Case: State of Minnesota v. Oz

0:26-cv-01701 | U.S. District Court for the District of Minnesota

Filed Date: March 2, 2026

Case Ongoing

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Case Summary

This case is a lawsuit which alleges that the federal government weaponized Medicaid against the State of Minnesota as a political punishment by deferring $243 million of Medicaid funding from the State after Minnesota legally challenged the Trump Administration’s January 6 announcement that it would be withholding $2 billion of Medicaid funding from the State for “noncompliance” by appeal.  On March 2, 2026, the State of Minnesota and the Commissioner of the Minnesota Department of Human Servi…

This case is a lawsuit which alleges that the federal government weaponized Medicaid against the State of Minnesota as a political punishment by deferring $243 million of Medicaid funding from the State after Minnesota legally challenged the Trump Administration’s January 6 announcement that it would be withholding $2 billion of Medicaid funding from the State for “noncompliance” by appeal. 

On March 2, 2026, the State of Minnesota and the Commissioner of the Minnesota Department of Human Services filed suit in U.S. District Court for the District of Minnesota against the Administrator for the Centers for Medicare and Medicaid Services, Dr. Mehmet Oz, the Centers for Medicare and Medicaid Services, the Secretary of the U.S. Department of Health and Human Services (HHS), Robert F. Kennedy, Jr., and HHS. In their complaint, the plaintiffs alleged that on January 6th, 2026, the Trump Administration announced that more than $2 billion annually would be withheld from Minnesota based on vague assertions of “noncompliance.” Minnesota appealed and, to this date, has not yet been told how it is noncompliant or what it can do to remedy the Administration’s concerns. The Administration then "deferred" $243 million to Minnesota on February 25, 2026. Deferral is an auditing tool employed to question “a claim or a portion of a claim” for which there is a lack of supporting documentation showing that payment to a Medicaid provider is warranted. Deferral has never been used to categorically deny a state's funds across entire service areas. The Administration stated that the deferral will recur every quarter, which would cripple the state budget. The plaintiffs contend that this deferral constituted a violation of procedural due process under the Fifth Amendment, was arbitrary, capricious, and contrary to law, as well as without observation of procedure, in violation of the Administrative Procedure Act, violated the Spending Clause, and was beyond the scope of the defendants’ statutory authority. This case was assigned to Judge Eric C. Tostrud

Along with their complaint, the plaintiffs filed a motion for a temporary restraining order and expedited preliminary injunction, requesting that the court enjoin the defendants from immediately withholding $243,790,260 from plaintiffs as stated in defendants’ February 25, 2026 deferral notice.

The district court heard oral arguments as to the plaintiffs’ motion for a temporary restraining order and preliminary injunction on March 12, 2026. On April 6, 2026, Judge Tostrud denied Minnesota's preliminary injunction motion. The court's primary reasoning included that the deferral notice was not "final agency action" under the Administrative Procedure Act (APA) because it initiated an investigative procedure rather than marking consummation of the agency's decision-making process, and that Minnesota failed to demonstrate sufficient irreparable harm for preliminary relief.

This case is ongoing.

Summary Authors

Sofia Yoder (3/28/2026)

Maddy Ligon (4/16/2026)

People

For PACER's information on parties and their attorneys, see: https://www.courtlistener.com/docket/72353395/parties/state-of-minnesota-v-oz/


Judge(s)
Attorney for Plaintiff

Boese, Brandon L (Minnesota)

Brennaman, Nate A (Minnesota)

Doyle, Emily (Minnesota)

Attorney for Defendant

Fuller, David W (Minnesota)

Expert/Monitor/Master/Other

Hahn, Robert David (Minnesota)

Documents in the Clearinghouse

Documents in this case
1

0:26-cv-01701

Complaint for Declaratory and Injunctive Relief

March 2, 2026

March 2, 2026

Complaint
2

0:26-cv-01701

Plaintiffs' Motion for Temporary Restraining Order and Expedited Preliminary Injunction

March 2, 2026

March 2, 2026

Pleading / Motion / Brief
43

0:26-cv-01701

Opinion and Order

April 6, 2026

April 6, 2026

Order/Opinion

2026 WL 926185

Docket

See docket on RECAP: https://www.courtlistener.com/docket/72353395/state-of-minnesota-v-oz/

Last updated April 20, 2026, 3:13 a.m.

