Judge Denies Minnesota Request to Block $243 Million Medicaid Freeze

A U.S. District Judge ruled on April 6 that the Trump administration may proceed with the deferral of more than $243 million in Medicaid funds from Minnesota. Eric C. Tostrud denied the state's request for a temporary restraining order and preliminary injunction, concluding that the freeze likely complies with federal regulations and that the lawsuit was premature as the administrative review process remains unfinished.

Vice President JD Vance and CMS Administrator Mehmet Oz announced the freeze in February 2026 as part of an anti-fraud effort targeting public benefit scandals. Minnesota Attorney General Keith Ellison sued the federal government in March, arguing the funding freeze was political retribution that would cripple the state budget and harm 1.2 million beneficiaries of Minnesota Medical Assistance.

While Judge Tostrud acknowledged that the size and timing of the deferral were historically unprecedented, he stated that some of Minnesota's legal theories were novel and not supported by law. Federal authorities and the Centers for Medicare and Medicaid Services maintain that the funds will be released once Minnesota implements a corrective action plan and provides documentation proving it paid legitimate claims warranting reimbursement.