Minneapolis, Minnesota — Federal authorities have deployed investigators to Minneapolis as part of what Homeland Security Secretary Kristi Noem described as a “massive” investigation into widespread fraud involving publicly funded programs.
Noem said Monday that Homeland Security Investigations, a division of Immigration and Customs Enforcement, is actively conducting on-the-ground operations targeting suspected fraud tied to child care and other social service programs. The Department of Homeland Security confirmed investigators are going door to door at locations believed to be connected to fraudulent activity, emphasizing arrests would follow where abuse of taxpayer funds is found.
The renewed scrutiny follows the expansion of a long-running federal investigation into Minnesota’s social services system. Earlier this month, federal prosecutors said they broadened their probe from three programs to 14 Medicaid-funded initiatives after uncovering suspicious billing patterns. According to reporting, preliminary assessments suggest that more than half of the roughly $18 billion spent on the programs under review may have been improperly obtained.
The investigation has drawn national attention after a viral video by an independent journalist showed a day care facility appearing largely inactive despite receiving significant state funding. Conservative figures aligned with President Donald Trump have accused Minnesota Gov. Tim Walz of failing to curb fraud, an allegation his office strongly disputes.
Walz has said those responsible for fraud should face prison but criticized what he described as efforts to politicize the case or stigmatize immigrant communities. Some state officials have raised concerns about the investigation’s disproportionate impact on Minnesota’s Somali population, though federal prosecutors maintain the inquiry is evidence-driven.
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