Trump's Terms Trump administration cuts some Medicaid funding to Minnesota alleging fraud
Feb 26, 2026
Matt Sepic, an MPR reporter who investigates Medicaid fraud in Minnesota. He explains the federal hold on some Medicaid reimbursements. He outlines which services are targeted, details alleged fraud schemes, and covers state reactions, resignations at the U.S. Attorney’s Office, and federal demands for an anti-fraud plan.
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Federal Hold Targets Nonclinical Medicaid Services
- The Trump administration froze Medicaid reimbursements to Minnesota citing widespread fraud in nonclinical services.
- Matt Sepic details the focus: personal care, home and community-based services, intensive residential treatment, night supervision, and non-emergency transport tied to fake billing schemes.
Phony Autism Centers Billed Millions
- Prosecutors charged people who created phony autism treatment centers and enrolled children regardless of symptoms.
- One defendant pleaded guilty to stealing $14 million; another is expected to plead guilty, illustrating the scale of the scheme.
Fraud Cases Overlap With Immigrant Communities
- Fraud prosecutions have intersected with immigrant communities, notably Minnesota's Somali-American population.
- Matt Sepic notes many defendants in a Medicaid housing fraud case come from that community, a point tied to broader political rhetoric.