Federal Funds Fraud Scandal in Minnesota: Rep. Dan Meuser Demands Accountability

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Rep. Dan Meuser, R-Pa., warned Thursday that fraud investigators have uncovered a scheme in Minnesota that must end with real consequences, stating, “people must be held accountable” for what he called massive abuse of federal dollars.

Appearing on “Wake Up America Early,” Meuser argued that the alleged scheme centered in Minneapolis demonstrates why Congress and the Trump administration need stronger oversight of spending that flows through state agencies.

“This is outrageous,” he said, describing what he called “levels of waste, abuse, and fraud” that could reach deep into major programs.

Meuser pointed to Treasury Secretary Scott Bessent’s estimates to underscore the scale, noting the official had stated such waste could be as high as 10%, 15%, or even 20%.

He further cited Dr. Mehmet Oz of the Centers for Medicare & Medicaid Services (CMS), who reportedly estimated that waste, abuse, and fraud within Medicare and Medicaid could also reach up to 20%.

“At 20%, you’re talking about $1 trillion right there in potential waste of taxpayers’ money,” he said, arguing that the stakes demand accountability.

Meuser identified Minneapolis as “ground zero” for the alleged misconduct, stating federal funds were poured into the area without sufficient safeguards.

“All this federal funding is going there, it’s the state’s responsibility to allocate it in a responsible manner, and they failed miserably,” he added.

He alleged officials “perhaps intentionally doled out all of these funds to organizations that really didn’t exist,” claiming such actions were intended to gain political favor with specific groups.

Meuser noted the situation in Minnesota involves arrests tied to the local Somali community, adding, “No offense to Somalians, but it just happened to be their group that’s being arrested and is well known for extorting billions of dollars from American taxpayers.”

He warned the investigation would not stop there, pledging broader scrutiny of states with unusual spending patterns over the past few years.

Meuser framed his remarks as part of an anti-corruption effort, stating, “We want to drain the swamp” and “bring accountability.”

“We want to root out waste, abuse, and fraud,” he said. “I am dedicating much of my next year to just that, including consumer fraud as well as government funding fraud.”