ECF Number Date Description Link
1 March 2, 2026

COMPLAINT for Declaratory and Injunctive relief against Centers for Medicare and Medicaid Services, Robert F. Kennedy, Jr, Dr. Mehmet Oz, U.S. Department of Health and Human Services (filing fee $ 405, receipt number AMNDC-12746756) filed by State of Minnesota, Shireen Gandhi. Filer requests summons issued. (Attachments: # 1 Civil Cover Sheet) (Ikeda, Scott) (Entered: 03/02/2026)

1 Civil Cover Sheet

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Clearinghouse
2 March 2, 2026

MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota. (Ikeda, Scott) (Entered: 03/02/2026)

Clearinghouse
3 March 2, 2026

NOTICE OF HEARING ON MOTION 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested : Date and time to be determined. (Ikeda, Scott) (Entered: 03/02/2026)

RECAP
4 March 2, 2026

MEMORANDUM in Support re 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Ikeda, Scott) (Entered: 03/02/2026)

1 LR7.1/LR72.2 Word Count Compliance Certificate

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RECAP
5 March 2, 2026

Declaration of Nate Brennaman in Support of 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota. (Attachments: # 1 Exhibits 1-7)(Ikeda, Scott) Modified text on 3/3/2026 (ACH). (Entered: 03/02/2026)

1 Exhibits 1-7

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RECAP
6 March 2, 2026

Declaration of John Connolly in Support of 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota.(Ikeda, Scott) (Entered: 03/02/2026)

RECAP
7 March 2, 2026

Declaration of Patrick Hultman in Support of 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota.(Ikeda, Scott) (Entered: 03/02/2026)

RECAP
8 March 2, 2026

Declaration of Ahna Minge in Support of 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota.(Ikeda, Scott) (Entered: 03/02/2026)

RECAP
9 March 2, 2026

PROPOSED ORDER TO JUDGE re 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota.(Ikeda, Scott) (Entered: 03/02/2026)

RECAP
10 March 3, 2026

(Text-Only) CLERK'S NOTICE OF INITIAL CASE ASSIGNMENT. Case assigned to Judge Eric C. Tostrud per Civil (3rd, 4th - Master) list, referred to Magistrate Judge David T. Schultz. Please use case number 26-cv-1701 (ECT/DTS).Notice: All Nongovernmental Corporate Parties must file a Rule 7.1 Corporate Disclosure Statement. (MKB) (Entered: 03/03/2026)

RECAP
11 March 3, 2026

Summons Issued as to Centers for Medicare and Medicaid Services, the, Robert F. Kennedy, Jr, Dr. Mehmet Oz, U.S. Department of Health and Human Services. (MKB) (Entered: 03/03/2026)

RECAP
12 March 3, 2026

CERTIFICATE OF SERVICE by Shireen Gandhi, State of Minnesota re 7 Declaration in Support, 1 Complaint, 5 Declaration in Support, 11 Summons Issued, 9 Proposed Order to Judge, 3 Notice of Hearing on Motion, 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested, 8 Declaration in Support, 6 Declaration in Support, 4 Memorandum in Support of Motion, (Ikeda, Scott) (Entered: 03/03/2026)

RECAP
13 March 3, 2026

NOTICE OF HEARING ON MOTION 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested : Motion Hearing set for 3/12/2026 at 10:00 AM in Courtroom 7D (STP) before Judge Eric C. Tostrud. (Ikeda, Scott) (Entered: 03/03/2026)

RECAP
14 March 3, 2026

BRIEFING ORDER re: 2 Motion for TRO and Preliminary Injunction. Motion Hearing set for 3/12/2026 at 10:00 AM in Courtroom 7D (STP) before Judge Eric C. Tostrud. See Order for deadlines and specifics. Signed by Judge Eric C. Tostrud on 3/3/2026.(RMM) (Entered: 03/03/2026)

