Walz Proposes Minnesota Medicaid Overhaul Amid Fraud Scrutiny

The governor wants to centralize the state’s Medicaid amid federal fraud pressure.

Minnesota Gov. Tim Walz testifies before the House Committee on Oversight and Government Reform on Capitol Hill in Washington on March 4, 2026. Madalina Kilroy/The Epoch Times

Minnesota Gov. Tim Walz on Tuesday proposed a major overhaul of how the state administers Medicaid, calling for a centralized system to replace the current patchwork of counties and managed care organizations. 

The proposal comes after months of mounting federal scrutiny over fraud in Minnesota’s social services programs. In February, the Trump administration withheld $259 million in Medicaid funds from the state over fraud allegations, and Walz and Attorney General Keith Ellison testified before Congress on March 4, defending their record.