Morning Wire: “A ‘Billion-Dollar Fraud Machine’: Minnesota Scandal Explodes”

Date: December 31, 2025
Hosts: John Bickley & Georgia Howe
Guest: Rep. Tom Emmer (House Majority Whip, MN-6)
Episode Focus: The widespread fraud scandal in Minnesota, highlighting the scope of government failures, political incentives, implicated individuals, and potential reforms.

Episode Overview

This special edition of Morning Wire conducts an in-depth interview with House Majority Whip Tom Emmer, focusing on a massive fraud scandal involving Minnesota government programs. The conversation scrutinizes the oversight failures under Governor Tim Walz and Attorney General Keith Ellison, the systemic issues enabling the fraud, the demographic and political context, the alleged diversion of funds to terrorist groups, and the need for stronger federal safeguards. The episode aims to shed light on how billions in taxpayer dollars were siphoned off and what accountability and reforms are needed.

Key Discussion Points & Insights

1. The Genesis and Scale of the Fraud ([01:44]–[03:49])

• Chronology and Political Context:

  • Emmer contextualizes the scandal by tracing policy changes and key political figures in Minnesota’s government since 2017.
  • Attorney General Lori Swanson's tenure saw an attempt to investigate Somali daycare fraud.
  • After electoral shifts, Tim Walz became Governor, and Keith Ellison became AG, which Emmer claims marked a turning point for oversight and enforcement.

• Scope of the Problem:

  • Emmer claims the fraud permeates multiple government programs, calling it a “billion-dollar fraud machine.”
  • The alleged malfeasance extends beyond a single department and is said to represent systemic failure.

  "This is everywhere. In these, in this Tim Walls administration. ... The facts are this. Today there are roughly, by some estimates, about 80,000 Somali immigrants that are living in Minnesota. The vast majority of them live in Minneapolis or Hennepin county..."
  — Tom Emmer [03:23]

2. Political Incentives and Demographics ([03:49]–[06:07])

• Voter Base Dynamics:

  • Emmer criticizes Walz and Ellison for being reliant on votes from immigrant communities, particularly in urban counties, to secure razor-thin electoral victories.
  • He alleges political protectionism has stymied investigations and prosecutions.

  "Keith Ellison instantly set up a policy in his Attorney General's office that required his approval before any further investigations into fraud could go forward. Guess what? He's never approved one of them."
  — Tom Emmer [04:26]

3. Major Fraud Cases Detailed ([06:07]–[08:13])

• Pandemic Nutrition Program:

  • Minnesota administered COVID relief funds to feed children through school programs; $250 million was fraudulently diverted.
  • Emmer recounts an anecdote about a rabbi who had to show students via Zoom to prove legitimacy of his program, contrasting it with the lack of scrutiny given to fraudulent entities.

• Medicaid Housing & Daycare Frauds:

  • Estimated $100 million fraud in Medicaid housing within four years.
  • 80 Somali-run daycare centers under investigation; notable exploitation involving false autism diagnoses, leading to inflated claims.

  "Apparently some Somali woman built $14 million out of this thing by going around and recruiting others to have their kids so called diagnosed with autism."
  — Tom Emmer [07:50]

• Terrorist Connections:

  • Claims millions of dollars were sent back to Somalia, allegedly reaching Al Shabaab, a designated terrorist group.

4. Accountability and Investigations ([08:13]–[10:06])

• Slow Public and Legal Response:

  • Emmer asserts that meaningful oversight only began after national attention, specifically after President Trump highlighted the issue.
  • 80+ indicted individuals in the pandemic fraud case; "90% ... are from the Somali community in Minnesota."
  • Facebook whistleblower pages surfaced and disappeared, with allegations of retaliation against those who spoke up internally.

• Federal Interest:

  • U.S. Department of Justice is now investigating not just the fraud, but possible complicity or criminal negligence among state officials.

  "...our U.S. justice Department is starting to pick up where Minnesota should have been involved investigating not only the fraud, but who might have been not just incompetent, but actively engaged in the fraud because they should be criminally held, criminally responsible."
  — Tom Emmer [09:34]

5. Media Coverage, Race, and Political Narratives ([10:06]–[12:11])

• Suppression of Inquiry:

  • Emmer and the hosts argue that local media previously downplayed or ignored the scandal, attributing this to political correctness and fear of being labeled xenophobic.

