Minnesota on Monday filed suit against President Trump’s administration in federal court seeking to block the withholding of $243 million in Medicaid funds, asking a U.S. district court in Minneapolis to issue a temporary restraining order preventing the freeze from taking effect.
The lawsuit names the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, CMS Administrator Dr. Mehmet Oz in his official capacity, and HHS Secretary Robert F. Kennedy Jr. in his official capacity.
The legal challenge follows comments from Vice President JD Vance last week that the administration would “temporarily halt” certain Medicaid payments to Minnesota over fraud concerns as part of an aggressive crackdown on misuse of public funds.
According to Minnesota Attorney General Keith Ellison’s office, the threatened reduction represents roughly 7% of the state’s quarterly Medicaid funding. The complaint argues the administration violated due process by withholding funds without proving noncompliance through discovery and an evidentiary hearing, failed to provide required notice or details under federal law, and imposed retroactive funding conditions in violation of the Constitution. The state also alleges the action is arbitrary, capricious, and politically motivated.
