Scandal Claimed to Be of an Industrial Scale
. It has created a gaping hole between the federal prosecutors and Minnesota state officials since they conduct claims of a staggering multibillion-dollar fraud involving the state Medicaid programs. With federal officials alarmed by acts of fraud tourism and industrial-scale theft, Governor Tim Walz has intervened to take the stage in assuring a fix to a system that could have lost billions under his watch.
A Staggering Loss: the Federal Charges.
On Thursday, December 18, 2025, First Assistant U.S. Attorney, Joe Thompson gave a bombshell update on the integrity of Minnesota social services. Those that were referred to as the high-risk programs amount to 14 state-run programs that have billed up to 18 billion since 2018 according to the federal investigators. The alarming part? Thompson puts the figure at half or more of that amount, which could have been stolen off through fraudulent transfers, at 9 billion or more. The size of fraud in Minnesota is something short of exaggerable. It takes staggering sums of money that have been lost and Thompson has called it industrial scale fraud that has made the state a magnet to bad actors.
Walz Responds: I Am Accountable.
It was the Governor Tim Walz, speaking on-camera, the first time since the release of the figures, who admitted that the situation is so bad but he should avoid sensationalism. As much as he admitted to being in charge of the oversight, he also wondered why there was no concrete evidence of the amount of 9 billion.
The most important insights of the reply by Walz are:
• Direct Accountability: This is on my watch, I am responsible of this and more importantly, I am the one that will rectify this.
Call for Evidence: Walz has said that even though the state is horrified by any amount of fraud, his administration has not found federal evidence to prove that the estimate is in the multi-billion.
• Proactive Measures: The Governor mentioned the new post of the Director of Program Integrity and a 90-day freeze of payments to the high-risk programs to have the third-party audits.
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What Happens Next?
That is not the end of the investigation. The federal authorities anticipate additional charges being filed because they are turning every rock. In the meantime, Minnesota DHS is striving to match its data with federal reports to turn off the tap of illegitimate payments. The state is waiting on the findings of a full third-party audit, which will be submitted in late January 2026 and should give it a better understanding of the real financial harm.
FAQs
Q: What are the programs you are studying?
14 high risk programs, including Housing Stability Services Program Early Intensive Developmental and Behavioral Intervention (autism services) and Integrated Community Supports
Q: Have you gotten any money?
Thus far, police have been capable of seizing approximately 60-70 million dollars of resources, including luxury automobiles, properties and cryptocurrency, in the former scenario of Feeding Our Future.
Does this have anything to do with the case of Feeding Our Future?
A: Yes. The majority of the ongoing investigations are a continuation of leads unearthed in the course of the $300 million Feeding Our Future pandemic-food fraud investigation.
Disclaimer:
The news content discussed in this paper is informed by the available reports and trusted sources. Updates on the official news should be checked by readers.