Minnesota social services fraud investigation

Live UpdatesLast updated
SUMMARY

The U.S. Department of Health and Human Services and the Centers for Medicare and Medicaid Services announced on July 27, 2026, they are withholding nearly $200 million in federal Medicaid payments to Minnesota due to suspected fraud, part of over $1 billion in paused federal Medicaid payments nationwide. As of July 27, 2026, four men have pleaded guilty to defrauding Minnesota's Housing Stabilization Services program of approximately $2.2 million, and a House Oversight Committee report alleges senior state officials, including Governor Tim Walz and Attorney General Keith Ellison, were aware of significant fraud for years. Federal authorities also arrested Abdikerm Abdelahi Eidleh in Mogadishu, Somalia, a key suspect in Minnesota's $250 million Feeding Our Future fraud case. Minnesota has established a fully independent Office of Inspector General to investigate fraud within state social services programs, and the House Oversight Committee passed bipartisan legislation aimed at combating social services fraud.

Timeline

Want updates on this thread?

Track this story

July 2026 — 3 developments

  1. US Withholds $200 Million in Minnesota Medicaid Payments Over Suspected Fraud

    The U.S. Department of Health and Human Services and the Centers for Medicare and Medicaid Services announced they are withholding nearly $200 million in federal Medicaid payments to Minnesota due to suspected fraud. This action is part of a larger effort that also includes approximately $867 million withheld from California, bringing the total paused federal Medicaid payments to over $1 billion.

  2. House Committee Passes Legislation to Combat Social Services Fraud Amid Minnesota Investigations

    The House Oversight Committee passed bipartisan legislation aimed at combating social services fraud, following a GAO report affirming the need for such measures. This legislative action comes amid ongoing investigations and recent guilty pleas in Minnesota social services fraud cases. A separate report from June 2026 accused Minnesota officials of ignoring fraud warnings as early as 2019.

  3. Four Men Plead Guilty to $2.2M Minnesota Social Services Fraud; New Inspector General Office Established

    Four men have pleaded guilty to defrauding Minnesota's Housing Stabilization Services program of approximately $2.2 million. This development comes as Minnesota established a fully independent Office of Inspector General in 2026 to investigate fraud within state social services programs, a legislative response to ongoing issues and federal investigations.

June 2026 — 14 developments

  1. DOJ sues Minnesota over SNAP data in social services fraud probe

    The U.S. Department of Justice is suing Minnesota for refusing to provide Supplemental Nutrition Assistance Program (SNAP) data, which is needed for verifying eligibility and detecting fraud. This lawsuit is part of broader investigations into fraud within Minnesota's social services programs.

  2. Minnesota Officials Accused of Ignoring Years of Social Services Fraud; Key Suspect Arrested

    A House Oversight Committee report details how senior state officials, including Governor Tim Walz and Attorney General Keith Ellison, were allegedly aware of significant fraud for years but failed to act decisively, with employees who raised concerns allegedly facing retaliation. Additionally, an alleged leader in the Feeding Our Future fraud case has been arrested in Somalia, and seven individuals have been charged for Medicaid fraud schemes totaling over $700,000.

  3. Suspect Arrested in Minnesota's $250M Feeding Our Future Fraud Case; New Inspector General Office Established

    Federal authorities announced the arrest of Abdikerm Abdelahi Eidleh in Mogadishu, Somalia, a key suspect in Minnesota's $250 million Feeding Our Future fraud case. A House Oversight Committee report accuses state officials of being aware of significant fraud for years but failing to act, estimating billions in taxpayer losses. Senator Mark Koran has been appointed to oversee the new Office of Inspector General aimed at combating fraud within state agencies.

  4. Minnesota DHS Official Testifies on Significant Fraud in Autism Services Program

    Minnesota DHS Temporary Commissioner John Connolly testified before a U.S. House subcommittee on June 25, 2026, acknowledging "significant fraud" in the state's autism services program. Connolly stated that since 2020, the DHS has conducted over 4,000 investigations, identified over $50 million for recovery, and referred over 1,150 cases to law enforcement.

  5. Six Minnesotans Charged in $6.5 Billion Healthcare Fraud Crackdown; New Oversight Office Established

    Six Minnesotans have been charged in connection with a nationwide healthcare fraud crackdown that resulted in $6.5 billion in fraudulent claims. Additionally, Minnesota lawmakers have established an independent Office of Inspector General to strengthen oversight and accountability in social services programs in response to investigations revealing billions of dollars in potential fraud.

  6. DOJ announces nationwide healthcare fraud charges, with significant activity in Minnesota

    The Department of Justice has announced nationwide healthcare fraud charges totaling billions of dollars, with significant activity identified in Minnesota. This action follows investigations into social service program fraud in Minnesota, which have uncovered an estimated $9 billion in losses from taxpayer funds.

