Half of $18Billion in Federal Funds for Minnesota-Run Programs May Have Been Defrauded, Official Says

MINNEAPOLIS, UNITED STATES – DECEMBER 18: Joe Thompson, first assistant to the U.S. attorney speaks at a press conference held at the Federal Courthouse regarding Medicaid fraud in the state of Minnesota, on December 18, 2025 in Minneapolis, Minnesota, United States. (Photo by Christopher Juhn/Anadolu via Getty Images)

MINNEAPOLIS (AP) — Federal prosecutors say about half of the roughly $18 billion in federal funds that supported 14 Minnesota-run programs since 2018 may have been stolen. First Assistant U.S. Attorney Joe Thompson said Thursday that the scale of fraud in Minnesota puts services at risk for people who really need them. While prosecutors typically see fraud manifest as providers overbilling, Thompson says companies have been created to provide zero services while pocketing federal funds for international travel, luxury vehicles and lavish lifestyles. He says the “magnitude cannot be overstated,” and that the fraud is ”staggering.”