St. Paul, Minnesota – July 22, 2026 – The Arc Minnesota is deeply concerned about HHS Secretary Kennedy’s decision to withhold another $199 million in Medicaid payments to Minnesota.
We support efforts to stop fraud, waste, and misuse of public funds. Minnesota has also spent the past seven months making major changes to improve Medicaid oversight. Federal and state leaders should work together to address fraud without putting people’s healthcare and services at risk.
The people most likely to be harmed by delayed or withheld funding are not those accused of fraud. They are people with disabilities, older adults, children, and families who rely on Medicaid every day.
Just one example of how this could affect people with intellectual and developmental disabilities is the impact on disability service providers. Many providers depend on Medicaid payments to pay Direct Support Professionals (DSPs). These workers help people with everyday tasks like getting dressed, preparing meals, taking medications, getting to work, and living fully in their communities. If Medicaid payments are delayed, providers may have to reduce staff, cut services, or close programs. That could leave thousands of Minnesotans without the support they rely on to live independently and be part of their communities.
We urge federal leaders to work with Minnesota to find a solution that addresses fraud while protecting access to care. We can strengthen oversight without putting the health, safety, and independence of people with disabilities at risk.
About The Arc Minnesota
Founded by parents of children with intellectual and developmental disabilities (IDD) in 1946, The Arc Minnesota is a statewide nonprofit organization that promotes and protects the human rights of people with IDD and supports them and their families throughout a lifetime of inclusion and participation in their communities. We believe people with disabilities are inherently strong, capable, and resilient. The lived experiences of people with disabilities guide our policy priorities.