  7. Lawsuit alleges Minnesota DHS intentionally dismantled social services program

    A lawsuit has been filed against Minnesota's Department of Human Services, alleging the intentional dismantling of its Family Residential Services program. This action follows the recent disenrollment of thousands of providers in 14 Medicaid programs deemed high-risk for fraud.

  8. Seven Charged in Minnesota for Defrauding Taxpayers of Over $700,000

    Seven individuals have been charged for defrauding Minnesota taxpayers of over $700,000 through various Medicaid fraud schemes. Among those charged were Tremayne Jackson, accused of defrauding the state's medical assistance program of over $125,000, and Christine Pryor, accused of defrauding the program of over $150,000 by providing unlicensed psychotherapy services.

  10. House Passes Fraud Bills Amidst Minnesota Social Services Investigation, $9 Billion Losses Highlighted

    The House has passed multiple bills aimed at combating fraud in federal programs, including the Stopping Fraudulent Payments Act, following investigations into Minnesota's social services programs where Chairman James Comer highlighted estimated losses of $9 billion. Federal agencies are increasingly using AI to combat fraud in social service programs, and a court denied Minnesota's request to block the deferral of $350 million in federal Medicaid funding.

  11. Minnesota AG Disagrees with House Report on Social Services Fraud, Calls it a Joke

    Minnesota officials, including Attorney General Keith Ellison, have stated they disagree with much of the U.S. House Oversight Committee's report on social services fraud. Governor Walz's office criticized the report, calling it 'nothing more than a joke.'

  12. Minnesota AG Charges Former Care Coordinator in $185K Medicaid Fraud Scheme

    The Minnesota Attorney General's office charged a former care coordinator with stealing over $185,000 through fraudulent Medicaid billing on June 11, 2026. This charge is part of a larger investigation into significant fraud within Minnesota's social services programs.

  13. VP Vance Refers MN Fraud Allegations to DOJ for Criminal Investigation into Governor, AG

    A House Oversight Committee report released on June 8, 2026, alleges that Minnesota officials ignored warnings of widespread fraud in federally funded social programs as early as 2019, potentially allowing billions of dollars to be diverted. Vice President JD Vance has referred these allegations to the Department of Justice for a criminal investigation into Governor Tim Walz and Attorney General Keith Ellison. The report claims state officials had the authority to halt payments and ban fraudulent providers but failed to do so.

  14. Minnesota Disenrolls 60% of Medicaid Providers Amidst Ongoing Fraud Investigation

    Minnesota's Department of Human Services disenrolled 60% of providers from high-risk Medicaid programs on June 4, 2026, as part of an effort to combat fraud. This action follows federal charges announced on May 21, 2026, against fifteen defendants for defrauding Minnesota's social service programs of over $90 million.

May 2026 — 12 developments

  1. CMS Defers $350M in Medicaid Funds to Minnesota Over Fraud Oversight Failures

    The Centers for Medicare & Medicaid Services (CMS) have deferred over $350 million in federal Medicaid match payments to Minnesota, requiring a corrective action plan due to insufficient oversight. This action follows intensifying federal scrutiny over numerous high-profile fraud investigations within the state's Medicaid programs.

  2. Two Arrested in Minnesota for Alleged $21.1 Million Medicaid Fraud Scheme

    Two Minnesota residents were arrested on May 27, 2026, for an alleged $21.1 million Medicaid fraud scheme spanning over four years. This development is part of ongoing federal investigations into healthcare fraud schemes targeting Minnesota Medicaid programs, which have already led to charges against 15 defendants for over $90 million in alleged fraud.

  3. Minnesota Housing Program Closed Due to Fraud; AG's Office Expands Investigation Powers

    The Housing Stabilization Services program in Minnesota closed in October 2025 due to fraud, with losses estimated at nearly $16 million. Minnesota's Attorney General Keith Ellison's office has passed a bill to expand its ability to investigate and prosecute fraud within the state's Medical Assistance program.

  4. Aimee Bock sentenced to nearly 42 years for $250 million fraud scheme

    Aimee Bock, former leader of Feeding Our Future, has been sentenced to nearly 42 years in prison for a $250 million fraud case. Her organization was at the center of the largest COVID-19 fraud scheme in the country. This sentencing is part of a broader investigation into alleged fraud schemes targeting social service programs in Minnesota.

  5. DOJ charges 15 in $90M Minnesota healthcare fraud; state strengthens anti-fraud measures

    The U.S. Department of Justice announced charges against 15 individuals for defrauding a government healthcare program of $90 million, the largest autism fraud scheme ever prosecuted by the DOJ. Minnesota lawmakers passed a bill to strengthen state agencies' ability to withhold payments to suspected fraudsters, and the Department of Human Services froze provider enrollment for 13 Medicaid services and paused licensing for home and community-based services.

