Minnesota massive fraud schemes: What We Know So Far

Advanced | January 14, 2026

✨ 혼자서 기사를 소리 내어 읽거나 튜터를 따라 각 단락을 반복해서 읽으세요. 레벨...

A Scandal That Suddenly Went National

Why this blew up now

The Minnesota massive fraud schemes story has been bubbling for years—but it exploded into the national spotlight after a viral video by YouTuber Nick Shirley got amplified by Elon Musk, Vice President J.D. Vance, and Attorney General Pam Bondi. Not long after, federal officials said the scandal could be enormous: prosecutors have estimated the total could top $9 billion—a number Minnesota Governor Tim Walz disputes. Walz also announced he’s dropping his reelection campaign, as pressure and headlines piled up. (CBS News)

The “Money Spigot” Moment: Child Care Funds Frozen

Why this matters beyond politics

One reason this story keeps spreading is that it’s now affecting real families, not just courtrooms. On Dec. 31, 2025, the U.S. Department of Health and Human Services (HHS) said it froze federal child care funding for Minnesota after the viral allegations—then announced tougher paperwork rules for everyone.

What HHS says will change

According to CBS News, Deputy HHS Secretary Jim O’Neill said the agency “turned off the money spigot,” and the Administration for Children and Families said Minnesota receives about $185 million per year in child care funds. O’Neill also said payments nationwide would require justification plus a receipt or photo evidence before money is sent. (CBS News)

Scheme #1: Feeding Our Future and “Luxury-Item Spending”

The scale of the case

The biggest and most famous case is the Feeding Our Future scandal, where federal prosecutors say defendants stole nearly $250 million from a federally backed child nutrition program during the pandemic. CBS News reports that 92 people have been charged so far, with 62 convicted—and more cases still moving through the system. (CBS News; House Oversight Committee)

Where prosecutors say the money went

A former U.S. Attorney, Andy Luger, told CBS News that investigators found no evidence the stolen money directly funded terrorism—and that most of it went toward luxury items. CBS News also obtained trial exhibits showing examples like a 2021 Porsche Macan, travel to places like the Maldives, and wire transfers overseas (including to China and nearly $3 million to Kenya). (CBS News; CBS News exhibits story)

Scheme #2: Housing Stabilization Services—A Program Built With “Low Barriers”

Why investigators say it was easy to exploit

Fraud wasn’t limited to one program. The U.S. Department of Justice says Minnesota’s Housing Stabilization Services (HSS) benefit had low barriers to entry and minimal records requirements, which made it vulnerable.

The cost curve that raised alarms

DOJ also says DHS originally predicted the program would cost about $2.6 million per year, but actual payouts climbed fast: $21 million (2021), $42 million (2022), $74 million (2023), $104 million (2024), and another $61 million in the first six months of 2025. (DOJ)

What Minnesota DHS did next

Minnesota DHS later moved to terminate the HSS program due to “large-scale fraud,” and DHS says the program ended Oct. 31, 2025. (Minnesota DHS)

Scheme #3: Autism Services—Kickbacks, Unqualified Staff, and Millions in Claims

What the DOJ alleges

The DOJ also describes an alleged autism services scheme involving the state’s Early Intensive Developmental and Behavioral Intervention (EIDBI) benefit for people under 21 with autism. In one case, DOJ says Star Autism Center LLC billed Medicaid for services that were not actually provided, used unqualified “behavioral technicians,” and financed alleged kickback payments to parents through fraudulent billings.

The money trail in this case

In its Dec. 18, 2025 press release, DOJ says the alleged scheme brought in more than $6 million in reimbursement funds—and describes examples of how proceeds were used, including more than $100,000 toward a semi-truck and more than $200,000 sent to Kenya. (DOJ)

The Political Fight—and What the Minnesota massive fraud schemes Reveal

How the story is being framed

Like it or not, fraud stories get weaponized. CBS News reports that President Trump and some Republicans have focused heavily on Minnesota’s Somali community, since many—but not all—defendants are of Somali descent. That framing has drawn strong pushback from local officials, while federal and state investigators say they’re focusing on multiple programs beyond child care, including nutrition, housing, and behavioral health. (CBS News)

What Congress is doing

Meanwhile, House Oversight Chair James Comer launched an investigation in December 2025, asking Gov. Walz and Minnesota AG Keith Ellison for documents related to fraud and oversight failures. (House Oversight Committee)

The practical lesson

The big takeaway for English learners (and for taxpayers): the Minnesota massive fraud schemes show that when controls are weak, fraud scales fast. And once the headlines hit, the response often swings hard in the other direction—new rules, audits, freezes, and a lot of finger-pointing.

Vocabulary

Scheme (noun) – an organized plan, often secret or dishonest.
Example: “Investigators described the fraud as a coordinated scheme across several programs.”
Audit (noun) – an official review of records and accounts.
Example: “HHS demanded a comprehensive audit of the centers named in the viral video.”
Compliance check (noun) – an inspection to confirm rules are being followed.
Example: “State investigators did compliance checks and said several centers were operating as expected.”
Reimbursement (noun) – money paid back for an approved expense or service.
Example: “The provider submitted claims for Medicaid reimbursement.”
Kickback (noun) – money paid secretly in exchange for a favor or participation.
Example: “DOJ says some parents received kickbacks connected to autism-service billing.”
Vulnerable (adjective) – easy to harm, exploit, or take advantage of.
Example: “Minimal documentation made the program vulnerable to fraud.”
Wire transfer (noun) – sending money electronically from one bank to another.
Example: “Court exhibits showed wire transfers overseas.”
Oversight (noun) – supervision and accountability.
Example: “Lawmakers criticized weak oversight of public assistance programs.”
Red flag (noun) – a warning sign that something might be wrong.
Example: “Rapidly rising payouts were a red flag for investigators.”
Whistleblower (noun) – a person who reports wrongdoing inside an organization.
Example: “Some officials say whistleblowers tried to warn the state early.”

Discussion Questions (About the Article)

Why did this Minnesota fraud story suddenly go national in late 2025 and early 2026?
What are the biggest differences between the Feeding Our Future case and the HSS case?
Why might “low barriers” and “minimal records” make a public program risky?
How do you think the HHS funding freeze affects families who need child care help?
What should happen when fraud is found—tighten rules, shut the program down, or redesign it?

Discussion Questions (About the Topic)

What are smart ways to prevent fraud without making help too hard to access?
Should states and the federal government share more real-time data to catch fraud faster?
When public money is involved, what level of paperwork is “reasonable”?
How can media coverage help uncover fraud—and how can it distort a story?
What incentives (good or bad) do you see in large public assistance systems?

Related Idiom

“Follow the money” – track where the money goes to understand what really happened.

Example: “To understand the Minnesota fraud cases, investigators had to follow the money—from claims to luxury purchases to overseas transfers.”

📢 Want more learner-friendly news like this? 👉 Sign up for the All About English Mastery Newsletter! Click here

Want to finally master English but don’t have the time? Mastering English for Busy Professionals is built for you.

Follow our YouTube Channel @All_About_English for more tips.

This article was inspired by: CBS News (and supported with public records and statements from DOJ, Minnesota DHS, and the U.S. House Oversight Committee).