Minnesota Leaders, Ignoring Billions in Losses From Welfare Fraud, Demand Reimbursement for Those Stemming From DHS Enforcement Surge

Governor Tim Walz of Minnesota and Mayor Jacob Frey of Minneapolis have issued a public demand for federal reimbursement following a recent immigration enforcement surge, despite allegations that thieves allegedly stole $9 billion from taxpayers via fraud in the state’s social services programs.The leaders claim that the federal operations by the Department of Homeland Security placed an undue financial burden on state and city resources. Mr. Walz emphasized the need for federal accountability regarding the costs incurred by Minnesota residents.“The federal government needs to pay for what they broke here. There [is] going to be accountability on the things that happened, but one of the things is the incredible and immense costs that were borne by the people of this state,” Mr. Walz said. He added that he intends to ask Minnesota’s congressional delegation to assist in the reimbursement claims, saying, “The federal government needs to be responsible. You don’t get to break things and then just leave without doing something about it.”Mr. Frey echoed his sentiments, estimating the economic impact on his city exceeds $200 million. The figure includes an estimated $47 million in lost wages for residents “afraid to leave home” for work, $81 million in lost revenue for small businesses, and $4.7 million in hotel cancellations, he said.“I’m not naive to think that we’re going to get the entire amount,” Mr. Frey told Minnesota Public Radio, noting that some 76,000 residents require some form of relief.The request for funds has been met with skepticism from federal officials. The White House border tsar, Tom Homan, addressed the issue Sunday on Fox News, pushing back against the notion that the current administration is to blame.“A lot of things were broken, but it wasn’t because of the Trump administration,” Mr. Homan said.Neither Mr. Frey nor Mr. Walz, however, mentioned the widespread fraud that has been uncovered in the state in recent months, which, by some accounts, could top $9 billion, according to First Assistant U.S. Attorney Joe Thompson.Mr. Walz’s administration remains under national scrutiny for the alleged fraud, with a large portion reportedly tied to members of the state’s significant Somali immigrant community.One sprawling fraud investigation exposed a staggering misuse of Covid-era funds, centering on a $250 million scheme that now implicates upwards of 75 defendants.At the heart of the allegations is a nonprofit group known as Feeding Our Future. Prosecutors say the organization claimed to partner with restaurants and caterers to distribute meals to schools and extracurricular programs. Instead, authorities allege the group submitted fake meal count sheets and invoices, collecting millions in administrative fees while receiving kickbacks from the individuals running their meal distribution sites.Other schemes involved falsely claiming children had autism to obtain benefits and enrolling individuals in food assistance programs who were never eligible or enrolled.The inquiry has also broadened to include allegations of fraud within daycares in Minneapolis. Investigators are focusing on more than a dozen other social services programs in Minnesota, including those dedicated to nutrition, housing, and behavioral health.The total cost of the fraud could still go much higher. In a recent hearing with Senator Ted Cruz of Texas, Minnesota journalist David Hoch testified regarding the scale of the alleged misuse of taxpayer funds, suggesting the total cost could be “easily in excess of $30 billion when you take everything into account.”Mr. Walz has since announced that he will not seek a third term in office.

Minnesota Leaders, Ignoring Billions in Losses From Welfare Fraud, Demand Reimbursement for Those Stemming From DHS Enforcement Surge

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