Politics
Fraud-plagued Minnesota sues Trump admin for withholding $243M in Medicaid payments
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Minnesota filed a federal lawsuit Monday against the Trump administration, accusing federal health officials of illegally withholding $243 million in Medicaid payments from the state.
Attorney General Keith Ellison and the Minnesota Department of Human Services sued the Centers for Medicare and Medicaid Services (CMS) and the U.S. Department of Health and Human Services (HHS), arguing the funding freeze violates federal law.
The state is seeking a temporary restraining order to immediately block the action.
The dispute stems from a January notice in which the Trump administration said it would withhold more than $2 billion annually from Minnesota’s Medicaid program over what it described as “noncompliance” with federal regulations, specifically, alleged failures to “adequately identify, prevent, and address fraud in its Medicaid program.”
Minnesota Attorney General Keith Ellison speaks during a Senate Homeland Security Committee hearing on Capitol Hill. (Tom Brenner/AP)
State officials say they have not been told specifically how Minnesota is out of compliance or what changes the administration wants to see.
The lawsuit follows a Feb. 25 announcement from CMS that it was deferring roughly $260 million in quarterly federal Medicaid funding to Minnesota, including about $243 million tied to “unsupported or potentially fraudulent” claims.
CMS said the deferral is part of a broader fraud crackdown and cited unusually high spending and rapid growth in personal care services, home- and community-based services, and other practitioner services.
HEAVILY-REDACTED AUDIT FINDS MINNESOTA MEDICAID HAD WIDESPREAD VULNERABILITIES
Vice President JD Vance looks on as Medicare and Medicaid Administrator Mehmet Oz speaks about combating fraud at the White House complex in Washington, D.C., on Feb. 25, 2026. (Oliver Contreras/AFP via Getty Images)
“For decades, Medicare fraud has drained billions from American taxpayers — that ends now,” HHS Secretary Robert F. Kennedy Jr. said in a statement. “We are replacing the old ‘pay and chase’ model with a real-time ‘detect and deploy’ strategy, using advanced AI tools to identify fraud instantly and stop improper payments before they go out the door.”
Minnesota officials contend the move improperly uses a funding “deferral” mechanism and amounts to denying the state due process before any formal finding of noncompliance.
WALZ SLAMS TRUMP ADMIN FOR TEMPORARILY HALTING MEDICAID FUNDING TO MINNESOTA: ‘CAMPAIGN OF RETRIBUTION’
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The threatened cuts represent about 7% of Minnesota’s quarterly Medicaid funding and could force reductions in health care services for low-income residents, according to Ellison’s office.
“Trump’s M.O. is to cut first, no matter what the law says or who gets hurt, and ask questions later, if at all,” the attorney general said. “These cuts are the latest in a long series of efforts to go around the law to punish Minnesotans — but just as we fought back and won when they illegally tried to cut funding for childcare, hungry families, and our schools, we are suing them again today to make them follow the law.”
Politics
Trump Administration Investigating Smith College Over Transgender Admissions
The Education Department has opened a civil rights investigation into whether Smith College, the women’s school in Northampton, Mass., violated anti-discrimination laws by allowing transgender students to enroll.
The inquiry broadens the Trump administration’s bid to limit rights for the nation’s transgender students by targeting school admissions for the first time. Until now, the administration had mostly targeted policies that allowed for transgender women to participate in women’s sports and use women’s bathrooms.
By investigating Smith, the administration is raising the question of whether allowing transgender women to enroll at a women’s college — and providing access to “women-only” spaces such as bathrooms, dormitories and locker rooms — violates civil rights protections for women.
Kimberly Richey, the assistant secretary for civil rights at the Education Department, said in a statement that “an all-women’s college loses all meaning if it is admitting biological males.”
“Allowing biological males into spaces designed for women raises serious concerns about privacy, fairness and compliance under federal law,” Ms. Richey said. “The Trump administration will continue to uphold the law and fight to restore common sense.”
The college issued a statement acknowledging the investigation and stating that it remained “fully committed to its institutional values, including compliance with civil rights laws.”
About 4.7 percent of college students identify as transgender, according to the Society for Evidence-Based Gender Medicine, a group of doctors and scientists that has called for more government regulation of pediatric gender medicine.
The federal investigation was in response to a civil-rights complaint filed by Defending Education, a nonprofit group founded in 2021 that has become one of the leading voices in the growing parents’ rights movement. Several of the group’s complaints have sparked federal civil rights investigations during the past year, and its research is often cited during congressional hearings by conservative lawmakers.
Formerly known as Parents Defending Education, the Arlington, Va.-based group posted on its website a letter from the Education Department’s Office for Civil Rights on Monday announcing the investigation into Smith.
