When immediate financial aid programs were needed during the pandemic, there was always going to be a trade-off between getting the money out there and preventing fraud. Many programs, including the federal PPP and this state program, made the trade-off in favor of getting the money out there. Hence the fraud. Every program that could have been defrauded was defrauded in very short order. It was foreseen but some folks underestimated people's ability to say "fuck everyone else, I'm grabbing everything I can". Answer from Dazzling_Outcome_436 on reddit.com
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Reddit
reddit.com › r/minnesota › best overview of the fraud situation i've seen yet
r/minnesota on Reddit: Best overview of the fraud situation I've seen yet
2 days ago -

If you're not familiar with Leeja's channel, I highly recommend it. I've been watching her for years and really appreciate her (well-researched) deep dives into topics related to politics, government, and law.

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Reddit
reddit.com › r/askpolitics › what’s going on with the fraud in minnesota?
r/Askpolitics on Reddit: What’s going on with the fraud in Minnesota?
3 days ago -

I’ve been seeing this in the news lately, but I remain unsure if these are isolated incidents or something more systemic. This Feeding Our Future case seems to be pretty big, with what appears to be at least $250 million in fraud. Reporting describes it as one of the largest pandemic related fraud cases in the country. https://www.cbsnews.com/news/what-to-know-about-minnesota-fraud-allegations-as-trump-levels-attacks-on-walz/

Federal prosecutors are also pursuing multiple additional fraud investigations in Minnesota involving Medicaid and other social services programs, including autism services and housing stabilization services and daycare. Federal officials have described the scope of the problem as unusually large. https://minnesotareformer.com/2025/12/18/u-s-attorney-fraud-likely-exceeds-9-billion-in-minnesota-run-medicaid-services/ MPR News reporting on new charges: https://www.mprnews.org/story/2025/12/18/minnesota-fraud-new-charges-medicaid-scam https://kstp.com/tracking-your-tax-dollars/whistleblower-minnesotas-child-care-assistance-program-has-fraud-cases-dating-back-12-years/ https://m.economictimes.com/us/news/empty-daycare-centers-millions-in-public-funds-viral-video-sparks-minnesota-fraud-scrutiny/articleshow/126213876.cms

For people who follow Minnesota politics or public administration more closely: how should all of this be understood? Are these just unusually large fraud cases that happen to be concentrated in one state, or do they point to broader systemic issues? How does this compare to fraud in other states? And what should change to prevent similar problems going forward?

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Reddit
reddit.com › r/trueunpopularopinion › minnesota is one giant sinkhole of fraud
r/TrueUnpopularOpinion on Reddit: Minnesota is one giant sinkhole of fraud
5 days ago -

What tf is going on in Minnesota? Industrial-scale fraud is occurring in this state, and no one on Reddit seems to be paying attention. Every aspect of Minnesota's social services is being shamelessly pillaged. Feeding our Futures scandal, at least 250 million, probably 10x that number when all stones are unturned, 878 arrested so far. Housing Stabilization Services Fraud, at least 300 million pilfered, 5 arrested so far. Autism Services (EIDBI Program) Fraud, Broader Medicaid and Social Services Fraud, and now the latest child care services fraud, where millions of dollars were sent to empty storefronts posing as child care facilities. This is gross criminal negligence on the part of Minnesota's leadership. People seriously need to be imprisoned.

And by the way, the same level of corruption and scandal is being uncovered in California now. Seems to be a certain pattern forming.

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Reddit
reddit.com › r/askaliberal › why isn't the left losing their minds over $9b+ stolen from minnesota social programs
r/AskALiberal on Reddit: Why isn't the left losing their minds over $9B+ stolen from Minnesota social programs
5 days ago -

I'm trying to understand the liberal perspective on this without any gotchas...

