Trump proposes Medicaid cuts and Gov Walz has jumped on board with the idea, announcing this week an executive order to reduce Medicaid spending.
The following day, the Feds announced charges regarding "housing stabilization" services.
"Minnesota became the first state in 2020 to leverage Medicaid dollars to help older adults and people with disabilities find and maintain housing, but the program is “riddled with fraud,” Thompson said. Program costs have ballooned suspiciously since its inception, and “most of it is fraud, as far as I can tell,” Thompson said.
Analysts predicted the program would cost about $2.6 million annually. But in 2021, the program paid out over $21 million in claims. It then ballooned to $42 million in 2022, $74 million in 2023 and $104 million in 2024, according to the U.S. Attorney’s Office.
In the first six months of 2025, the program paid out another $61 million.
The latest charges are another instance of the alleged defrauding of a Minnesota public program, joining the looting of a pandemic-era food aid program and the state’s autism program.
“Minnesota is drowning in fraud,” Thompson said.
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