Democratic Minnesota Gov. Tim Walz laid out his anti-fraud legislative package on Thursday, one day after the White House paused $259 million in federal Medicaid payments to the state until a comprehensive action plan is laid out to fight fraud.
The package focuses on three main components:
- Better detection and oversight
- Strengthened investigative and enforcement authority
- Increased criminal penalties
“Any dollar of state money, especially those being used for programs to enhance people’s lives, if that goes to the wrong place, is misspent, or in the case of this, criminals are stealing it, we need to do everything possible to prosecute that,” Walz said.
Vice President JD Vance and Dr. Mehmet Oz, who runs the Centers for Medicare and Medicaid Services, said on Wednesday the funding freeze is part of a broader national crackdown on misuse of public funds following several high-profile fraud cases in the state, including the Feeding our Future scandal. He said the state has 60 days to respond.
“All we need the governor and administration of Minnesota to do is something quite simple, is to show when they’re giving Medicaid funds to somebody that you’re taking seriously the funds that you’re providing, and the fact that there are so many people handing out millions and billions of dollars without confirming that they are doing the thing that they are doing. It’s a disgrace and we are stopping it,” Vance said.
Walz said Thursday the Trump administration’s move “is absolutely not serious,” and it’s “not meant to fight fraud.”
“How does taking and punishing children and elderly have anything to do with fighting fraud when that’s not where this issue is taking place?” Walz said.
The governor added the Medicaid pause is “totally illegal and unprecedented.”
“We’re at a crossroads here in Minnesota. If you like talking about fraud and you think it’s an electoral issue for you, that’s gone. I’m not running. That’s gone,” Walz said. “If you’re serious about fighting fraud, you can help us work on this package, get this package passed.”
Following Wednesday’s Medicaid announcement, Walz took to social media following the announcement, saying in part the move is another piece in a “campaign of retribution” against Minnesota.
“Trump is weaponizing the entirety of the federal government to punish blue states like Minnesota,” Walz said. “These cuts will be devastating for veterans, families with young kids, folks with disabilities and working people across our state.”
Shireen Gandhi, commissioner of the Minnesota Department of Human Services, echoed Walz’s sentiment, saying Vance’s announcement is “part of a broad and sustained attack.”
“Deferring $259 million will significantly harm the state’s health care infrastructure and the 1.2 million Minnesotans who depend on Medicaid,” Gandhi said.
This story will be updated.
Beret Leone
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