Minnesota’s fraud problem
Every week, there is another headline about fraud in Minnesota. From the Feeding Our Future scandal to ongoing problems in childcare and health care programs, taxpayers keep learning that millions meant to help Minnesotans are being wasted or stolen.
Minnesotans are generous people. We want to help families who need support. But when the state fails to oversee these programs, that generosity gets abused. Every dollar lost to fraud is a dollar that does not help a child, a senior, or a person with disabilities.
Fraud should not be a partisan issue. Unfortunately, in Minnesota, it has been treated that way.
The latest example came on Dec. 26. Independent journalist Nick Shirley released a video showing what appears to be fraudulent child care centers in Minneapolis. The video has been viewed more than 120 million times. It shows locations receiving millions through the Child Care Assistance Program while appearing closed during the workday. No children. No staff. No services.
As Senate Republicans, we took this seriously. We signed a letter demanding immediate answers from state commissioners. We asked for a full accounting of child care site visits going back to 2021 and a public explanation for how this could go undetected for years.
This is especially troubling because lawmakers already acted on CCAP fraud once before. Reforms were passed after problems were exposed in 2018. Those reforms clearly failed to stop abuse.
Child care fraud is only part of the problem. Earlier this month, the U.S. Attorney’s Office announced new fraud charges involving Minnesota’s Medicaid waiver programs. Federal prosecutors said individuals traveled here after learning how easy it was to defraud the state. In another case, money meant for autism treatment was allegedly used for personal purchases.
Federal officials estimate that as much as half of the $18 billion paid through Minnesota Medicaid programs since 2018 may involve fraud. Reviews are also underway for SNAP benefits, student loans issued to ghost students, and unemployment insurance.
All of this shows Minnesota has become an easy target for fraudsters.
What makes this worse is that Democrats and Gov. Tim Walz controlled state government for three years. They knew about Minnesota’s fraud problem. During that trifecta, they failed to take meaningful action to strengthen fraud oversight. When government was divided last session, Republicans offered commonsense proposals to stop waste, fraud, and abuse. However, Walz and Democrats blocked them.
Additionally, Department of Human Services (DHS) whistleblowers raised early warnings, but they faced threats and retaliation instead of action. Records were allegedly deleted, and fraud alerts ignored. Walz and his agency leaders failed to stop the abuse. Turning a blind eye to known fraud is a serious violation in itself.
Senate Republicans have been consistent. We pushed for stronger audits and real enforcement. We also called for an independent Office of Inspector General to catch fraud earlier, hold agencies accountable, and make sure taxpayer dollars go where they are supposed to. Over the years, we have introduced multiple measures to protect taxpayer dollars, including proposals under our ‘Minnesotans First’ agenda to strengthen oversight and ensure agencies follow through on anti-fraud measures.
As we look to the next legislative session, Senate Republicans are once again ready to act. We will bring forward meaningful solutions to stop fraud and protect taxpayer dollars. We welcome Walz and Democrats to join us.
Minnesota cannot afford more inaction.
— Gary Dahms (District 15) and Bill Weber (District 21) serve in the Minnesota Senate
