News-News.Zip

News in English (USA) / 11.12.2025 / 16:00

Massive Fraud Scandal Unfolds in Minnesota, Prompting State and Federal Investigations

Minnesota is grappling with a staggering fraud scandal that has reportedly siphoned nearly $1 billion meant for vulnerable populations, particularly in the Somali community. Lawmakers, including Republicans, are calling for a thorough crackdown and accountability, criticizing Governor Walz for allowing the situation to escalate unchecked. Investigations reveal that fraudsters misused funds from programs designed to support low-income families and children, leading to extravagant purchases of luxury cars and real estate worth over $250 million. Federal authorities are now threatening to cut Medicaid funding if the state fails to address the widespread corruption, while the Department of Justice launches inquiries into the situation. The scandal has sparked debates over oversight, transparency, and the potential impact on state welfare programs, raising concerns of systemic vulnerabilities within grant oversight practices.
CBS News, Fox News, Star Tribune, MinnPost, Yahoo, FOX 9 Minneapolis-St. Paul, WRAL, The Wall Street Journal, Hoover Institution, kare11.com