Minneapolis, Minnesota — A widely repeated claim that Minnesota has suffered $9 billion in social-services fraud is facing renewed scrutiny after a local television investigation found that criminal cases prosecuted so far involve less than $500 million.
KSTP-TV traced the $9 billion figure to former First Assistant U.S. Attorney Joe Thompson, who said in December 2025 that fraud might account for “half or more” of roughly $18 billion spent through 14 high-risk Medicaid programs since 2018. Thompson later clarified that he was describing the possible magnitude of fraud, not providing a precise accounting.
Republicans and Trump administration officials have since frequently cited $9 billion as the scale of Minnesota’s fraud problem. A March report from the Republican-led House Oversight Committee gave the estimate additional prominence, saying federal prosecutors believed “as much as $9 billion” may have been stolen.
That report, however, does not establish that investigators have documented $9 billion in stolen funds. KSTP found currently prosecuted cases total under $500 million, including the roughly $250 million Feeding Our Future scheme.
Minnesota Republicans and conservative groups criticized KSTP for emphasizing the distinction, arguing that criminal prosecutions will inevitably capture only part of the actual fraud.
Minnesota’s Department of Human Services said any fraud is unacceptable but referred to $9 billion as a “claim,” noting that investigations and new criminal referrals remain underway.
The disagreement is therefore less about whether Minnesota has experienced serious fraud than whether a preliminary prosecutorial estimate should already be presented as an established $9 billion loss.
Sources
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