Fraud and Minnesota go hand in hand. On September 20, Abdullahe Nur Jesow, 65, became the 56th person to plead guilty in the massive Feeding Our Future fraud scheme that rocked Minnesota. That fraud scandal, wherein Nur Jeso and his accomplices stole and then laundered $17.4 million in Federal Child Nutrition Program money that was meant to feed people during the COVID pandemic. According to the Minnesota Star-Tribune, $250 million was ultimately swindled from that program.
Eight people were also charged last month in a massive housing fraud scheme through Minnesota's Housing Stability Services Program. As Townhall reported at the time:
The program was supposed to cost $2.6 million annually. But the state paid more than $21 million in claims in 2021, then $42 million in 2022, $74 million in 2023, $104 million in 2024. In just the first six months of 2025, the Program paid out another $61 million.
A federal investigation revealed that many Program providers defrauded the system. These providers acquired the names of Program-eligible beneficiaries from facilities like addiction treatment centers. They then used those individuals’ information to submit inflated and fake reimbursement claims. In this fashion, the providers acquired substantial pay-outs of taxpayer money to which they were not entitled. They used those ill-gotten gains for their own enrichment.
Now there's another fraud scandal in the state, this time involving 14 Medicaid programs.
#Breaking Minnesota halts payments in 14 Medicaid programs over fraud concerns, orders audit https://t.co/lgG09XH2zj
— The Minnesota Star Tribune (@StarTribune) October 29, 2025
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Minnesota is pausing payments to providers in 14 Medicaid programs and is ordering a third-party audit of their billing as the state seeks to crack down on fraud.
The payment pause will last up to 90 days to give the state time to detect suspicious billing. DFL Gov. Tim Walz said Wednesday the state has contracted with health services and technology company Optum to analyze Medicaid claim data in these programs and flag issues to the Department of Human Services (DHS) for review. The one-year contract with Optum will cost $2.3 million, officials said.
In a statement, Democrat Governor Tim Walz said, "We cannot effectively deliver programs and services if they don’t have the backing of the public’s trust. In order to restore that trust we are pumping the brakes on 14 programs that were created to help the most disadvantaged among us, yet have become the target of criminal activity."
Republicans have pointed to this news as proof that Governor Walz is a failed leader, even as he eyes a third term. One of his opponents called Walz an "utter failure."
.@Tim_Walz has ignored rampant fraud for 7 years. Now that the scope of the THEFT of taxpayer money is being exposed, he is trying to make up for his utter failure.
— Kristin Robbins (@KRobbinsMN) October 29, 2025
When I’m Governor, we will create a no fraud, no excuses culture and stop fraud on the front end. https://t.co/xREEs86vV3
"The fact that there are more than a dozen programs under suspicion proves that Walz’s fraud crisis is far worse, and far more widespread, than anyone was led to believe by the administration," said Republican Minnesota House Speaker Lisa Demuth.
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