Billions Stolen from Federal Programs in Minnesota
Update: 2025-12-18
Description
Federal prosecutors in Minnesota allege that over half of the eighteen billion dollars in federal funds allocated to state-run programs since 2018 may have been stolen, potentially jeopardizing vital services for vulnerable populations. The massive fraud involves companies created solely to submit false claims to Medicaid, with zero services provided and federal money used for luxury items and international travel. New charges were filed this week against individuals involved in these schemes, including a defendant accused of recruiting children for an autism clinic and paying kickbacks to parents, submitting six million dollars in fraudulent claims. Governor Tim Walz has initiated a third-party audit and paused payments for ninety days, while former President Donald Trump has used the cases to criticize the state and target the Somali diaspora in Minnesota.
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