnesota Department of Human Services] to act on a corrective action plan that meets their approval.&rdquo;<\/p>\n<p>Tostrud said Oz&rsquo;s and Vance&rsquo;s comments &ldquo;concern the possibility of future deferrals and sometimes seem to muddle the regulatory distinctions between deferrals and withholdings.&rdquo; However, he said their statements do not indicate that the Trump administration acted in bad faith or is improperly trying to compel compliance.<\/p>\n<p>&ldquo;All of this is not to say that Minnesota cannot prevail,&rdquo; Tostrud added. &ldquo;Minnesota has <a href=\"https:\/\/amzn.to\/3YuVZYV\" >identified reasonable legal concerns<\/a> regarding the deferral&rsquo;s nature and scope and the federal government&rsquo;s motivations for initiating it. It is possible the record may support these concerns in the future. Today it does not.&rdquo;<\/p>\n<\/div>\n<\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<div class=\"tdb-block-inner td-fix-index\"><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Judge allows CMS to withhold Minnesota Medicaid funds<\/p>\n","protected":false},"author":3767,"featured_media":2588135,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/AP26025710449430.jpg?w=696","fifu_image_alt":"","footnotes":""},"categories":[33651],"tags":[69263,71962,11975,5698,69735],"class_list":["post-2588134","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-western-journal","tag-court-ruling-2","tag-federal-funding-2","tag-medicaid","tag-minnesota","tag-trump-administration-2"],"fifu_image_url":"https:\/\/www.washingtonexaminer.com\/wp-content\/uploads\/2026\/02\/AP26025710449430.jpg?w=696","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2588134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/3767"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2588134"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2588134\/revisions"}],"predecessor-version":[{"id":2588138,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2588134\/revisions\/2588138"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2588135"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2588134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2588134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2588134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}