CITY CASTTwin Cities
City Cast Twin Cities

City Cast Twin Cities

🩺 More Medicaid fraud fallout

February 27, 2026 · Anna Weggel and Sean McPherson edited the City Cast Twin Cities newsletter this week. Feedback? Email [email protected].

Good morning, Twin Cities! Tiffany here. You’ve heard of bodega cats, but how about vintage store cats? The newly opened Clothing4NakedPeople in Dinkytown has not one, not two, but three cats. The owner told us the cats will curl up in clothing piles even when he brings them home. Back in my day, the shop was home to Dinkytown Tattoo!

An orange cat lounging on a green pillow
The kitties were right at home on the vintage pillows. (Tiffany Bui / City Cast Twin Cities)

Today’s Must-Know

A group of people wearing jackets that say "FBI" on it walking
Federal agents searched Ultimate Home Health Services in Bloomington over potential Medicaid fraud on December 18, 2025. (Christopher Juhn/Anadolu via Getty Images)

Underreacting/overreacting to fraud?

What seemed like a sprawling yet straightforward prosecution of social services fraud has led to a lot of other consequences for Minnesota, in no small part due to President Donald Trump’s ire. In the latest breathtaking update, Vice President J.D. Vance announced yesterday that the federal government is withholding $259 million in Medicaid funding from Minnesota until the state can prove it’s being “good stewards of the American people’s tax money.” The state has 60 days to submit a plan to address Medicaid fraud. [Minnesota Reformer / Star Tribune]

  • AG steps in: The Reformer’s Alyssa Chen also reports the Minnesota Attorney General is investigating 200 providers for fraud across more than a dozen Medicaid services. These services help the elderly and people with disabilities. Really interesting that the state AG is getting in on this, given the unprecedented exodus from the U.S. Attorney’s Office, which led the investigation (with a fuller office) before the ICE surge. [Minnesota Reformer / Mother Jones]
  • Thrown “under the bus”: A relatively unknown (to me) right-wing YouTuber spurring the Trump administration to send thousands of ICE agents into the Twin Cities wasn’t on my bingo card for this fraud fallout. But the daycares featured in Nick Shirley’s video are hitting back. Three daycares are suing the Minnesota State Department of Children, Youth and Families, alleging that the state began investigating them in “bad faith” after Shirley’s video. They also argue that the daycares were thrown “under the bus.” [WCCO]

What the Cities Are Talking About

Wait, how many agents? Last Friday, the Department of Homeland Security said there were fewer than 500 federal agents left in the state. But new federal court filings reported that as of Monday, less than 1,000 agents remain. ICE will keep about 400 agents in Minnesota in March. [Sahan Journal / Minnesota Reformer]

Hear ye, hear ye: Shakopee’s Renaissance Festival is jostling with 20 other Ren Fairs across the country to be voted the nation’s best. USA Today’s 10Best selected the finalists, and voting ends Monday. Cast your vote here. [Bring Me The News]

A flight of four drinks on a wood board. From left to right a sign reads "Pina Calada Matcha. Cherry White Mocha. Butterfly Pea Lemonade. Rosemary Cold Brew" From left to right, the first drink is green with white foam, the second drink is more tan with cherries on a toothpick, the third drink is purple with a lemon, the fourth is more of a brown coffee with white cream on top.
A coffee flight at C.R.E.A.M Cafe in downtown Minneapolis. (Tiffany Bui / City Cast Twin Cities)

Iconic combo: Two of my fave restaurants under one roof! C.R.E.A.M Cafe announced they’ll be sharing their space with Soul Bowl, after the latter moved out of its North Minneapolis location about a month ago. Get the coffee flight of the moment and the Caribe. Thank me later. [Instagram]

Tower for sale: How much would you break your lease for? Target paid $110 million to end its lease with City Center, a 51-story tower in downtown Minneapolis. The Star Tribune’s Katie Galioto reports Target moved its workers out five years ago, and the office has sat dark since. [Star Tribune]

Your next listen: The latest episode of City Cast’s national show, Your City Could Be Better, features Pittsburgh host Megan Harris. She talks about downtown revitalization (very relevant to the Twin Cities) and the city’s rent abatement partnership that could fill 50 vacant properties. [Your City Could Be Better]

What to Do

Friday, Feb 27

Saturday, Feb 28

Sunday, Mar 1

More Twin Cities Events

Twin Cities Job Board

More Twin Cities Jobs

A warm welcome to our newest Neighbor, Eileen C. I bet Eileen always splits the last piece of leftovers with a friend. That’s just the feeling I get. 🍰

— Tiffany

Free · Daily

More from City Cast Twin Cities

Read latest