  6. Federal authorities charge 15 in Minnesota for $90 million social services fraud

    Federal authorities announced criminal charges against 15 individuals in Minnesota for allegedly defrauding taxpayer-funded social service programs of over $90 million. The schemes targeted seven state-managed Medicaid programs, among others, and included allegations of falsifying meal counts for children, inflating staff hours, and fraudulent Medicaid billings for housing and disability services. This action follows the recent sentencing of Aimee Bock, founder of Feeding Our Future.

  7. Federal prosecutors seek 50-year sentence for Feeding Our Future founder; new indictments unsealed

    Federal prosecutors are seeking a 50-year prison sentence for Aimee Bock, founder of Feeding Our Future, who was convicted of orchestrating a large COVID-19 fraud scheme. On the same day, new indictments were unsealed against three individuals accused of defrauding Minnesota Medicaid programs of over $3.6 million by submitting false claims for services never provided.

  8. Minnesota social services fraud probe targets Somali businesses, funds allegedly sent overseas

    Federal agents conducted raids in April 2026 targeting Somali-owned businesses as part of a broader inquiry into an estimated $9 billion in social services fraud. Funds were allegedly used for luxury items and funneled to overseas terrorist networks. House Oversight Committee Chairman James Comer held hearings in January 2026 to examine failures and ensure accountability.

  10. Minnesota House committee releases report detailing $9 billion in social services fraud

    A Republican-led committee in the Minnesota House has released a final report detailing significant fraud within the state's social services programs. The report claims over $9 billion in fraud has gone unchecked, with blame placed on the administrations of Governor Tim Walz and former Governor Mark Dayton. Whistleblower testimonies suggest a "culture of fraud" enabled by negligence and mismanagement.

  11. Former Feeding Our Future official accused of defrauding program; Comer announces hearing

    A former official with Feeding Our Future has been accused of defrauding the child meal program of millions of dollars. House Oversight Committee Chairman James Comer announced a hearing for July 20 to examine the scandal and widespread fraud in Minnesota's social services programs. Comer also issued statements alleging inaction by state leadership, including Governor Tim Walz and Attorney General Keith Ellison, despite years of awareness of the fraud.

  12. Federal agents expand Minnesota social services fraud probe; lawmakers advance oversight bill

    House Oversight Committee Chairman James Comer has widened his investigation into Minnesota's social services programs, with federal law enforcement conducting raids and investigations into fraud. Concurrently, Minnesota lawmakers are advancing a bill to create a new Office of Inspector General to investigate fraud across state government.

April 2026 — 16 developments

  1. Federal agents execute search warrants in Minnesota social services fraud probe

    Federal agents executed over 20 search warrants across Minnesota as part of an ongoing investigation into social services fraud, primarily targeting childcare facilities receiving federal funding. The Department of Homeland Security stated the warrants relate to "the rampant fraud of American taxpayers dollars." Minnesota Governor Tim Walz welcomed the joint state and federal efforts, stating that raids occurred because state agencies identified and reported irregular behavior.

  2. Minnesota sues CMS, revises CAP, and revalidates Medicaid providers

    Minnesota has filed a lawsuit against the Centers for Medicare & Medicaid Services (CMS) and revised its Corrective Action Plan (CAP) in response to CMS imposing financial penalties and deferring federal matching funds. The state has also initiated a revalidation process for Medicaid providers, including unannounced site visits, to verify their operations and compliance.

  3. Minnesota House Committee Halts Impeachment Proceedings Against Walz, Ellison

    A resolution to impeach Minnesota Governor Tim Walz and Attorney General Keith Ellison failed on an 8-8 vote in the Minnesota House Rules and Legislative Administration Committee on April 15, 2026. This action halts the impeachment proceedings for now, despite ongoing investigations into significant fraud within Minnesota's social services.

  4. Minnesota Officials Push Legislative Changes to Combat Medicaid Fraud

    Minnesota officials are pushing for legislative changes to strengthen their ability to withhold payments to providers suspected of fraud. State lawmakers are considering a bipartisan bill to increase staffing for the Attorney General's Medicaid Fraud Control Unit and potentially establish a new Office of Inspector General. Governor Tim Walz's administration has proposed measures to tighten oversight of the Medicaid program, including more stringent provider vetting and improved fee review systems.

  5. Comer Criticizes Walz, Ellison Over Social Services Fraud, Citing Whistleblower Warnings

    House Oversight Committee Chairman James Comer criticized Minnesota Governor Tim Walz and Attorney General Keith Ellison, suggesting they were complicit or negligent in the social services fraud, and ignored whistleblower warnings. Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz indicated that similar fraud patterns could represent a nationwide problem potentially costing $100 billion.

  6. Minnesota Officials Advocate for Stronger Fraud Safeguards Amidst Medicaid Fraud Allegations

    Minnesota officials are advocating for legislative changes to make it easier to withhold payments to providers suspected of fraud, by adopting a "credible allegation" standard. The House Oversight Committee is holding hearings on alleged fraud and misuse of federal funds, with Chairman James Comer calling for stronger safeguards. Separately, a man accused of an $11 million Medicaid fraud scheme failed to appear in court.

