ST. PAUL, MN - The U.S. Department of Labor announced that it will be conducting a "targeted review" of several of Minnesota's benefits programs, including unemployment and nutrition benefits.
In a letter sent to the Minnesota Department of Employment and Economic Development, the federal agency stated that "concerns of recent reports of fraud, waste, and abuse might compromise the integrity" of Minnesota's Unemployment Insurance Program, FOX9 reported.
The letter reportedly indicated that the targeted review will be aimed at "alleged discoveries" found within several benefits programs, including Minnesota's Federal Child Nutrition Program, Early Intensive Developmental and Behavioral Intervention Autism Program, and the Housing Stability Services Program.
The federal government has increasingly begun to target Minnesota's programs as the source of fraud, according to FOX9. A letter on behalf of the Centers for Medicare and Medicaid Services (CMS) last week stated the agency is "increasingly concerned with the performance and integrity of Minnesota's Medicaid program" that requires immediate action, or the state's federal Medicaid funding could be withheld from programs.
Minnesota's Housing Stabilization Services program stopped its payments on October 31, after multiple criminal indictments alleging widespread fraud. The program was launched in 2020 to help seniors and people with disabilities secure housing.
Minnesota was also notoriously the home of the Feed our Future scheme, which was allegedly the largest embezzlement of pandemic-era funds found to date in the nation.
"I am appalled at what we are hearing about potential fraud coming from numerous benefits programs in Minnesota. If there has been any related abuse of our UI 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," said Labor Secretary Lorie Chavez-DeRemer.
"Our mission to protect American workers remains unchanged, and I will not allow malicious actors to destroy the integrity of this trusted program."
Following the heightened scrutiny and increased calls for transparency following revelations of the alleged fraud, Minnesota Governor Tim Walz announced the creation of a new statewide fraud prevention program. He announced this new initiative on December 12 and said it will utilize outside experts from a forensic accounting team. The team of experts will report to an independent director of program integrity, Tim O'Malley.
O'Malley previously served as the head of the Minnesota Bureau of Criminal Apprehension and interim chief judge of the Minnesota Court of Administrative Hearings.
"Minnesota is a great place to live. We understand that the strength and prosperity of our state depends on the ability of every Minnesotan to thrive. However, our generosity has been taken advantage of by an organized group of fraudsters," Gov. Walz wrote on X.
According to U.S. Department of Justice figures, there has been about $822 million in fraud from Minnesota services, including $300 million from Feeding our Future, nearly $220 million in autism program fraud, and $302 million from the Housing Stabilization Program.
In a letter sent to the Minnesota Department of Employment and Economic Development, the federal agency stated that "concerns of recent reports of fraud, waste, and abuse might compromise the integrity" of Minnesota's Unemployment Insurance Program, FOX9 reported.
The letter reportedly indicated that the targeted review will be aimed at "alleged discoveries" found within several benefits programs, including Minnesota's Federal Child Nutrition Program, Early Intensive Developmental and Behavioral Intervention Autism Program, and the Housing Stability Services Program.
The federal government has increasingly begun to target Minnesota's programs as the source of fraud, according to FOX9. A letter on behalf of the Centers for Medicare and Medicaid Services (CMS) last week stated the agency is "increasingly concerned with the performance and integrity of Minnesota's Medicaid program" that requires immediate action, or the state's federal Medicaid funding could be withheld from programs.
Minnesota's Housing Stabilization Services program stopped its payments on October 31, after multiple criminal indictments alleging widespread fraud. The program was launched in 2020 to help seniors and people with disabilities secure housing.
Minnesota was also notoriously the home of the Feed our Future scheme, which was allegedly the largest embezzlement of pandemic-era funds found to date in the nation.
"I am appalled at what we are hearing about potential fraud coming from numerous benefits programs in Minnesota. If there has been any related abuse of our UI 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," said Labor Secretary Lorie Chavez-DeRemer.
"Our mission to protect American workers remains unchanged, and I will not allow malicious actors to destroy the integrity of this trusted program."
Following the heightened scrutiny and increased calls for transparency following revelations of the alleged fraud, Minnesota Governor Tim Walz announced the creation of a new statewide fraud prevention program. He announced this new initiative on December 12 and said it will utilize outside experts from a forensic accounting team. The team of experts will report to an independent director of program integrity, Tim O'Malley.
O'Malley previously served as the head of the Minnesota Bureau of Criminal Apprehension and interim chief judge of the Minnesota Court of Administrative Hearings.
"Minnesota is a great place to live. We understand that the strength and prosperity of our state depends on the ability of every Minnesotan to thrive. However, our generosity has been taken advantage of by an organized group of fraudsters," Gov. Walz wrote on X.
According to U.S. Department of Justice figures, there has been about $822 million in fraud from Minnesota services, including $300 million from Feeding our Future, nearly $220 million in autism program fraud, and $302 million from the Housing Stabilization Program.
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