Minnesota Fraud

Minnesota lawmakers heard testimony Sept. 9, 2026, about the domino effects felt by people closely tied to human service programs as the state combats fraud.

‘Ghost students’ are a growing national problem largely targeting public two-year institutions like Century College, where staff and faculty have been fighting the issue for years.

The feds say they need more documentation from those states to support some Medicaid claims for services that are at high risk for fraud.

The demand comes after the House Oversight and Government Affairs Committee released a report that said Walz and Ellison ignored rampant fraud in the state’s social service programs.

The state abruptly paused payment to thousands of care providers in May in a rush to meet a federal deadline.

The five-month process reviewed Medicaid providers in 13 service areas in all 87 counties, with more than 3,400 providers disenrolled by the state's Department of Human Services.

Following high-profile fraud cases, Minnesota will join other states in overhauling systems to comply with stricter Medicaid work requirements.

Fifteen people are charged with targeting over $90M across Medicaid programs aimed at helping the most vulnerable, including homeless people, children with autism and disabled people.

Aimee Bock, 41, was convicted for her role in the $242 million Feeding Our Future fraud scheme, which has so far led to 70 indictments and 60 convictions.

The deal is Gov. Tim Walz’s last, as his term ends in January and he’s not seeking reelection. The deadlocked Minnesota House — jointly controlled by Republicans and Democrats — has tempered Walz’s ambitions.