Smith, one of the nation’s largest women’s schools with about 2,500 students, has been admitting transgender students since 2015, along with several other top women’s colleges. The issue became a lightning rod at women’s colleges after a transgender applicant was denied acceptance to Smith in 2013 because her gender identity did not match her financial aid forms.
Since then, most women’s colleges updated their admissions policies to welcome transgender applicants. One notable exception has been Sweet Briar College in central Virginia, which does not admit transgender students and helps students in transition transfer to another college.
The Trump administration resolved 30 percent fewer civil rights complaints in the nation’s schools in 2025 compared with the Biden administration in 2024, the sharpest year-over-year decline in at least three decades. But the new administration has opened more than 40 civil rights investigations into schools and other educational institutions that provide protections for transgender students.
The Education Department has taken the unusual step of backing out of civil rights agreements that previous administrations negotiated to protect transgender students. The government has also sued state education departments and high school athletic associations in California and Minnesota over policies that permit transgender athletes to participate in school sports.
Politics
Elizabeth Warren’s Bezos Met Gala jab backfires as critics mercilessly drag ‘un-American’ lawmaker
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Sen. Elizabeth Warren, D-Mass., drew intense criticism on Monday after she claimed on X that Amazon founder Jeff Bezos should pay more in taxes in response to him sponsoring the Met Gala, with conservatives questioning the senator’s record and accusing her of misrepresenting facts.
“The answer to everything, up to and apparently including bankrupting an airline at the cost of something like 15,000 jobs and the entire concept of budget airfare, is ‘Jeff Bezos has a lot of money though,’” venture capitalist and media founder Mike Solana wrote in response to Warren’s post.
Solana was referring to the recent demise of Spirit Airlines. Conservative commentators claim Spirit could have been saved if Warren hadn’t pushed to block JetBlue’s acquisition of the budget carrier on anti-trust grounds in 2024.
“If Jeff Bezos can drop $10 million to sponsor the Met Gala, he can afford to pay his fair share in taxes,” Warren said on Monday, sparking the glut of pushback from social media users.
WASHINGTON POST ARGUES THERE’S ‘LITTLE TO GAIN BY RAISING TAXES ON THE RICH,’ RATES ALREADY HIGH ENOUGH
Sen. Elizabeth Warren, D-Mass., questions Treasury Secretary Janet Yellen during a Senate Finance Committee hearing on Capitol Hill in Washington on March 16, 2023. (Jacquelyn Martin/AP)
Following news that Bezos had cut an eight-figure check to fund the Met Gala, liberals in the entertainment industry such as Mark Ruffalo and Taraji P. Henson joined Warren in criticizing Amazon and Bezos for their allegedly unethical business practices. Protesters appeared outside the gala on Monday holding signs criticizing Bezos. One demonstrator was detained for trying to break into the event.
Warren’s message backfired online, as commenters pointed to the demise of Spirit Airlines and took issue with her tax policies across the years.
“Jeff Bezos employs over 1.5 million people at Amazon,” X user Gina Milan wrote. “You’re responsible for 17,000 workers losing their jobs and for blocking the merger that ultimately killed Spirit Airlines.”
Spirit put downward pressure on prices at other airlines and its folding could lead to an increase in overall travel prices, industry analysts told USA Today. Estimated job losses stemming from Spirit’s shuttering include approximately 15,000 direct employees and an additional 2,000 indirect employees.
“This myth just won’t die,” Reason Magazine reporter Billy Binion posted, responding to Warren’s assertion that Bezos isn’t paying enough in taxes. “In 2024 alone, it’s estimated Jeff Bezos paid almost $3 billion in taxes. Painting rich people as tax avoiders plays great on social media, but it’s not reality. The U.S. has the most progressive tax system in the developed world.”
Forbes estimates that Bezos paid $2.7 billion in taxes in 2024 after he sold $13.6 billion worth of Amazon stock. He reduced his tax burden that year by donating $2.5 billion in Amazon shares to charity over the three prior years. Bezos paid nearly $1 billion in taxes between 2014 and 2018, according to a ProPublica analysis of tax documents.
To minimize tax burdens, billionaires like Bezos often take out loans secured against their massive stock holdings to acquire spending money, according to securities filings reviewed by ProPublica. Since the IRS doesn’t consider loans income, this setup gives the wealthy access to cash without having to pay income taxes.
FROM ‘JUMP ON A BUS’ TO TAX CRACKDOWNS: BLUE STATES CHASE WEALTHY RESIDENTS FLEEING TO RED HAVENS
Billionaire Jeff Bezos attends the DealBook Summit. Critics on social media have accused Bezos of allowing the Washington Post to suffer amid hundreds of staff layoffs. (Eugene Gologursky/Getty Images for The New York Times)
Some on social media pushed Warren for specifics on how she plans to make Bezos pay his “fair share.”