  7. Minnesota AG Ellison's Medicaid fraud bill passes Senate committee

    Minnesota Attorney General Keith Ellison's proposed legislation to combat Medicaid fraud has passed a Senate committee. This development is part of ongoing efforts to address widespread fraud within Minnesota's social services programs, which federal prosecutors estimate has caused at least $9 billion in losses.

  8. Brothers Suleman and Gandi Mohamed plead guilty in Feeding Our Future fraud

    Brothers Suleman Yusuf Mohamed and Gandi Yusuf Mohamed pleaded guilty on April 9, 2026, in connection with the Feeding Our Future fraud scheme, with Suleman admitting to receiving approximately $10.1 million. Separately, Abdirashid Ismail Said, the primary suspect in Minnesota's largest-ever Medicaid fraud prosecution for nearly $11 million, has disappeared, and an arrest warrant has been issued.

  9. Minnesota Lawmakers Pass Anti-Fraud Measures Amidst Ongoing Investigations

    Minnesota lawmakers have passed anti-fraud measures and are discussing legislation to strengthen oversight in response to ongoing investigations. A former state employee is under criminal investigation for fabricating records related to grants, and the Attorney General's office is involved in probing an estimated $9 billion in stolen federal funds.

  10. House Oversight Committee Expands Probe into Minnesota Social Services Fraud

    The House Oversight Committee is expanding its investigation into Minnesota social services programs, with a Minnesota agency admitting to fraud attempts in its $100 million small business grant program. A recent audit also identified a potential legal loophole in the state's definition of fraud, adding to ongoing probes.

  12. Minnesota DHS enhances Medicaid fraud prevention with site visits and provider revalidation

    A man accused of defrauding Minnesota's Medicaid program of nearly $11 million has failed to appear in court, leading to an arrest warrant. Meanwhile, the Minnesota Department of Human Services is enhancing fraud prevention by conducting unannounced site visits for over 5,500 Medicaid providers, disenrolling 160 providers, and revalidating all providers by May 31, 2026.

  13. Minnesota Couple Charged with $861,000 SNAP and Medical Assistance Fraud

    A Minnesota couple has been charged with allegedly receiving $861,000 in fraudulent SNAP and medical assistance benefits. This development adds to the ongoing investigations and brings the total number of convictions in the Feeding Our Future fraud scheme to 65.

  14. Minnesota DHS Halts Payments to ICS Providers Amid Fraud Allegations

    The Minnesota Department of Human Services has stopped payments to certain Integrated Community Supports (ICS) providers following credible allegations of fraud. This action was taken as the Fraud Prevention and State Agency Oversight Committee in Minnesota convenes to discuss fraud-related issues.

  15. Treasury, IRS, and House Oversight target child nutrition program fraud

    The U.S. Department of the Treasury, through FinCEN, has issued alerts to financial institutions to identify and report fraud associated with federal child nutrition programs. The IRS is also forming a task force to investigate related tax incentive fraud, complementing efforts by the House Oversight Committee and the DOJ.

  16. White House establishes task force to eliminate fraud amid Minnesota terror funding concerns

    The House Oversight Committee released testimony alleging Minnesota state officials were aware of widespread fraud for years but failed to act, and the White House announced the establishment of a Task Force to Eliminate Fraud, citing potential funneling of fraudulent funds to terror groups in Minnesota. These developments occurred on March 4, 2026, amidst ongoing investigations into billions of dollars in alleged fraud.

March 2026 — 5 developments

  1. Audit finds Minnesota DHS may have failed to investigate Medicaid kickback allegations

    A new audit by the Office of the Legislative Auditor reveals that the Minnesota Department of Human Services (DHS) may have failed to properly investigate Medicaid kickback allegations. The audit suggests DHS had the legal authority to investigate these kickbacks since the late 1990s and that its Office of Inspector General possessed the authority to pursue such cases independently.

  2. Minnesota Human Services Officials Miss Fraud Hearing; Governor Walz Announces Reform Plans

    Officials from the Minnesota Department of Human Services missed a state House fraud prevention panel hearing on March 11, 2026, drawing criticism from the committee chair. Concurrently, Governor Tim Walz announced plans for reform to combat fraud in state programs. This development occurs amidst ongoing investigations into billions of dollars in alleged fraud within Minnesota's social services and Medicaid programs.

  3. Comer Initiates Hearings on Minnesota Fraud, Alleges Walz and Ellison Knew of Concerns

    House Oversight Committee Chairman James Comer initiated hearings on Minnesota fraud, stating federal prosecutors estimate up to $9 billion lost from fourteen Medicaid programs. Comer asserted that testimony and documents indicate Governor Walz and Attorney General Ellison were aware of fraud concerns as early as 2019 but delayed corrective action. The committee's report alleges approximately $300 million in federal child nutrition funds and $9 billion in Medicaid funds were potentially stolen.

