Congressman Brad Finstad, representing Minnesota’s 1st district in the U.S. Congress since 2022, has led a group of Minnesota Republican lawmakers in urging Governor Tim Walz to address issues related to fraud and oversight in the state’s Medicaid program. The call comes after the Centers for Medicare and Medicaid Services (CMS) decided to withhold $259 million in federal Medicaid funding from Minnesota.
In a letter sent to Governor Walz and his administration, Finstad, along with Majority Whip Tom Emmer, Congresswoman Michelle Fischbach, and Congressman Pete Stauber, referenced a federal audit that identified $234.8 million in unsupported or potentially fraudulent Medicaid claims. The audit also found $15.4 million in claims involving individuals who did not have satisfactory immigration status. These findings prompted CMS to suspend federal funds and reject the state’s corrective action plan as inadequate.
The lawmakers stated: “Minnesota has now become a national case study in failed program oversight and misused public funds. As Members of Congress, we are working diligently to restore fiscal order at the federal level, but that effort requires strong partners in state governments – partners who are equally committed to rooting out fraud, waste, and abuse, and ensuring taxpayer dollars are respected.
“As elected officials called to be good stewards of taxpayer dollars, fiscal discipline, program integrity, and public trust must be restored – starting now. We urge you to comply with CMS’s instructions and work with us to bring Minnesota back in compliance with federal regulations. Minnesotans would give the shirt off their back to help a neighbor in need. Once Minnesota follows CMS’s guidance and complies with federal regulations, the funding will be restored. The people of Minnesota deserve nothing less and your partisan posturing is hurting our state.”
The situation began when CMS attempted to work with Governor Walz’s administration starting July 2025 regarding concerns about compliance with federal Medicaid requirements. By September 2025, an audit had revealed significant problems including unsupported claims totaling hundreds of millions of dollars.
Minnesota submitted a corrective action plan on December 31, 2025; however, CMS found it lacking due to its reliance on temporary measures without enforceable timelines or adequate accountability for previous misconduct.
Brad Finstad was born in New Ulm, Minnesota in 1976 and continues to reside there today. He previously served in the Minnesota House of Representatives from 2003 until 2009 before joining Congress following Jim Hagedorn’s tenure. Finstad holds a Bachelor of Science degree from the University of Minnesota.
