Dr. Oz Threatens to Pull Funding From Minnesota After $1 Billion in Medicaid Funding Was Stolen by Fraudsters

The CMS administrator ordered Minnesota Gov. Tim Walz to fix issues in 60 days or lose federal funding.

A man walks through the Cedar-Riverside neighborhood, a hub for Somali-American residents, amid reports of a planned federal operation targeting Somali immigrants, in Minneapolis, on Dec. 2, 2025. REUTERS/Tim Evans

The Centers for Medicare & Medicaid Services (CMS) threatened to withhold federal funding from Minnesota after fraudsters allegedly stole more than $1 billion set aside for Medicaid programs.

CMS administrator Dr. Mehmet Oz ordered Minnesota Gov. Tim Walz to follow a series of guidelines that crack down on the fraud and said that if the state does not comply, it will lose federal money.