WASHINGTON, D.C. – Congressman Brad Finstad (MN-01) led Majority Whip Tom Emmer (MN-06), Congresswoman Michelle Fischbach (MN-07), and Congressman Pete Stauber (MN-08) in sending a letter to Governor Walz and his Administration calling for accountability and compliance with federal law regarding the ongoing fraud, waste, and abuse within Minnesota’s Medicaid program following the Centers for Medicare and Medicaid Services’ (CMS) decision to withhold $259 million in federal Medicaid funding from the state.

In the letter, the members highlighted a federal audit that found $234.8 million in unsupported or possibly fraudulent Medicaid claims and $15.4 million involving individuals without satisfactory immigration status, leading CMS to temporarily suspend $259 million in federal funds and reject the state’s corrective action plan as insufficient.

In part, the lawmakers write:

“Minnesota has now become a national case study in failed program oversight and misused public funds. As Members of Congress, we are working diligently to restore fiscal order at the federal level, but that effort requires strong partners in state governments – partners who are equally committed to rooting out fraud, waste, and abuse, and ensuring taxpayer dollars are respected.
 
“As elected officials called to be good stewards of taxpayer dollars, fiscal discipline, program integrity, and public trust must be restored – starting now. We urge you to comply with CMS’s instructions and work with us to bring Minnesota back in compliance with federal regulations. Minnesotans would give the shirt off their back to help a neighbor in need. Once Minnesota follows CMS’s guidance and complies with federal regulations, the funding will be restored. The people of Minnesota deserve nothing less and your partisan posturing is hurting our state.”

Read the full letter here.

In July of 2025, CMS began trying to work with the Walz Administration to address the concerns surrounding Minnesota’s compliance with federal Medicaid requirements.

In the fourth quarter of Fiscal Year 2025, ending in September, a federal audit found $234.8 million in unsupported or potentially fraudulent Medicaid claims and an additional $15.4 million in claims involving individuals without satisfactory immigration status.

On December 31, 2025, Minnesota submitted a corrective action plan (CAP) to CMS providing the steps the state needed to take to regain compliance.

In early 2026, CMS determined Minnesota’s CAP was insufficient, citing its reliance on temporary or future measures, lack of enforceable timelines and performance metrics, limited oversight and limited accountability for previous misconduct.