US VP Vance freezes Minnesota funds in new 'war on fraud'

US Vice President JD Vance halts $259 million in Medicaid funds for Minnesota, alleging widespread fraud as Trump launches a new crackdown

WASHINGTON: US Vice President JD Vance announced a freeze on federal Medicaid funding for Minnesota.

The move came a day after President Donald Trump appointed Vance to lead a new “war on fraud” targeting alleged abuses in government benefits programs.

“We have decided to temporarily halt certain amounts of Medicaid funding that are going to the state of Minnesota,” Vance told a news conference.

He was referring to the US health insurance program designed for low-income Americans.

Trump’s administrator for the Centers for Medicare and Medicaid Services, Mehmet Oz, specified the amount being withheld.

The federal government would freeze $259 million in payments to the Democratic-led state, Oz said.

The Trump administration has alleged that public benefits fraud is widespread, particularly within Minnesota’s Somali community.

Trump himself has repeatedly criticised Somali immigrants, including during his recent State of the Union address.

Minnesota is home to the largest Somali community in the United States.

The funding freeze is almost certain to face a legal challenge in court.

Previous attempts by the Trump administration to withhold federal funds from states have also been contested legally.

Vance’s new high-profile role has sparked speculation about his political future.

Many see the 41-year-old as a frontrunner for the 2028 Republican presidential nomination.

The assignment also places Vance in a tradition of US vice presidents being given difficult tasks.

His predecessor, Kamala Harris, struggled after being tasked by then-president Joe Biden to address the root causes of migration from Central America.

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