As almost every major news outlet has now covered, over the course of years, fraudsters bilked millions from multiple state and federal welfare programs in Minnesota. These programs, modeled after Scandinavian safety net systems and championed by Governor Tim Walz, were designed to provide broad support for food, housing, and other social services. But because the eligibility requirements and oversight mechanisms were unusually low compared to other states, the system became vulnerable to massive abuse.
That vulnerability proved costly—and it likely would have stayed hidden if not for the Center of the American Experiment. The scandal came to light because of their years of investigation, led by Policy Fellow Bill Glahn and documented through the Scandal Tracker, which forced the media and state officials to finally take notice.
As the Wall Street Journal explains,
“The sprawling fraud cases began in 2022, under the Biden administration, when the U.S. Attorney’s Office in Minneapolis charged 47 defendants with allegedly exploiting a federally funded child nutrition program during the Covid-19 pandemic.
“Prosecutors said defendants claimed to open feeding sites across Minnesota that served thousands of children, and submitted bogus rosters of kids to receive government funds. In fact, prosecutors said, no meals were served at many sites, which in some cases were parking lots or vacant commercial spaces.
“One 24-year-old defendant, who was sentenced last month to 10 years in prison after being convicted at trial, took in more than $900,000 in fraud proceeds, prosecutors said, and spent some of it on a honeymoon in the Maldives, $30,000 on jewelry in Dubai and $64,000 for Dodge Ram pickup truck.
“The cases expanded to include fraud in Minnesota’s housing and autism-services programs.”
Since that first 2022 raid, Glahn has tracked and covered the ever-increasing fraud case. As an ever-present watchdog for this scandal, Glahn and American Experiment have been the go-to source for information about the fraud and also commentary on how the stories have been covered by the media.
For example, in addition to uncovering the incredible breadth of the fraud itself, Glahn has covered how the racial elements of this story have impacted how the media and the state have handled it. According to The The Wall Street Journal, there have been 86 people charged in multiple different Minnesota welfare fraud cases. Of those 86 people, all but eight are of Somali descent. And as Glahn explains, “The Center of the American Experiment has documented year-after-year-after-year how the Walz Administration pulled punches when confronted with accusations of racism and selective prosecution.”
As Glahn and The Manhattan Institute have pointed out, elected officials, policy professionals, and the media should be able to walk and chew gum at the same time. The actions of a small group of people shouldn’t serve as an indictment on an entire race, religion, or nationality. Details involving a perpetrators’ race, religion, or nationality shouldn’t change how a topic is investigated or reported.
As more details emerge, the depth of the fraud and the failures of government oversight continue to shock the country. However, thanks to vigilant SPN affiliates like Center of the American Experiment, the public is now aware of this scandal and can hold their leaders accountable.
And thanks to research and advocacy from SPN’s Center for Practical Federalism, states have a roadmap for reforming entitlement programs by strengthening local oversight, ensuring taxpayer resources are protected and directed to the people who truly need them.