RECAP
15 March 4, 2026

CERTIFICATE OF SERVICE by Shireen Gandhi, State of Minnesota re 7 Declaration in Support, 1 Complaint, 5 Declaration in Support, 11 Summons Issued, 9 Proposed Order to Judge, 3 Notice of Hearing on Motion, 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested, 14 Briefing Order, 12 Certificate of Service, 8 Declaration in Support, 6 Declaration in Support, 4 Memorandum in Support of Motion, 13 Notice of Hearing on Motion, (Ikeda, Scott) (Entered: 03/04/2026)

RECAP
16 March 4, 2026

CERTIFICATE OF SERVICE by Shireen Gandhi, State of Minnesota re 14 Briefing Order, 13 Notice of Hearing on Motion, (Ikeda, Scott) (Entered: 03/04/2026)

RECAP
17 March 4, 2026

NOTICE of Appearance by Nate A Brennaman on behalf of Shireen Gandhi, State of Minnesota. (Brennaman, Nate) (Entered: 03/04/2026)

RECAP
18 March 6, 2026

MOTION to Appear as Amicus Curiae filed by Autism Treatment Association of Minnesota. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Hahn, Robert) (Entered: 03/06/2026)

1 LR7.1/LR72.2 Word Count Compliance Certificate

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RECAP
19 March 6, 2026

PROPOSED ORDER TO JUDGE re 18 MOTION to Appear as Amicus Curiae filed by Autism Treatment Association of Minnesota.(Hahn, Robert) (Entered: 03/06/2026)

RECAP
20 March 6, 2026

ORDER: Motion of Autism Treatment Association of Minnesota for Leave to File Amicus Brief 18 is GRANTED. See Order for specifics. Signed by Judge Eric C. Tostrud on 3/6/2026. (RMM) (Entered: 03/06/2026)

RECAP
21 March 9, 2026

NOTICE of Appearance by David W Fuller on behalf of Centers for Medicare and Medicaid Services, the, Robert F. Kennedy, Jr, Dr. Mehmet Oz, U.S. Department of Health and Human Services. (Fuller, David) (Entered: 03/09/2026)

RECAP
22 March 9, 2026

MEMORANDUM in Opposition re 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Centers for Medicare and Medicaid Services, the, Robert F. Kennedy, Jr, Dr. Mehmet Oz, U.S. Department of Health and Human Services.(Fuller, David) (Entered: 03/09/2026)

RECAP
23 March 9, 2026

DECLARATION of Dorothy Ferguson re 22 Memorandum in Opposition to Motion, by Centers for Medicare and Medicaid Services, the, Robert F. Kennedy, Jr, Dr. Mehmet Oz, U.S. Department of Health and Human Services . (Fuller, David) (Entered: 03/09/2026)

RECAP
24 March 10, 2026

BRIEF Amicus Curiae filed by Autism Treatment Association of Minnesota. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Hahn, Robert) (Entered: 03/10/2026)

1 LR7.1/LR72.2 Word Count Compliance Certificate

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RECAP
25 March 11, 2026

Supplemental Declaration of Patrick Hultman in Support of 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota. (Attachments: # 1 Exhibit(s) 1-2)(Brennaman, Nate) (Entered: 03/11/2026)

1 Exhibit(s) 1-2

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RECAP
26 March 12, 2026

MOTION for Admission Pro Hac Vice for U.S. Government Attorney Matthew Zorn filed by Centers for Medicare and Medicaid Services, the, Robert F. Kennedy, Jr, Dr. Mehmet Oz, U.S. Department of Health and Human Services. (jam) (Entered: 03/12/2026)

RECAP
27 March 12, 2026

(Text-Only) MINUTE ENTRY for proceedings held before Judge Eric C. Tostrud on 3/12/2026: Oral Arguments Motion Hearing.Court Reporter: Tim WilletteSt. Paul Courthouse, Courtroom 7DTime: 10:02 a.m. - 11:30 a.m.Total Time: 1 hour and 28 minutesAPPEARANCES:For Plaintiffs: Nate Brennaman; Scott Ikeda; Emily DoyleFor Defendants: Matthew Zorn PROCEEDINGS: Hearing on: 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota. The motion was moved, argued and taken under advisement. Order to follow. (KMW) (Entered: 03/12/2026)

