The U.S. Department of Labor announced plans for a “targeted review” of Minnesota’s unemployment insurance program amid mounting scrutiny of fraud in the state’s human services programs — now a politically potent issue that’s reached the Oval Office.
The department sent a letter to the Minnesota Department of Employment and Economic Development asserting that recent news reports of fraud in the state’s Medicaid-funded human services programs could signal fraud and abuse in unemployment benefits.
“If there has been any related abuse of our (unemployment insurance) systems, it will not be tolerated, and I trust our specialized strike team to get to the bottom of this and report their findings directly to me,” Labor Secretary Lori Chavez-DeRemer said in a press release.
A spokeswoman for DEED said the agency routinely exceeds the federal Department of Labor’s metrics for payment accuracy and has a fraud rate below the national average.
“We welcome the opportunity to illustrate the strength of our payment controls and oversight,” DEED said.
Chavez-DeRemer is just the latest Trump official to take an interest in fraud in Minnesota in recent weeks after it caught the attention of President Trump, who’s used heritage of those charged in the Feeding Our Future and Medicaid frauds — most have Somali ancestry — to attack the entire Somali American community as “garbage.”
Treasury Secretary Scott Bessent said last week his agency is increasing scrutiny on funds going to “areas of concern, such as Somalia,” and investigating allegations that fraudsters have directed their stolen loot to the al-Shabaab militant group. These allegations, based on anonymous sources published in a conservative outlet, are not new and unsupported by any federal terrorism financing charges. (Federal prosecutors have said the fraudsters are greedy, not ideological.)
Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid, threatened earlier this month to withhold funding to programs suspected of being targeted by widespread fraud unless the state Department of Human Services provides weekly updates on its audit activities. Those include the 14 programs the Walz administration announced would be scrutinized in October.
The U.S. Department of Health and Human Services and the U.S. Department of Housing and Urban Development have also announced probes.
Department of Homeland Security Secretary Kristi Noem claimed without evidence that 50% of Somali visas are fraudulent and blamed Gov. Tim Walz, even though her own agency — not the state — grants visas.
Minnesota Reformer is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: info@minnesotareformer.com.
-
Contributed/Nicole Neri/Minnesota ReformerCyndy Martin’s resignation came one day before the DFL’s State Central Committee was scheduled to meet. The committee is the governing body of the party that meets three to four times each year. -
Contributed/briandjan607 via FlickrPositions include the 7th and 8th congressional districts in Northern MN. The board provides leadership and coordination on environmental issues, and chances for public engagement. -
Contributed/Michelle Griffith via Minnesota ReformerMike Lindell enters a crowded field of GOP candidates who believe they’re best able to beat Gov. Tim Walz, who is running for a third term next year. -
Contributed/Thor Edvardsen via FlickrOf the $12 billion announced by the USDA for a new relief package for farmers, $11 billion will go to commodity crop producers, and $1 billion will go to fruit and vegetable producers. -
Heidi Holtan/KAXEThe pause comes as the state grapples with what prosecutors call the largest public services scandal in history, with $218 million in fraud uncovered to date. -
Concentrated power in agriculture is a consistent rallying cry for small farmers, who say a handful of food producers are given too much leeway to control the marketplace. -
Contributed/Jerry Burnes / Iron Range TodayThe city faces increased costs from a police contract, repayment to the DNR of mining tax revenue the agency overpaid and a new fire truck. -
Contributed/Nicole Neri/Minnesota ReformerThe incident has split Democrats between those who believe due process should play out for the accused and those who believe a personal scandal will derail the goals of the party in northern Minnesota.
-
Megan Buffington/KAXECounties, cities and school districts host these meetings at the end of each year, after proposed property tax statements are sent out with tax estimates based on the proposed levies. -
Contributed/Adobe Stock via Minnesota News ConnectionMinnesota's program distributes funding to more than 100,000 income-eligible households. About 40% had a person over age 60 or with a disability, and 1 in 6 had children younger than 6.
