Vance launched Trump’s ‘war on fraud’ by stopping Medicaid payments in Minnesota

WASHINGTON – Vice President JD Vance got a new assignment Tuesday night: to fight the “war on fraud” that President Donald Trump announced in his State of the Union address.

It’s the latest addition to a portfolio that has included saving TikTok from extinction in the US and selling Trump’s “One Big Beautiful Bill” — and it comes with big expectations for Trump.

“He’s going to do it,” Trump said in his speech. “And if we can get enough of that fraud, we’ll basically have a limited budget overnight.”

Vance, joined by Centers for Medicare & Medicaid Services Administrator Mehmet Oz, announced the opening salvo in the effort Wednesday: a break in federal Medicaid reimbursements in Minnesota. The state is the subject of an ongoing fraud investigation involving child care centers and allegations of misappropriation of funds that have become a rallying point for Republicans.

“We have decided to temporarily freeze certain amounts of Medicaid funding going to the state of Minnesota to ensure that the state of Minnesota takes seriously its responsibility to be good stewards of the American tax dollars,” Vance said at an afternoon news conference.

Oz said the Trump administration has notified Minnesota Governor Tim Walz, a Democrat, of their plan, which would deprive the state of $259 million in Medicaid reimbursements this month. This figure, says Oz, is based on research for the last three months of 2025.

“We will give them money, but we will hold it and release it only after they propose action on a comprehensive plan to fix the problem,” Oz said. “If Minnesota fails to clean up the system, the state will rack up billions of dollars in deferred payments this year.”

Oz added that Walz has 60 days to respond. Spokespeople for Walz – the Democratic nominee for vice president in 2024 and a frequent White House critic – did not immediately respond to requests for comment.

But in a post on X Wednesday after Vance and Oz’s remarks, Walz responded, “This has nothing to do with fraud. The agents Trump is sending to investigate fraud are shooting protesters and arresting children. His DOJ is tying up the US Attorney’s Office and crippling their ability to prosecute fraud. And every week another Trump pardons fraud.”

“These cuts will hurt veterans, families with young children, people with disabilities and working people across our region,” he added.

“If providers and beneficiaries are worried about getting their money and services, please call your governor,” Oz said. “These are services the governor has already paid for. We’re not retaliating against the state. To be clear, there is a rainy day fund in Minnesota, so we’re very hopeful that people won’t get hurt in Minnesota.”

Vance, in response to a question from NBC News, said he is “very optimistic” the administration has the legal authority to withhold funds appropriated by Congress.

“We are the ones who use this money. Congress approves it. We are the ones who make sure that this money goes to the people it should go to,” said Vance. “And the natural part of that is to make sure that it only goes to the people that Congress says it should go to. We shouldn’t send money to fraudsters.”

He added: “I would say, we don’t want to do this. We don’t want to be in a situation where the state of Minnesota is being so reckless with state tax dollars that we have to slowly turn them around to take this fraud seriously.”

In his speech on Tuesday, Trump pointed to other Democratic-led states, including California, Maine and Massachusetts, and attributed a $19 billion fraud to Minnesota and its Somali community — a claim lacking evidence. The Justice Department has charged 98 people there, 85 of whom are Somalis, with a $1 billion fraud.

“For too long, vicious fraudsters have gotten away with stealing and exploiting Americans — the Trump Administration will no longer allow these sick criminals to defraud hardworking Americans,” White House spokeswoman Abigail Jackson said Wednesday in an emailed statement. “President Trump and his entire administration remain committed to stopping fraud. And the Department’s efforts are already paying off, with ongoing investigations and important steps to ensure that American dollars are not stolen, and we’re just getting started.”

Vance and his office recently helped launch the Justice Department’s National Fraud Enforcement Unit. In an interview with Fox News earlier Wednesday, Vance said a “whole of government approach” to ending fraud would include the Treasury Department.

“The Department of Justice will investigate and, where possible, put the crooks behind bars,” he said. “But it will also mean that [Treasury Secretary] Scott Bessent and some of our friends at the Department of Finance, we will look at the income tax records. We will be trying to understand how it happened that the American people were defrauded, how it happened that people used services and programs that should go to American citizens and instead they were using a scam. ”

Vance added that he sees “a lot of tools that we have that have never been used.”

When pressed, Vance wasn’t sure how much money might be returned.

“We know that billions and billions of dollars should go to American citizens,” he said.

Vance was also noncommittal about work time.

“I think the year, the next year, is where we’re going to try to disclose as much as we can and run through this as best we can,” he said. “But it won’t stop after a year.”

Vice presidential duties can be politically dangerous and difficult to navigate. Under President Joe Biden, Vice President Kamala Harris was asked to address the “cause” of immigration and lead on policy areas such as abortion. Both were issues, and immigration was seen as a challenge for Harris when he faced Trump in 2024.

In addition to keeping TikTok online and vocal support in Congress for Trump’s legislative priorities, Vance’s portfolio has included supporting roles in Middle East diplomacy and efforts to negotiate peace between Russia and Ukraine. Vance, who is considered a potential presidential candidate when Trump’s term expires in 2028, has also traveled the country more than Trump has to promote the White House’s agenda.

Vance will continue to fulfill that mission on Thursday, with post-Union remarks scheduled in Plover, Wisconsin.