RECAP
28 March 13, 2026

TRANSCRIPT REQUEST for an Expedited 3-Day Transcript of 27 Motion Hearing,, to Court Reporter Tim Willette. (Fuller, David) (Entered: 03/13/2026)

RECAP
29 March 13, 2026

TRANSCRIPT REQUEST for an Expedited 3-Day Transcript for a COPY OF TRANSCRIPT 27 Motion Hearing,, to Court Reporter Tim Willette. (Brennaman, Nate) (Entered: 03/13/2026)

RECAP
30 March 13, 2026

TRANSCRIPT of Hearing on Motion for Temporary Restraining Order and Expedited Preliminary Injunction held on 3/12/2026 before Judge Eric C. Tostrud. (73 pages). Court Reporter: Tim Willette. For a copy of the transcript, please file a Transcript Request under Other Filings/Other Documents.Parties have 21 days to file a Statement of Redaction. In accordance with Judicial Conference policy and Local Rule 80.1, the transcript may be released and made remotely electronically available to the public in 90 days. For further information on redaction procedures, please review Local Rule 5.5 and Case Information >Transcripts, Court Reporters and Digital Audio Recordings. Statement of Redaction due 4/3/2026. Redacted Transcript Deadline set for 4/13/2026. Release of Transcript Restriction set for 6/11/2026. (TJW) (Entered: 03/13/2026)

RECAP
31 March 17, 2026

TEXT ONLY ENTRY: ORDER granting 26 Motion for Admission Pro Hac Vice of U.S. Government Attorney Matthew Charles Zorn for Centers for Medicare and Medicaid Services, the, Robert F. Kennedy, Jr, Dr. Mehmet Oz, and U.S. Department of Health and Human Services. Approved by Magistrate Judge David T. Schultz on 3/17/2026. (jam) (Entered: 03/17/2026)

RECAP
March 17, 2026

Order on Motion for Admission Pro Hac Vice of U.S. Government Attorney

32 March 20, 2026

LETTER TO DISTRICT JUDGE by Shireen Gandhi, State of Minnesota . (Boese, Brandon) (Entered: 03/20/2026)

RECAP
33 March 20, 2026

NOTICE by Centers for Medicare and Medicaid Services, the, Robert F. Kennedy, Jr, Dr. Mehmet Oz, U.S. Department of Health and Human Services (robc) (Attachments: # 1 Exhibit(s) CMS to MN CAP Approval Letter 3.19.26 FINAL EXHIBIT A (robc))(Zorn, Matthew) (Entered: 03/20/2026)

1 Exhibit(s) CMS to MN CAP Approval Letter 3.19.26 FINAL EXHIBIT A (robc)

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RECAP
34 March 23, 2026

(Text-Only) NOTICE: Telephone Status Conference set for 3/24/2026 at 4:00 PM by Zoom Audio-only Conference (no courtroom) before Judge Eric C. Tostrud. Instructions to join the conference have been sent to all counsel of record. Media and members of the public who wish to listen shall email tostrud_chambers@mnd.uscourts.gov no later than 3/24/2026 at 3:00 PM to obtain instructions. (RMM) (Entered: 03/23/2026)

RECAP
35 March 24, 2026

(Text-Only) MINUTE ENTRY for proceedings held before Judge Eric C. Tostrud on 3/24/2026: Telephone Status Conference.No Digital Recording.St. Paul Courthouse, Telephone ConferenceTime: 4:01 PM - 4:16 PMTotal Time: 15 MinutesAPPEARANCES:For Plaintiff(s): Scott Ikeda, Brandon Boese and Emily DoyleFor Defendant(s): Matthew Zorn PROCEEDINGS: Discussion regarding case status. Plaintiffs' supplemental brief regarding the impact of CMS's approval of the State's revised corrective action plan is due on or before 3/27/2026. Defendants' response is due on or before 4/2/2026.Defendants' supplemental brief regarding the impact of ongoing administrative proceedings is due on or before 3/27/2026. Plaintiffs' response is due on or before 4/2/2026.Unless otherwise ordered, briefs are limited to 2,500 words in length. (RMM) (Entered: 03/24/2026)

