Image: from Lee Williams X @HT_GunWriter
ST. PAUL, MN — Minnesota Attorney General Keith Ellison has escalated the state’s burgeoning legal war with Washington, filing a federal lawsuit against the Trump administration on Monday. The suit seeks to block the withholding of $259 million in Medicaid funds, a move Minnesota officials characterize as an illegal “punishment” bypassing due process.
The legal action targets the Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS). Ellison also confirmed he is seeking a temporary restraining order against HHS Secretary Robert F. Kennedy Jr. and CMS Administrator Mehmet Oz to halt the funding deferral immediately.
Allegations of “Fraud” vs. Due Process
The funding freeze was announced last week by Vice President JD Vance and Administrator Oz, who cited alleged widespread Medicaid fraud within the state as the justification for the cuts. However, Minnesota officials argue the administration is using fraud allegations as a smokescreen to bypass federal law.
“The Trump Administration’s M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all,” Ellison said in a blistering statement. “These cuts are the latest in a long series of efforts to go around the law to punish Minnesotans.”
A Multibillion-Dollar Standoff
The conflict traces back to January 6, 2026, when the administration first threatened to withhold more than $2 billion annually, citing unspecified “noncompliance.” According to the lawsuit:
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Minnesota appealed the initial noncompliance notice immediately.
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The state claims it has received no specific details on how it is noncompliant or how to remedy the federal government’s concerns.
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On February 25, the administration “deferred” $243 million, a move the state argues was a way to start the cuts without waiting for the legally required hearings and due process.
The “Runaround” at CMS
The lawsuit paints a picture of a federal bureaucracy intentionally stalling. While CMS technically has a 90-day window to decide on state claims, Ellison alleges the agency “regularly evades” this deadline by demanding additional information or claiming submissions are insufficient, ensuring the 90-day clock never actually begins.
Furthermore, the Attorney General’s office noted that despite promising to provide documents necessary for Minnesota’s appeal on January 20, CMS has failed to produce them. The agency reportedly claimed it has been “unable to obtain the documents from senior leadership,” effectively preventing a hearing from being scheduled.
Impact on Families
Ellison emphasized that the legal battle isn’t just about balance sheets, but about the “high-quality, affordable healthcare” relied upon by thousands of Minnesota families. He accused the administration of harming anti-fraud efforts by politicizing the oversight process.
“Fighting fraud should be bipartisan,” Ellison added, “but the Trump Administration not only hasn’t helped the fight… they’ve actually harmed it.”