• Accusations of Racism/Xenophobia:

  • Emmer rejects claims that criticisms are racially motivated, stating the root issue is criminality, not ethnicity.

  "She [Ilhan Omar] wants this to be about race. She wants this to be, you know, xenophobia. It's got nothing to do with that. This is about crimes committed by criminals."
  — John Bickley [11:32]

6. Alleged Involvement of Elected Officials ([10:29]–[11:53])

• Ilhan Omar’s Connections:
  • Questions about Representative Ilhan Omar’s links to the fraud, both through authorship of pandemic relief funding and her defense of certain accused individuals.
  • Emmer labels Omar “the most duplicitous con artist I have ever seen,” calling for prosecution if direct involvement is proven.

7. New Policy Solutions and Legislative Reforms ([12:11]–[14:06])

• Federal Oversight Recommendations:

  • Emmer suggests Congress institute mandatory weekly reporting and more rigorous oversight for all future federal relief programs to detect and prevent fraud.

  "...maybe should be standard protocol from this point forward for all of the federal agencies that you got to report weekly."
  — John Bickley [13:54]

• Systemic Reform Emphasis:

  • The need for triggers and accountability mechanisms is highlighted for states receiving large transfers of federal funds.

8. Immigration, Integration, and Deportations ([14:06]–[15:15])

• Criminal Accountability for Immigrants:

  • Emmer calls for the deportation of any immigrant proven to have lied to gain citizenship or participated in fraud, adding it’s essential to uphold the rule of law.

  "Anybody who came to this country misrepresenting who they were or their eligibility to enter the country ... they should be rounded up and shipped back to where they came from because that is the law."
  — John Bickley [14:50]

• New Federal Crackdowns:

  • Reference to Secretary Scott Besant’s (possibly fictional) measures targeting financial transactions linked to fraud and illegal immigration, seen as a promising first step but not sufficient.

Notable Quotes & Memorable Moments

• On Accountability:
  "If she's involved in any way, she should be prosecuted just like everybody else."
  — Tom Emmer on Ilhan Omar [11:51]

• On the Scale of Fraud:
  "If you look at the numbers ... it's over a billion dollars under the Tim Walls administration. That can't just be incompetence."
  — Tom Emmer [13:25]

• On Ethnic Dimensions and Excuses:
  "She wants this to be about race. ... This is about crimes committed by criminals."
  — John Bickley [11:32]

• On Policy Reform:
  “We need to find out ... how did $250 million go from the federal government to the state of Minnesota and then to a bunch of fraudsters?”
  — Tom Emmer [13:06]

Important Timestamps

• [01:44] – Interview begins with Tom Emmer
• [03:23] – Demographic context, Somali community concentration in Minnesota
• [04:26] – Political manipulation of fraud investigations
• [06:07] – Major pandemic fraud case detailed
• [07:50] – Medicaid housing and daycare fraud
• [08:13] – DOJ involvement, whistleblower claims
• [10:29] – Ilhan Omar’s alleged connections and defense of accused fraudsters
• [12:41] – Need for new federal oversight of relief programs
• [14:50] – Emmer’s stance on deporting fraudsters and new financial scrutiny

Episode Tone

• The tone is urgent and direct, with a clear point of view critical of Minnesota’s Democratic leadership and those perceived as neglecting or actively obstructing investigations.
• The language is combative, especially regarding accountability, and at times accusatory toward protected groups and individuals.
• There is a strong emphasis on the need for reform and the dangers of political correctness.

For Listeners: Key Takeaways

• The Minnesota fraud scandal is large, multifaceted, and rooted in major oversight failures.
• Political calculations, particularly regarding vital voting blocs, have allegedly contributed to a lack of accountability.
• The fraud implicates not just lower-level operators, but potentially state officials and elected federal representatives.
• Congressional reforms are being considered to enforce transparency and prevent further loss of taxpayer money.
• The episode underscores the need to balance immigrant integration with robust enforcement of laws to protect the public trust.

Note: All timestamps and quotes reflect direct attributions from the podcast transcript. Listeners with an interest in policy reform, fraud prevention, and government accountability will find this episode especially relevant.