  4. Minnesota Governor Walz, AG Ellison testify before House Oversight Committee on social services fraud

    Minnesota Governor Tim Walz and Attorney General Keith Ellison testified before the House Oversight Committee on March 4, 2026, concerning fraud in the state's social services programs. A committee report released prior to the testimony accused them of ignoring fraud concerns, alleging they were aware of issues in programs like Feeding Our Future but continued payments due to fears of lawsuits and discrimination accusations. The hearing focused on allegations of billions of dollars in taxpayer funds being stolen.

  5. Shireen Gandhi appointed Minnesota Human Services Commissioner amid fraud allegations

    Shireen Gandhi has been appointed the permanent commissioner of Minnesota's Department of Human Services as the state addresses significant fraud allegations. While President Trump claimed $19 billion in fraud, Gandhi stated that the verified amount so far is at least $300 million. The federal government is withholding $259 million in Medicaid funding, giving Minnesota 60 days to demonstrate it has addressed fraud in its programs.

February 2026 — 14 developments

  1. Minnesota Governor Walz Introduces AI-Powered Anti-Fraud Legislative Package

    Minnesota Governor Tim Walz has introduced a legislative package to combat fraud in state programs, incorporating AI and machine learning for earlier detection of suspicious transactions. This initiative aims to bolster investigative authority, increase criminal penalties, and strengthen program integrity. The package builds upon previous efforts to address fraud that has been rampant during the COVID-19 pandemic.

  2. CMS freezes $259.5 million in federal Medicaid funding to Minnesota over unsupported claims

    The U.S. Centers for Medicare & Medicaid Services (CMS) is freezing $259.5 million in federal Medicaid funding to Minnesota due to unsupported or potentially fraudulent claims. Vice President J.D. Vance stated this action is to ensure Minnesota responsibly stewards taxpayer money. The freeze covers claims from July to September 2025, with a significant portion related to unsupported or fraudulent claims.

  3. Minnesota AG investigates 200 healthcare providers for potential Medicaid fraud

    The Minnesota Attorney General's Office is investigating approximately 200 health care and social service providers for potential fraud across 14 Medicaid services. Nick Wanka, director of the office's Medicaid Fraud Control Unit, stated that some individuals operate multiple agencies, potentially increasing the total number of provider agencies. These high-risk Medicaid programs serve vulnerable populations, including those with disabilities and autistic youth.

  4. Comer Schedules Second Hearing on Minnesota Fraud, Walz and Ellison to Testify

    House Oversight Committee Chairman James Comer announced a second hearing on Minnesota's social services fraud, scheduled for March 4, 2026, to feature testimony from Governor Tim Walz and Attorney General Keith Ellison. Comer stated that state lawmakers testified that Walz and Ellison ignored warnings and retaliated against employees who raised concerns about widespread fraud, with federal prosecutors estimating at least $9 billion in taxpayer funds have been stolen.

  5. Minnesota Program Integrity Director O'Malley releases fraud prevention roadmap, cites decades of warnings

    Minnesota's Director of Program Integrity, Tim O'Malley, released a 'Roadmap to Program Integrity and Fraud Prevention' on February 23, 2026, highlighting that state agencies have been warned about social services program vulnerabilities since the 1970s. O'Malley, a former FBI agent, stated the state has 'long-standing vulnerabilities' that have been exploited by fraudsters and recommended the appointment of a 'skilled independent monitor.' The report details how repeated failures to act on warnings have allowed criminals to steal taxpayer dollars for decades.

  6. Minnesota Lawmakers Renew Efforts for Inspector General Amidst $9 Billion Fraud Allegations

    Minnesota lawmakers are renewing efforts to establish a statewide Office of Inspector General with law enforcement and subpoena powers to investigate fraud across state government. This comes as the House Oversight Committee held a hearing on the matter, with Chairman James Comer stating federal prosecutors estimate at least $9 billion in taxpayer funds have been stolen. The U.S. Department of Health and Human Services has also frozen federal child care funding for Minnesota due to fraud allegations.

  7. Minnesota Star Tribune reports social services fraud closer to $200 million, not billions

    The Minnesota Star Tribune reported that alleged fraud uncovered so far in the social services investigation is closer to $200 million, a figure that contrasts with previous estimates of billions. Officials released a heavily censored audit of social services billing, citing trade secrets and security concerns for the redactions, which frustrated lawmakers.

  8. Minnesota Officials Censor Social Services Billing Audit, Frustrating Lawmakers

    Minnesota officials have released a heavily censored third-party audit of social services billing, drawing frustration from lawmakers. The Department of Human Services redacted significant portions of the report, citing trade secrets and security concerns. This action hinders efforts to identify policy changes needed to prevent misconduct in the state's social services programs.