The Minnesota fraud scandals have been huge news lately: federal prosecutors estimate potentially $9B+ stolen from 14 state-run programs since 2018 (half or more of the $18B disbursed), including child nutrition (Feeding Our Future), child care assistance (CCAP with "ghost" centers), autism services, and housing programs. Dozens of centers billed for non-existent services, with funds allegedly going to luxury cars, homes, overseas properties, etc.Examples that stand out: "Quality Learing Center" (sign misspells "learning", are you kidding) in Minneapolis: millions in subsidies despite 95+ violations, empty during visits, blacked-out. Fruad. actual, measureable, fruad.

Nationally, improper payments/fraud in federal programs hit $162B in FY2024, with child care and welfare vulnerabilities in states like Illinois, California, etc.—not just Minnesota.

Critics (across parties) blame weak oversight, self-reporting loopholes, and pandemic waivers. Gov. Walz has implemented fixes (e.g., fraud unit, payment stops), and there's bipartisan pushback now.

But why doesn't this level of direct taxpayer theft (billions vanishing while programs meant for vulnerable kids/families get exploited) spark the same intense outrage/protests on the left as, say, corporate subsidies, billionaire loopholes, or environmental issues?

Is it seen as isolated/systemic but fixable without slashing programs?

Or more a failure of administration than the programs themselves?

Do liberals view this as worth aggressive reforms (tighter verification, cuts to risky providers) to protect social safety nets? Or is the bigger priority preserving access for those who need it, even with some waste?Thanks for thoughtful responses!

Update: I also just read that after this dude was found guilty, the judge overturned the results. Come on?!?

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Reddit
reddit.com › r/minnesota › whistleblower: minnesota’s child care assistance program has fraud cases dating back 12 years
r/minnesota on Reddit: Whistleblower: Minnesota’s Child Care Assistance Program has fraud cases dating back 12 years
2 days ago -

Nick Shirley is a dishonest right-wing hack so he's not a credible source, but here's a news story from KSTP on the exact same thing with much more credible backing.

(There's a video too but the sub doesn't allow just YouTube videos as links, but here is the full article which includes it if interested.)

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Reddit
reddit.com › r/twincities › is the fraud really that bad? is it really tim walz fault?
r/TwinCities on Reddit: Is the fraud really that bad? Is it really Tim Walz fault?
5 days ago -

I absolutely loathe the idea of fraud in the sense of taking money meant for hungry kids or programs that were taking advantage of by people who were using it to just try and get rich.

I see all this stuff about how it was Walz fault and they are blaming him.

I truly think Walz is the best modern politician, probably the best in the country, and I find it hard to believe he knowingly allow fraud to happen or got any kickbacks from it or anything like people say.

Can someone give me a rundown of the fraud and if Walz was involved at all other than signing the bill that authorized funds? Thanks.

Find elsewhere
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Reddit
reddit.com › r/minnesota › fraud in minnesota: new charges filed related to various state programs (fox 9)
r/minnesota on Reddit: Fraud in Minnesota: New charges filed related to various state programs (Fox 9)
2 weeks ago - Ilhan Omar over remarks about Charlie Kirk ... "Fraud tourists" traveled to Minnesota after a friend told them state programs were "a good opportunity to make money," prosecutors say
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Reddit
reddit.com › r/centrist › minnesota fraud-
r/centrist on Reddit: Minnesota fraud-
14 hours ago -

I’m trying to sort through the noise regarding child care and other fraud in Minnesota.

Unfortunately I’ve had trouble finding facts. Most of what I read is either political spin, or generic stories with glossed-over data.

Is there any **evidence** that Gov Walz did anything illegal? Not spin, but evidence or even legit reasonable cause to suspect? (Or was he slow to act, or slow to publicize state actions, perhaps to protect political allies?)

If the scale of fraud is $1-6b, what proportion is that of the State’s overall programs? In other words, how big is it really? Fox News and the R candidate for governor makes it seem like the entire state is a fraud. While Walz’s press releases lean towards “it’s just a few rotten apples”.