“What’s his fair share?” Sen. Mike Lee, R-Utah, asked Warren. “What tax rate?”
Warren has proposed a wealth tax, charging households with net worths above $1 billion an annual tax worth 6% of their total wealth. Under Warren’s proposal, households with net worths between $50 million and $1 billion would be subject to a similar 2% tax.
Sen. Elizabeth Warren speaks to a staff member before the Senate Banking Committee hearing on oversight of credit reporting agencies on Capitol Hill in Washington, D.C., on April 27, 2023. (Drew Angerer/Getty Images)
CALIFORNIA’S HATRED FOR CAPITALISM IS KILLING THE GOOSE THAT LAID ITS GOLDEN EGG
Much of the growth in wealth experienced by Bezos and other billionaires comes through the unrealized gains of their assets, which Warren’s tax would target.
Writer Mike Coté pointed out that Bezos is “so rich that he can simply leave the jurisdiction or get citizenship elsewhere” if Warren’s tax plans were signed into law.
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“Liz Warren does not want progressive taxation,” he continued. “She wants confiscatory taxation. It’s fundamentally un-American. And it doesn’t work.”
Warren’s office did not respond to a request for comment sent by Fox News Digital Tuesday morning.
Politics
‘Ceasefire is not over,’ Hegseth says as U.S. acts to reopen Strait of Hormuz
WASHINGTON — The United States has launched a new military operation to ensure commercial shipping vessels can safely pass through the Strait of Hormuz, deploying scores of warships, fighter jets and drones to counter Iranian efforts that have threatened the narrow waterway that carries a fifth of the world’s oil.
At a news conference Tuesday at the Pentagon, Defense Secretary Pete Hegseth said the new initiative — dubbed “Project Freedom” — is a temporary and defensive operation meant to resume the flow of traffic through the international waterway as hostilities have continued in the region.
“We are not looking for a fight, but Iran cannot be allowed to block innocent countries and their goods from an international waterway,” Hegseth said, while calling Iran’s tactics “international extortion.”
The operation comes nearly a month after the United States reached a fragile ceasefire deal with Iran, a truce that Hegseth said remains in effect even though Tehran has continued to attack U.S. forces and commercial vessels.
“The ceasefire is not over,” Hegseth said.
Gen. Dan Caine, the chairman of the Joint Chiefs of Staff, said that since the ceasefire took effect, Iran has fired at commercial vessels nine times, seized two container ships and attacked U.S. forces more than 10 times. All of these instances, he said, are “below the threshold of restarting major combat operations at this point.”
Those attacks have left more than 1,550 vessels trapped in the Arabian Gulf, unable to transit, disrupting global trade and pushing energy markets toward crisis, with fuel prices climbing and shipping costs surging.
The new U.S. mission was cast as separate from the broader military campaign over Iran’s nuclear weapons program. As negotiations to denuclearize Iran continue, Caine said commercial vessels wanting to cross the strait will now “see, hear and frankly feel the U.S. combat power around them, on the sea, in the skies and on the radio.”
Two U.S. commercial vessels, escorted by Navy destroyers, have already moved through the Strait, Hegseth said.
“We know the Iranians are embarrassed by this fact,” Hegseth said. “They said they control the strait, they do not.”
Hegseth called the operation a “direct gift from the United States to the world,” aimed at resuming traffic through one of the world’s most vital waterways.
“To what remains of Iran’s forces: if you attack American troops or innocent commercial shipping, you will face overwhelming and devastating American firepower,” Hegseth said. “The president has been very clear about this.”
On Tuesday evening local time, the UAE’s defense ministry said in a statement on X that the country’s defensive systems “are actively engaging with missiles and UAV threats and that “sounds heard across the across the country are the result of ongoing engaging operations.”
Tuesday’s barrage marks the second consecutive day of attacks targeting the UAE since the U.S.-Iran ceasefire took hold on April 8. On Monday, the UAE said it engaged a total of 12 ballistic missiles, three cruise missiles and four drones launched from Iran.
For its part, Iran said it had no “pre-planned program” to attack the UAE’s oil facilities, but that attacks were prompted by the United States’ plans to reopen the Strait of Hormuz, according to an unnamed military official quoted by Iranian State TV.
“What happened was the product of the U.S. military’s adventurism to create a passage for ships to illegally pass through” the Strait, the official said, adding the U.S. military “must be held accountable for it.”
Ceballos reported from Washington, Bulos from Beirut.
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