  9. Federal prosecutors estimate over $9 billion in potential Minnesota Medicaid fraud since 2018

    Federal prosecutors estimate that "half or more" of the approximately $18 billion in Medicaid funds distributed in Minnesota since 2018 may have been stolen. A former federal prosecutor suggested the total fraud could exceed $9 billion, a figure disputed by Governor Tim Walz. The Housing Stabilization Services program, which saw significant growth before being shut down due to fraud, is one example of the affected programs.

  10. Federal prosecutors charge dozens in Minnesota Somali diaspora fraud scheme

    Federal prosecutors have charged dozens of individuals in connection with a large-scale fraud scheme in Minnesota, alleging billions of dollars were siphoned from federal and state grant programs. The accusations center on members of the Somali diaspora allegedly creating shell companies to claim public funds. This development highlights significant gaps in state oversight.

  11. Philadelphia men plead guilty to $3.5 million Minnesota housing fraud

    Two men from Philadelphia have pleaded guilty to wire fraud for their role in a scheme that defrauded Minnesota's Housing Stabilization Services program of approximately $3.5 million. Anthony Waddell Jefferson and Lester Brown admitted to traveling to Minnesota to establish businesses and enroll in the program, ultimately siphoning federal funds.

  12. Optum review confirms widespread vulnerabilities in Minnesota's Medicaid system

    A state-commissioned review by Optum has confirmed widespread vulnerabilities in Minnesota's Medicaid system, allowing questionable billing to go undetected and costing taxpayers tens of millions of dollars. Additionally, a report on the state's Medicaid-funded autism intervention program revealed widespread billing irregularities, with 90% of claims from providers veering from acceptable standards over a four-year period.

  13. House Oversight Chairman James Comer investigates companies linked to Ilhan Omar's husband

    House Oversight Chairman James Comer is investigating companies linked to Ilhan Omar's husband, Tim Mynett, due to a dramatic increase in their value and potential ties to widespread fraud schemes in Minnesota. Separately, a state-commissioned review by Optum has confirmed widespread vulnerabilities in Minnesota's Medicaid system, allowing questionable billing to go undetected and costing taxpayers tens of millions of dollars.

  14. Four lead prosecutors resign from U.S. Attorney's Office amid Minnesota fraud case

    Four lead prosecutors who were spearheading a $250 million Minnesota fraud case have resigned from the U.S. Attorney's Office. Federal prosecutors are investigating approximately $18 billion spent on social programs in Minnesota since 2018, with estimates suggesting over half of that amount could be fraud.

January 2026 — 35 developments

  1. Walz and Ellison to testify before House Oversight Committee on Minnesota fraud investigation

    Federal prosecutors have charged 98 defendants in Minnesota fraud cases, with 85 of Somali descent, and have secured 64 convictions to date. Fourteen Minnesota programs have been flagged for fraud, with estimates suggesting over $9 billion in taxpayer funds may have been stolen. Governor Tim Walz and Attorney General Keith Ellison are scheduled to testify before the House Oversight Committee on March 4, 2026, regarding the ongoing investigation.

  2. Walz and Ellison to Testify Before House Oversight Committee on Social Services Fraud

    Minnesota Governor Tim Walz and Attorney General Keith Ellison are scheduled to testify before the House Oversight Committee on March 4, 2026. The hearing will address alleged fraud within the state's social services programs. This testimony is part of an expanded investigation into the matter.

  5. Chairman Smith urges IRS action in 'Feeding Our Future' scandal amid fraud investigation deaths

    The intensified investigation into fraud at Minnesota social service organizations has reportedly led to two deaths and one wounding. Additionally, House Ways and Means Committee Chairman Jason Smith has urged the IRS to take action against the 'Feeding Our Future' scandal.

  7. Department of Homeland Security increases immigration enforcement following fraud investigation

    The Department of Homeland Security has increased its Immigration and Custody Enforcement efforts following the intensified investigation into fraud at social service organizations in Minnesota. This action comes seven weeks after the U.S. Department of Justice intensified its own investigation.

  8. Minnesota DHS employee alleges $9 billion taxpayer funds stolen across 14 welfare programs

    A Minnesota Department of Human Services employee, Faye Bernstein, has emerged as a whistleblower, alleging that over $9 billion in taxpayer funds may have been stolen across 14 state welfare programs since 2018. She claims her warnings about the widespread fraud were ignored by colleagues.

  9. Senate Republicans form task force led by Cassidy to address federal funding fraud

    A group of Senate Republicans has formed a task force, led by Senator Bill Cassidy, to address federal funding fraud, prompted by the ongoing Minnesota social services scandal. The task force will focus on fraud within health, education, and welfare programs.

  11. CMS directs Minnesota to limit provider enrollment amid fraud concerns; House Committee to hold hearing

    The Centers for Medicare & Medicaid Services (CMS) has directed Minnesota to limit provider enrollment due to the state's failure to combat fraud, leading to the Minnesota Department of Human Services appealing a federal decision to withhold over $2 billion in Medicaid funding. Additionally, Chairman James Comer announced that the House Committee on Oversight and Government Reform will hold a hearing on January 7, 2026, titled "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I."