Anyone know the facts?

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Here's a state audit report (PDF) from 2019 that gives some decent background on the situation and what was being done at a state level before covid. Here's some local journalism about fraud - and subsequent investigations/convictions - behind Feeding Our Future, a pandemic-response program. Feeding Our Future is separate, but likely related, to alleged child care and midicare fraud in the area. Note, earlier this year, Minnesota republicans blocked a fraud prevention oversight proposal due to cost concerns. As far as I can tell (and I'm a rando with no intimate knowledge of the situation): There has absolutely been fraud in MN Some of that fraud predates covid, but much of it was exacerbated during covid when more programs were offered, and oversight of these new programs was strained due to personnel and logistical constraints MN gov has taken actions to address this fraud. Dozens of people have been convicted, but much of that is from Feeding Our Futures. It seems to me like fraud in pandemic programs is being litigated, but it's ongoing. Many of those involved in these fraud schemes are Somalian, though the "mastermind", who has been convicted, is a white woman. There are claims from some state officials that Walz et al were reluctant to be aggressive against much of this fraud due to the racial element and Minnesota's recent history with George Floyd (see the NYT article ). It doesn't appear that Walz has done anything illegal, and I don't think anyone has really claimed that In my opinion there is a real fraud problem, that has been known for a while and has been investigated at the state level, but limited state resources - possibly combined with some hesitance due to the racial element - means the issue is ongoing. Simultaneously, the administration is trying to turn this known issue into a bombshell expose to attack a democratic state legislature and an immigrant population simultaneously. As a result a lot of innocent children and families will now suffer until the courts likely step in.
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The prosecutors claim that since 2018 there have been 14 Minnesota run assistance programs that have stolen $9 billion+ of the $18 billion in federal funds they have received. That would mean potentially over half of all funds these programs received, which if accurate would be considered rampant abuse. This predates Trump2 and the recent social media child care video by years. The Biden administration prosecuted approximately 78 people in Minnesota in connection with fraud of assistance programs from 2021 to the end of his term. The Walz connection is that he has been governor and thus overseeing these state boards this entire time, there is no evidence that he is part of the criminal activity at this moment. The Small business administration is concerned the fraud is wide enough that they have stopped offering loans to Minnesota child cares as of a few days ago. The Trump administration has now frozen payments to childcare programs in the state as well.
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Reddit
reddit.com › r/stupidpol › minnesota fraud
r/stupidpol on Reddit: Minnesota Fraud
3 days ago -

Basically a total reddit blackout on this topic, there’s gotta be some middle ground discussion here. Is it Russian disinformation or is that just reddit cope?

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I created invoices for Medicaid transportation 5+ years ago in NY and not surprised by the fraud. At least some of the fraudsters were caught when I was still working there. Though I have a gut feeling that half of em are still going. Shit’s fucked. People who think most of the fraud is from the individual level abusing the system are mistaken, it’s usually companies giving fake services/upcharging.
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It’s going to be one of those things where being mad about it is right-coded so folks will be doing all sorts of mental gymnastics to try and convince people (themselves?) that the daycare with the blacked out windows with no kids that won’t give you an enrollment application is totally legit because it needs to be or else the right-oids would be on the correct side of something and that can’t be right. What I don’t understand though is why these businesses are getting millions in tax funds to begin with. Like, I get the Covid era payroll loans that we needed to do to keep things afloat for like a year and I accept that there was some grift there. And I understand medicare fraud where you bill the government for stuff you didn’t do or patients that didn’t exist. But I don’t understand what the daycare game is, does the state just pay the tuition for kids and the scam is to fabricate a bunch of fake kids to bill for? At that point they need to just make daycares be like the public school model and have the state run the whole thing end-to-end as a public school of sorts, as long as the government is paying for it anyway; why does the taxpayer need to foot the bill for these places profit margins, even without the rampant corruption