With evidence emerging of more than $9 billion worth of taxpayer fraud in Minnesota, the media are finally starting to cover the problem of criminals stealing from the taxpayer. But fraud is by no means limited to Minnesota—it is a nationwide problem that leaders at both the federal and state levels need to tackle before it gets even worse.
Even the New York Times was forced to take notice, publishing an explosive article showing evidence of more than $1 billion of taxpayer money stolen by about 80 different Somali immigrants to Minnesota. Just days after the Minnesota story broke, a Somali immigrant in Maine was accused by a whistleblower of defrauding both Medicaid and the pandemic-era Paycheck Protection Program. The alleged fraudster in the case, while ostensibly working in Maine, ran for office in Somalia and boasted of raising money for the Somali military. According to the whistleblower, his non-profit organization had, for years, sought reimbursement from the federal government for non-existent “services” under Medicaid.
Now, federal prosecutors in Massachusetts announced charges against two Boston men for trafficking more than $7 million worth of food stamps, and a local news station in Oregon uncovered more than $91,000 in food stamp fraud in Oregon just in the month of November alone.
This dizzying list of fraud cases just keeps getting longer.
For years, conservatives have been sounding the alarm about the problem of fraud, but too often those warnings fell on deaf ears. Finally, it seems like the sheer scale of the fraud has shocked the media and their viewers alike: The fraudsters in these cases have stolen more than 10 times as many tax dollars than the entire Somali community in Minnesota pays in taxes each year.
Much of the reporting has focused on the missteps of Minnesota Governor Tim Walz, who backed down on any attempts to stop the fraud out of fear of being labeled a racist. This scandal is career-ending for Governor Walz, but the story is much bigger than him or Minnesota.
The fraud in these sensational news stories is just the tip of the iceberg.
The non-partisan Government Accountability Office (GAO) has documented nearly $3 trillion in known waste, fraud, and abuse in the federal government over the last 22 years. This number is just the waste, fraud, and abuse that we know about—and it does not even include all federal programs. According to GAO, more than 10 cents out of every food stamp dollar is wasted or stolen.
The good news is that President Trump is fighting back against the fraudsters. Not only is the Department of Justice arresting them and putting them in jail, but President Trump signed new policies into law that will make it a lot more difficult to steal from the taxpayer. Instead of checking eligibility annually, states will be required to double-check the eligibility of Medicaid recipients every six months.
President Trump’s new law will also kick millions of illegal immigrants off welfare, reserving welfare resources to help Americans who need it the most. The new law will even penalize states who fail to protect taxpayer dollars, requiring the worst offenders to pay back a percentage of their own erroneous payments.
But there is a lot more to do. Many states, including Minnesota, Maine, and Massachusetts, are using budget gimmicks to hide the real rate of fraud from the federal government. The most salient is called Broad-Based Categorical Eligibility, which is when states don’t bother to check if someone is eligible for one welfare program if they’re already receiving another kind of welfare. This just multiplies fraud where it occurs and gives the false impression to the federal government—and to voters—that fraud is less common than it really is. Every state in America needs to stop using this blatant loophole, do their jobs, and check to ensure that people receiving our tax dollars are actually eligible.
This holiday season’s string of fraud cases is infuriating to hardworking Americans who pay their taxes and follow the rules. But after decades of waste and fraud of our tax dollars, they ought to be the trigger that finally leads to the real reforms we need.
Adam Gibbs is the Communications Director for the Foundation for Government Accountability.
Reprinted with Permission from The Foundation for Government Accountability – By Adam Gibbs
The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.
Fraud is bad enough. Now the governor Tim Walz is threatening to deploy the Minnesota National Guard to thwart ICE. That, by definition, is a real insurrection, and yet this bonehead has the audacity to refer to January 6th as an insurrection.
As a side note, if Socialism is so great, why do all the Leftists who are protesting or threatening to leave the USA, never move to a Socialist country?
If Nicolás Maduro was such a decent Socialist guy, why did a quarter of Venezuela’s population, 8 million people, flee to other countries?
