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Mental Health Advocates Warn Withholding Medicaid Funds Could Impact Services

By Jason Melillo Mar 7, 2026 | 5:00 AM

(MNN)-Mental-health advocates warn that more than $240 million in withheld Medicaid funding could have a devastating impact across Minnesota. NAMI Minnesota executive director Marcus Schmit says Medicaid is essential for tens of thousands of children and adults who rely on school-linked services, community-based treatment, and crisis care. He says Medicaid is the single largest funder of mental-health services in Minnesota and withholding funds would result in the loss of care, and they believe the loss of lives. The Trump Administration says the funds are being held back because of how Minnesota has handled fraud. Attorney General Keith Ellison has filed a lawsuit to block the cuts.

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