Loeffler said Minnesota is just the first state under review for pandemic-era fraud, signaling a broader crackdown under the Trump administration’s America First agenda. She stressed that after years of unchecked abuse, the American people would finally see those who stole from taxpayers held accountable.
Earlier this month, Loeffler had notified Minnesota Gov. Tim Walz that the SBA would immediately halt more than $5.5 million in annual support to resource partners in the state until further notice.
The move comes as investigations reveal that Minnesota became ground zero for pandemic-era fraud, with a Somali-centered criminal network reportedly siphoning at least $1 billion through welfare and Medicaid programs, contributing to a total estimated loss of $9 billion.
U.S. Attorney Joseph Thompson confirmed that billions in Medicaid funding were likely lost to fraud, calling it an unprecedented abuse of taxpayer dollars.
Loeffler said the Walz administration bears responsibility for allowing this system to metastasize, dismissing early warnings from legislators and whistleblowers and labeling oversight efforts as racially insensitive. She blamed the governor for making Minnesota the epicenter of one of the largest fraud scandals of the COVID-19 era, describing the state’s policies as deliberately designed to pump out welfare funding without oversight or accountability.
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