U.S. Senator John Barrasso (R-Wyo.), Senate Majority Whip, addressed the Senate regarding extensive Medicaid fraud schemes in Minnesota that could cost taxpayers up to $9 billion. Barrasso described the findings of investigators who have uncovered fraudulent activities across 14 Minnesota Medicaid programs.
According to Barrasso, U.S. Attorney Joe Thompson has led investigations into these schemes and estimates that criminals have stolen at least half of Minnesota’s total Medicaid spending. The senator highlighted how fake businesses and nonprofits billed Medicaid for services never provided, including unnecessary program enrollments for children.
Barrasso cited significant increases in program costs due to fraud. For example, spending on Minnesota’s Integrated Community Support Medicaid Program rose from $4.6 million in 2021 to over $170 million three years later. Similarly, Housing Stabilization Services nearly tripled its taxpayer-funded costs within six months of 2025 compared to 2021 levels. A program for children with autism saw costs jump from $6 million in 2018 to more than $192 million by 2023.
He also pointed out daycare fraud as part of the issue, referencing reports where journalists found no children present at several state-funded daycare centers during visits.
Barrasso said: “When the government wastes even a dollar of your taxpayer money, you have a right to know what happened. When emboldened criminals steal money intended to help single moms and children in poverty, you have a right to be angry. Americans are infuriated by the staggering fraud unfolding today in the state of Minnesota. The past few weeks have shown how deep the corruption has turned out to be.”
He continued: “Investigators have uncovered fraud schemes across 14 Minnesota Medicaid programs. Joe Thompson – U.S. Attorney in Minnesota – has spent his career prosecuting fraud. Based on his extensive investigation, he believes criminals have stolen at least $9 billion from those Minnesota Medicaid programs. That is half of the total amount of money Minnesota spends for Medicaid programs in that state. Today, the fraud is so prevalent that Thompson says the state has ‘developed a fraud tourism industry.’ Can you imagine such a thing? A ‘Fraud Tourism Industry.’”
Barrasso explained how these operations function: “Here’s how these schemes work. Fraudsters set up fake businesses and nonprofit organizations. The criminals claim to provide services such as housing, food, and healthcare assistance. Then, they bill Medicaid for services they never provided. They enroll children in programs they don’t need.”
He also referenced specific examples: “In 2021, taxpayers paid $4.6 million for something called Minnesota’s Integrated Community Support Medicaid Program. Three years later – due to criminal fraud – spending for that program ballooned to more than $170 million. That’s 37 times as much in just three years.”
The senator detailed further instances involving other social service programs and cited media coverage describing the scale as “staggering.” He noted that federal authorities have charged nearly one hundred individuals related to these cases and many convictions have already occurred.
Barrasso attributed ongoing issues with oversight and enforcement under Democratic leadership at both state and federal levels while emphasizing Republican efforts aimed at combating this type of fraud through legislation like the Working Families Tax Cuts Act.
“Our Working Families Tax Cuts law fights fraud,” Barrasso stated during his remarks on legislative measures designed to tighten eligibility requirements for public assistance programs and implement work requirements.
He added: “Additionally, Republicans are conducting aggressive congressional oversight… On Friday, the entire Senate Republican Conference demanded Governor Walz explain his actions… We asked nine detailed questions… Governor Walz knew about this widespread fraud.”
Barrasso concluded by affirming continued Republican commitment: “Republicans will not stop until the depth of this fraud is uncovered and prosecuted. Republicans are committed to preventing it from happening again.”
