The federal investigation into fraud in Minnesota is just a small glimpse into a much larger issue. The extent of fraud and corruption within both state and federal programs, combined with insufficient preventive measures, may represent a significant challenge for Americans today.
In March, President Donald Trump initiated an executive order to form a task force aimed at combating fraud. Vice President J.D. Vance is taking the lead on this effort, directing government agencies to pinpoint vulnerabilities in their systems to preemptively address fraud—a move seen as crucial.
During an investigation into the corruption in Minnesota by my team at Gingrich 360, we were taken aback by the overwhelming evidence of fraud. We’ve compiled our findings in a detailed report.
Recall the instance where the organization Feeding Our Future submitted a falsified attendance list to secure funding for 125 million meals for children. The list claimed 2,040 children were enrolled, but only 20 matched the school’s record. A June 2024 investigation revealed that the Education Department disregarded at least 30 complaints against Feeding Our Future and did not confirm their statements before releasing funds.
After digging deeper, I realized this is far from an isolated incident.
An audit by the Colorado Department of Health and Human Services in February 2025 found that the state’s Medicaid program had paid over $7.3 million for individuals who were deceased.
Additionally, a January 2026 report from the FCC Office of Inspector General stated that from 2020 to 2025, approximately $5 million intended for internet subsidies for those in need was mistakenly allocated to around 117,000 deceased individuals. Alarmingly, many of these cases involved people who registered in multiple states within the same month and claimed benefits posthumously.
Shifting the emphasis from only recovering stolen funds to preventing fraud in the first place is vital. Yes, retrieving embezzled money is important, but ensuring that funds reach the actual beneficiaries is essential.
The federal government reportedly loses between $223 billion and $521 billion annually due to fraud, according to data covering 2018 to 2022. In 2024, the Treasury Department managed to prevent and recover over $4 billion in fraudulent payments, but that amount barely scratches the surface of total losses.
Firstly, we need to enforce checks before funds are disbursed.
The CARES Act established the Pandemic Response Accountability Committee (PRAC) to monitor pandemic expenditures. In June 2025, PRAC raised a fraud alert about Social Security numbers used to access relief funds from three programs.
They sampled records and simply asked the Social Security Administration three main questions: Is your SSN valid? Do your name and birth date correspond? Is the individual alive? This process revealed $79 billion in suspected fraud linked to 1.4 million invalid or stolen Social Security numbers. Had such checks existed prior to the pandemic, a substantial amount of fraud could likely have been averted.
Moreover, different departments need better communication. PRAC uncovered over 40,000 instances where applicants reported higher incomes to the Small Business Administration than to the Department of Housing and Urban Development, suggesting possible fraudulent activity. Enhanced information sharing could have highlighted these discrepancies much sooner.
Additionally, we need to leverage AI to proactively thwart fraud before funds are released from the Treasury. PRAC’s Fraud Prevention Engine processes 20,000 applications per second to identify anomalies. A test with 5 million SBA disaster loan applications revealed troubling patterns, like certain applicants submitting 450 applications across 24 states, accruing $2.6 million.
Finally, existing measures, such as the Treasury Department’s Don’t Pay Initiative—which enables agencies to verify payment eligibility—must be bolstered.
Despite its promise, the implementation and adherence to this initiative among government entities has been inconsistent. For example, only 4% of institutions fulfilled the legal conditions required to access these databases in 2024. The Congressional Research Service indicates uncertainty regarding how many agencies actively utilize these databases and to what extent.
A 2024 audit by HUD highlighted database inconsistencies due to an expired computer matching contract with the Treasury in 2019. After regaining access in February 2025, HUD still struggled with consistent usage of the database.
Compounding the issue, the Do Not Pay Initiative operates under restrictions from the Privacy Act of 1974, complicating data collection. In March 2025, President Trump issued an executive order to broaden the program’s reach to more government agencies and temporarily lift specific contracting requirements. The Treasury is optimistic but seeks to access databases like the National New Hire Directory and Fair Credit Reporting Act information.
It’s crucial for Congress and state legislatures to focus on preventing misconduct within government. Gingrich 360 has produced a white paper on this matter, and I encourage a review to grasp the full scale of the issue.
We simply cannot tolerate the ongoing theft of billions from taxpayers.