Now we have Zohran MadCommie and his radical appointees, threatening to “impoverish the white middle class” and seize private property.
If Sharia Law is so great, why don’t these folks move to the Islamic country of their choice and practice it to their heart’s content?
(I hear Somalia is nice this time of year)
The vast majority of Americans reject the far Left’s agenda and their asinine policies, just want to work, provide for their families in peace, not have their wealth stolen by confiscatory taxes for nefarious purposes, and be left the hell alone.
Lastly, when are these crooks, like Tim Walz and Ilhan Omar, going to be held accountable?
(My guess is the 12th of Never) – I’m not holding my breath.
As all of this fraud around the nation comes into the light, how many government officials at all levels will be prosecuted for their crimes of allowing this to happen? Most of the wasted taxpayer money are in foreign bank accounts that can’t be touched or returned. Proper justice will not be doled out; most will receive a slap on the wrist. What a shame of how the justice system is now political instead of equal fairness for all.
The second Trump administration is more than I hoped for. I knew he would clean up fraud from Biden and Obama, but he is reaching way back.
Eliminate all this fraud. Get the government out of charity. Let the churches and citizens groups handle it.
Possible Fraud Day Care Centers are also being flagged in Southern California. Calls are going out for more citizen journalists to investigate and report on this fraud.
The worst offenders should have to pay back ALL the money they stole, not just “a percentage of it,” then they should have to pay for their flights to their home country.
Probe all Blue States then
This is a real mess! No wonder our national deficit is so high. Checking eligibility more often will help only if those checking are trustworthy.
All Democrat run States must be investigated immediately and if fraud and corruption are found hold all in Power accountable! Enough of these Leftist Democrats and their supporters!
hello,,,, the STATES dish out fed. taxpayers funds and NOBODY cares,could this be DEM, buracracy ????
This really isn’t news to any taxpayer. We have ALL heard the stories about fraud and corruption. It’s about time we get some serious justice. And a tax break!
Not one bit surprised-stealing from hard working taxpayers is a profession in mostly Democrat jurisdictions!
I noticed you left out SSI and disability fraud, which honestly is where most of the fraud cones from. Too many lazy old coots sitting at home with their grubby, entitled paws out demanding more and more money when they should, in fact, be working.
An investigation is long overdue and the sooner the better.
Democrats are at the head of all of it.
imo
I can’t wait until all the fraud and corruption is exposed in Kalifornia, New York, Illinois, Michigan, Oregon, etc!
Ignoring fraud can no longer be tolerated. The differences between the economies of Obama’s administration, Trump’s first administration and Biden’s administration are fresh in the American mind. Most of us know we can not continue to support the hemorrhaging of our funds.
BTW, where does Congressional oversight stand on this?
Not all Social Security recipients are scamming the system. I paid in from 13 years of age until 72 years of age including military time with combat time. Yes, I have military too. Wife paid in from 16 to 69 mostly as a nurse and SSEC is her only retirement.
See plenty of welfare and disability of fraud in own community. I have made online reports to Inspectors General without any follow-through I could determine. Offered PDF documents from Court of Probate records and photos to document my reports. Nothing.
Widespread SSI Disability fraud happening under noses of Social Security Admin that apparently aren’t on speaking terms with IRS and state Depts of Revenue. For example, there are income tax liens against the free house given to people living nearby who often work ‘under the table’ while receiving SSI Disability, SNAP, Medicaid, as well as handouts from local charities.
Infuriating when doing online searches and only responses are that welfare fraud is a fraction of 1% of all welfare benefits when you watch it happening every day in your own community.
If we could recover all the money back from all the fraud in our country then we could esily pay off ALL the National Debt!
Whose been arrested? Where? How many? All this talk but we are not seeing consequences No handcuffs, no big names. No convictions. Heads should be rolling everywhere.
Please do some homework. Elon Musk paid $11 BILLION dollars in taxes (Est.) in 2022. He generally doesn’t pay much in taxes because he gets stock options from his various companies and won’t owe anything until they’re sold.
I see most of the fraud is school spending of federal dollars