Massive federal programs, particularly those farmed out to the states, have always been ripe for fraud. Now it appears Minnesota has added a new dimension to the amount and kind of fraud possible, certainly in its maladministration of Medicaid. So serious and blatant is the fraud Health and Human Services—HHS—Director Dr. Mehmet Oz is threatening to shut off the federal money spigot.

At City Journal, Chris Rufo wrote:   

Our investigation shows what happens when a tribal mindset meets a bleeding-heart bureaucracy, when imported clan loyalties collide with a political class too timid to offend, and when accusations of racism are cynically deployed to shield criminal behavior. The predictable result is graft, with taxpayers left to foot the bill.

If you were to design a welfare program to facilitate fraud, it would probably look a lot like Minnesota’s Medicaid Housing Stabilization Services program. The HSS program, the first of its kind in the country, was launched with a noble goal: to help seniors, addicts, the disabled, and the mentally ill secure housing. It was designed with “low barriers to entry” and “minimal requirements for reimbursement.” Nonetheless, before the program went live in 2020, officials pegged its annual estimated price tag at $2.6 million.

Costs quickly spiraled out of control. In 2021, the program paid out more than $21 million in claims. In the following years, annual costs shot up to $42 million, then $74 million, then $104 million. During the first six months of 2025, payouts totaled $61 million.

It would appear all cultures are not alike and equally valuable. Certainly not the Democrat Party culture of Minnesota and not the imported Somali Muslim clan culture, coincidentally also of Minnesota.

Obviously, Somali criminals among the 100,000 strong Minneapolis Somali enclave quickly recognized an easy opportunity and took increasing advantage of it. They apparently shipped plenty of that money off to their clansmen in Somalia. The largest single funder of Somali Islamist terror group Al-Shabaab now appears to be the Minnesota taxpayer. Dr. Oz addressed the Medicaid fraud allegations on X:

Graphic: X Post

Mary Chastain at Legal Insurrection notes:

The Treasury Department started an investigation last week.

Graphic: X Post

The fraud was so obvious and blatant, even a Minnesota state agency couldn’t hide it:

Minnesota’s Department of Human Services dropped the HSS program this year due to “credible allegations of fraud.”

Joe Thompson, then-Acting U.S. Attorney for the District of Minnesota, claimed that the “‘vast majority’ of the HHS program was fraudulent.”

And I’m sure he’s right. This is the sort of thing that happens when you invite Islamist clans to settle in a formerly decent state run by an always indecent political class.

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Mike McDaniel is a USAF veteran, classically trained musician, Japanese and European fencer, life-long athlete, firearm instructor, retired police officer and high school and college English teacher. He is a published author and blogger. His home blog is Stately McDaniel Manor.