RECAP
36 March 27, 2026

MEMORANDUM in Support re 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested Supplemental filed by Shireen Gandhi, State of Minnesota. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Boese, Brandon) (Entered: 03/27/2026)

1 LR7.1/LR72.2 Word Count Compliance Certificate

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RECAP
37 March 27, 2026

BRIEF re 34 Notice of Hearing, . (Attachments: # 1 Final Supplemental Brief)(Zorn, Matthew) (Entered: 03/27/2026)

1 Final Supplemental Brief

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RECAP
38 March 30, 2026

BRIEF re 34 Notice of Hearing, Defendants Supp Brief (corrected) re 2 in Opp to Minnesotas Motion for TRO. (Attachments: # 1 Exhibit(s) Howe Declaration)(Zorn, Matthew) (Entered: 03/30/2026)

RECAP
39 April 2, 2026

RESPONSE re 36 Memorandum in Support of Motion, (Response to Defs Supplemental Brief) filed by Shireen Gandhi, State of Minnesota. (Attachments: # 1 LR7.1/LR72.2 Word Count Compliance Certificate)(Boese, Brandon) (Entered: 04/02/2026)

1 LR7.1/LR72.2 Word Count Compliance Certificate

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RECAP
40 April 2, 2026

Second Declaration of Patrick Hultman in Support of 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota.(Boese, Brandon) (Entered: 04/02/2026)

RECAP
41 April 2, 2026

Second Declaration of Nate Brennaman in Support of 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested filed by Shireen Gandhi, State of Minnesota. (Attachments: # 1 Exhibit(s) 1, # 2 Exhibit(s) 2)(Boese, Brandon) (Entered: 04/02/2026)

1 Exhibit(s) 1

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2 Exhibit(s) 2

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RECAP
42 April 2, 2026

BRIEF re 2 MOTION for Temporary Restraining Order and Expedited Preliminary Injunction - Expedited Handling Requested Defendants' response brief re 2 in opposition to Plaintiffs Memorandum in support of Motion for Temporary Restraining Order filed by Centers for Medicare and Medicaid Services, the, Robert F. Kennedy, Jr, Dr. Mehmet Oz, U.S. Department of Health and Human Services.(Zorn, Matthew) (Entered: 04/02/2026)

RECAP
43 April 6, 2026

OPINION AND ORDER: Plaintiffs' Motion for Temporary Restraining Order and Expedited Preliminary Injunction 2 is DENIED. LET JUDGMENT BE ENTERED ACCORDINGLY. (Written Opinion). Signed by Judge Eric C. Tostrud on 4/6/2026. (RMM) (Entered: 04/06/2026)

Clearinghouse
44 April 7, 2026

JUDGMENT (Attachments: # 1 Civil Notice - appeal)(MMG) (Entered: 04/07/2026)

1 Civil Notice - appeal

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RECAP

Case Details

State / Territory:

Minnesota

Case Type(s):

Public Benefits/Government Services

Special Collection(s):

Trump Administration 2.0: Challenges to the Government

Key Dates

Filing Date: March 2, 2026

Case Ongoing: Yes

Plaintiffs

Plaintiff Description:

Plaintiffs are the State of Minnesota and the Commissioner of the Minnesota Department of Human Services (“DHS”)

Plaintiff Type(s):

State Plaintiff

Public Interest Lawyer: No

Filed Pro Se: No

Class Action Sought: No

Class Action Outcome: Not sought

Defendants

Federal

United States Department of Health and Human Services

Defendant Type(s):

Jurisdiction-wide

Case Details

Causes of Action:

Administrative Procedure Act, 5 U.S.C. §§ 551 et seq.

Constitutional Clause(s):

Due Process: Procedural Due Process

Spending/Appropriations Clauses

Other Dockets:

District of Minnesota 0:26-cv-01701

Available Documents:

Any published opinion

Complaint (any)

Trial Court Docket

Outcome

Prevailing Party: None Yet / None

Relief Sought:

Injunction

Relief Granted:

None yet

Source of Relief:

None yet

Issues

General/Misc.:

Funding

Government services

Benefits (Source):

Medicaid

Recommended Citation