  12. Minnesota charges six more, one pleads guilty in social services fraud; new anti-fraud laws take effect

    Six additional defendants have been charged and one has pleaded guilty in the ongoing fraud schemes targeting Minnesota's social services. Furthermore, new anti-fraud laws, including whistleblower protections and payment freezes for suspected fraudsters, took effect in Minnesota in July 2025.

  13. Trump administration targets Minnesota welfare fraud, plans new federal enforcement division

    The Trump administration is now focusing on the Minnesota welfare fraud scandal as part of a broader federal funding review across 14 states, and the Justice Department plans to establish a new division for national fraud enforcement. Additionally, Governor Walz and Attorney General Keith Ellison are expected to testify before the House Oversight Committee on February 10.

  15. DOJ subpoenas Minnesota Governor Walz and officials; Congress hears $9 billion fraud claims

    The Department of Justice issued criminal grand jury subpoenas to at least five top Democratic officials in Minnesota, including Governor Tim Walz, on accusations of obstruction. Separately, a congressional hearing saw Representative Clay Higgins confront Minnesota officials, who reportedly confirmed billions in taxpayer funds vanished due to fraud, with estimates reaching $9 billion.

  16. House Republicans urge IRS to reform non-profit oversight after Minnesota scandal

    House Ways and Means Committee Republicans are urging the IRS to reform non-profit oversight in response to the Minnesota scandal. Additionally, the Minnesota Legislature is set to consider new anti-fraud measures in the upcoming 2026 session, and a convicted fraudster has alleged that Governor Tim Walz and Attorney General Keith Ellison were aware of the widespread fraud.

  17. House Energy & Commerce Committee Investigates Minnesota Medicaid Fraud

    The House Energy & Commerce Committee has launched its own investigation into Medicaid fraud in Minnesota, demanding audits and provider records. Separately, the widespread fraud investigation has led to delays in state Medical Assistance payments for legitimate home care providers.

  18. Chairman Comer Opens Hearing on Minnesota Medicaid Fraud, Citing $9 Billion Stolen

    Chairman Comer addressed fraud in Minnesota's Medicaid program, noting a pause in federal funding, and opened a hearing on fraud in Minnesota's social services, estimating $9 billion stolen. Separately, a surge of federal officers is investigating new allegations of fraud by daycare centers in Minnesota, many operated by Somali residents.

  22. Comer: $9 Billion in Taxpayer Funds Stolen, Calls for Solutions

    The House Committee on Oversight and Government Reform held its first hearing on January 7, 2026, where Chairman Comer stated an estimated $9 billion in taxpayer funds was stolen. Following the hearing, Comer pressed for solutions, and witnesses testified about exploited safeguards and ignored warnings.

  23. Podcast discusses daycare funding fraud, Hatch Act, Iran protests, and thwarted NYE attack

    The podcast discussed daycare funding fraud allegations in Minnesota and how they may impact the entire theory of change of federalism. The hosts also covered new Hatch Act procedures, protests in Iran, a thwarted terrorist attack on NYE, the decrease in financial cr...

  24. Rep. Summer Lee Accuses Republicans of Targeting Democratic State, Immigrants at House Oversight Hearing

    A House Oversight Committee hearing on Minnesota's fraud scandal on January 8, 2026, featured a heated exchange between Chairman James Comer and Rep. Summer Lee. Rep. Lee accused Republicans of targeting a Democratic state and immigrant population.

  26. House Oversight Committee Chairman James Comer initiates hearing on Minnesota social services fraud

    House Oversight Committee Chairman James Comer initiated a hearing on the massive fraud in Minnesota's social services programs, stating that criminals have allegedly stolen at least $9 billion in taxpayer funds. These funds were intended for vulnerable populations, including children, the disabled, and low-income individuals. Minnesota Governor Tim Walz and Attorney General Keith Ellison are scheduled to testify before the committee on March 4, 2026.

  27. House Oversight Chairman James Comer expands investigation into Minnesota social services fraud

    House Oversight Chairman James Comer has opened hearings and expanded an investigation into widespread fraud within Minnesota's social services programs, with federal prosecutors estimating at least $9 billion has been stolen. The fraud involves funds intended for vulnerable populations, including children and individuals with disabilities. A crackdown on this fraud is reportedly impacting disabled Medicaid recipients' access to housing and care.

  28. House Committee Holds Hearing on Federal Funds Fraud in Minnesota

    The House Committee on Oversight and Government Reform held its announced hearing on "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I" on January 7, 2026. Additionally, a letter from April 2025 detailed Minnesota's commitment to combating fraud through data-driven approaches and noted that 56% of new diagnoses for certain services are now related to fraud detection.

