USA Allegation of fraud: US government freezes funds for poor in Minnesota
In the dispute over a major benefits fraud scandal in Minnesota, the US government is stepping up the pressure on the state.
26.02.2026, 04:29
SDA
Part of the federal subsidy for the health program for low-income people (Medicaid) in Minnesota is to be "temporarily" frozen, as Vice President JD Vance announced. According to the head of the state health systems Medicare and Medicaid, Mehmet Oz, this involves 259 million US dollars, which will not be paid for the time being.
The reason for this is a lack of controls and a "systematic misuse" of taxpayers' money. Republican Vance complained that the authorities in the Democratic-ruled state were unwilling to cooperate in investigating the incidents.
The previous evening, US President Donald Trump had tasked Vance with investigating the fraud. According to Trump, "an estimated 19 billion US dollars" are said to have been embezzled by members of the Somali community.
US media such as the "New York Times" report that fraud amounting to several hundred million dollars has been reported so far. Minnesota's Democratic Governor Tim Walz has so far only named losses of 250 million dollars for some of the affected programs.
Federal states and the government share the costs for Medicaid. According to official figures, around 1.3 million people in Minnesota are dependent on the support. According to the state, a good 40 percent of those receiving benefits are children. The program also supports pregnant women, the disabled and the elderly, among others. In contrast to Germany, there is no nationwide health insurance in the United States.
