Minnesota social services fraud investigation

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.

via Fox 9

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.

via House Committee on Oversight and Government Reform·oversight.house.gov

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.

via cbsnews.com

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.

via oversight.house.gov·youtube.com

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.

via mprnews.org·oversight.house.gov

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.

via minnesotareformer.com

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.

via startribune.com

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.

via U.S. House Committee on Oversight and Government Reform·YouTube·U.S. House Committee on Oversight and Government Reform

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.

via Star Tribune·Kare11·cbsnews.com

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.

via Kare11·House Oversight Committee·CBS News Minnesota

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.

via Star Tribune·youtube.com

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.

via Star Tribune

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.

via News from the States·oversight.house.gov·en.wikipedia.org

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.

via irishrover.ie

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.

via cbsnews.com

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.

via kare11.com·startribune.com

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.

via foxnews.com·kare11.com

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.

via cbsnews.com

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.

via EIN Presswire·AP News·Star Tribune

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.

via oversight.house.gov

The Minnesota Department of Children, Youth, and Families (DCYF) is currently investigating 158 providers receiving state child care program funding, a significant increase from 55 previous investigations. This expands the scope of the ongoing fraud scandal.

via cbsnews.com

A KARE 11 investigation revealed that disabled Minnesotans are being abandoned without care and housing due to the Medicaid fraud crisis, with caregivers from Ultimate Home Health Services allegedly leaving clients without essential services and unpaid rent.

via kare11.com

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.

via washingtonmonthly.com·tax.thomsonreuters.com

The IRS Criminal Investigation (IRS-CI) division has prioritized the Feeding Our Future fraud scheme in its 2025 enforcement list, recognizing it as one of the largest fraud cases in U.S. history involving federal pandemic programs.

via fcfreepresspa.com

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.

via washingtonmonthly.com

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.

via city-journal.org

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.

via foxnews.com

President Trump has made multiple xenophobic comments about Somali immigrants following the findings of an investigation into social services fraud in Minnesota.

via crooked.com

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."

via jdsupra.com·einpresswire.com

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.

via mprnews.org

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.

via keyt.com

A congressional hearing was held on January 21, where YouTuber Nick Shirley and former state investigator Scott Dexter testified about the Minnesota fraud scandal and deficiencies in the system.

via youtube.com

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.

via inkl.com·youtube.com·youtube.com

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.

via waysandmeans.house.gov·cbsnews.com·foxnews.com

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.

via energycommerce.house.gov·startribune.com·vertexaisearch.cloud.google.com

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.

via jdsupra.com·apnews.com·quiverquant.com

House Republicans are suggesting that the ongoing fraud investigation in Minnesota's social welfare programs could be just the beginning. They are calling for probes to expand into other states, specifically mentioning New York, California, and Illinois.

via foxnews.com

A House Oversight and Government Reform Committee hearing on massive federal fraud, including in Minnesota's social services, was held on January 15, 2026, where Republican lawmakers raised concerns over billions lost due to oversight failures.

via youtube.com

U.S. Treasury Secretary Scott Bessent announced new initiatives to combat government benefits fraud in Minnesota, specifically targeting Somali fraud in Minneapolis, by issuing notices of investigation to money services businesses.

via vertexaisearch.cloud.google.com

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.

via oversight.house.gov·oversight.house.gov

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...

via podcasts.apple.com

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.

via youtube.com

Chairman Comer discussed the Minnesota fraud hearing on Fox News on January 8, 2026, following a longer hearing on January 7, 2026, titled 'Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I'.

via congress.gov

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.

via United States House Committee on Oversight and Government Reform·CBS News·APT

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.

via oversight.house.gov·cbsnews.com·oversight.house.gov

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.

via fedscoop.com·oversight.house.gov·house.mn.gov

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.

via youtube.com

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.

via youtube.com

During the House Oversight Committee hearing, Minnesota state lawmakers testified about multi-million dollar fraud schemes and alleged that officials resisted efforts to address systemic financial impropriety.

via cbsnews.com

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.

via foxnews.com

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.

via cbsnews.com·mprnews.org

Minnesota Governor Tim Walz announced he is dropping his re-election campaign amid intense scrutiny over his administration's handling of the social services fraud crisis.

via cbsnews.com

Renewed attention on the 'Feeding Our Future' COVID fraud case highlighted Amy Bach, a central figure, being listed as a contact for nearly 50 taxpayer-funded childcare centers.

via youtube.com