  29. Minnesota GOP lawmakers testify on $246 million public assistance fraud

    Three Republican Minnesota state lawmakers, Kristin Robbins, Walter Hudson, and Marion Rarick, testified before the House Oversight Committee on January 7, detailing significant fraud schemes in the state's public assistance programs. They reported that the Department of Justice has indicted 47 people for stealing an estimated $246 million from federal child nutrition programs.

  30. Democratic Lawmaker Warns Against Freezing Child Care Funding Amid Fraud Concerns

    During the House Oversight Committee hearing on January 7, a Democratic lawmaker warned that freezing child care and social service program funding could harm vulnerable families, advocating for stronger oversight instead of cuts. The discussion became heated regarding the fraud in Minnesota's social services programs.

  32. Minnesota Legislative Auditor Releases Report on Failures in Human Services Grant Program

    On January 7, 2026, Minnesota's nonpartisan Office of the Legislative Auditor released a major state audit revealing widespread failures and internal control problems, including fabricated documents and misconduct, within the Department of Human Services' Behavioral Health Administration grant program.

  33. Walz will not seek third term to combat Minnesota social services fraud exceeding $9 billion

    Federal prosecutors now estimate the fraud in Minnesota's social services programs could exceed $9 billion, with 92 people federally charged and 62 convictions. Additionally, Governor Tim Walz announced he will not seek a third term to focus on combating this widespread fraud.

December 2025 — 1 developments

  1. Minnesota DHS designates 14 Medicaid provider types as 'high-risk' and terminates 761 agencies

    The Minnesota Department of Human Services (DHS) has implemented new initiatives to combat Medicaid fraud, including designating 14 Medicaid service provider types as 'high-risk' for increased oversight. In fall 2025, DHS terminated 761 provider agencies and over 96,000 individual providers.

Show earlier developments (14 more)

Chairman Comer announces House Oversight Committee to hold hearing on federal funds misuse in Minnesota

Chairman Comer announces the House Committee on Oversight and Government Reform will hold its first hearing, titled 'Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I,' on January 7, 2026, with Minnesota state officials. Governor Tim Walz and Attorney General Keith Ellison are invited to testify at a second hearing on February 10, 2026.

DHS Secretary Noem and FBI Director Patel deploy federal officers to Minnesota to combat daycare fraud

A surge of federal officers has been deployed to Minnesota to focus on alleged fraud in day care centers operated by Somali residents. Department of Homeland Security Secretary Kristi Noem and FBI Director Kash Patel announced increased operations to dismantle large-scale fraud schemes.

Federal prosecutors charge six more in Minnesota public assistance fraud, total now over 90

Federal prosecutors unveil charges against another six individuals, bringing the total number of people charged in Minnesota's public assistance fraud to over 90. The scope of the alleged fraud expands to include housing assistance and autism services, with total losses potentially reaching billions across 14 Medicaid programs.

House Oversight Chairman Comer Investigates Minnesota Social Services Fraud, Holds First Hearing

House Oversight Chairman James Comer initiated an investigation into widespread fraud within Minnesota's social services programs in December 2025, alleging billions in stolen taxpayer funds. The committee held its first hearing on January 7, 2026, to examine the alleged fraud and misuse of federal funds, featuring testimony from state lawmakers.

Jury finds Feeding Our Future founder Aimee Bock, co-conspirator Salim Said guilty in $250M fraud

A federal jury finds Aimee Bock, founder and executive director of Feeding Our Future, and co-conspirator Salim Said guilty on all counts for their roles in the $250 million pandemic fraud scheme.

Minnesota House Fraud & Agency Oversight Committee holds first hearing on state government fraud.

The newly formed Minnesota House Fraud & Agency Oversight Committee holds its first official hearing to investigate and prevent fraud, waste, and abuse in state government programs.

Minnesota Officials Establish Inspector General Amidst Billions in Social Program Fraud Allegations

Federal prosecutors are investigating potentially billions of dollars in fraudulent claims across Minnesota's social programs, with allegations that state officials ignored warnings about widespread fraud as early as 2019. Governor Tim Walz issued Executive Order 23-21 in October 2023, establishing an independent Office of Inspector General to investigate fraud within Minnesota's social programs. The "Feeding Our Future" case alone is estimated to have cost between $250 million and $350 million.

U.S. Attorney Luger announces charges against 47 in $250M Feeding Our Future fraud

U.S. Attorney Andrew M. Luger announces federal charges against 47 former Feeding Our Future employees and contractors, alleging a $250 million fraud scheme, described as the nation's largest pandemic-related fraud.

Feeding Our Future's federal funds grew from $3.4 million in 2019 to $200 million in 2021

The fraud scheme significantly escalates during the COVID-19 pandemic, exploiting waivers in federal child nutrition programs that allowed for-profit restaurants and off-site food distribution. Feeding Our Future's federal funds disbursed grew from $3.4 million in 2019 to nearly $200 million in 2021.