Morning Wire – “DEI Fraud Exposed & Mamdani’s Radical Moves”

Date: December 11, 2025
Hosts: Jon Bickley & Georgia Howe

Overview

This episode unpacks three main developments at the intersection of politics, government policy, and urban leadership:

• The exposure and investigation of alleged multi-billion dollar DEI (Diversity, Equity, Inclusion) program fraud in federal contracting
• Economic updates as the Federal Reserve cuts interest rates, with political implications
• Controversial policies and appointments by New York’s incoming Mayor Zoran Mamdani, signaling a leftward shift in city leadership
  The hosts and their guests offer analysis, context, and pointed criticisms throughout.

Key Discussion Points & Insights

1. Senate Scrutinizes DEI Fraud in Government Contracting

Guest: Cabot Phillips, Daily Wire senior editor
Main Points:

• The Small Business Administration’s 8(a) program, aimed at socially & economically disadvantaged businesses, has been heavily abused under DEI mandates, increasing racial and gender quotas for federal contract awards.
• Billions of taxpayer dollars flowed into these contracts; many were fraudulently administered.
• Luke Rosiak, a Daily Wire investigative reporter, testified to rampant fraud:
  • Minority-owned firms would “win” contracts then outsource work to non-minority firms, keeping profits.
  • Large corporations (e.g. Deloitte, Booz Allen Hamilton) would collaborate with small firms purely for access to set-aside contracts.
• Notable Quotes:
  • "[8A] creates a random group of influence peddlers who, like lobbyists, get rich by selling access to government insiders for the benefit of big business while driving up the costs for all of us. This is the kind of thing people hate about Washington. You owe it to voters to end this program." – Luke Rosiak [04:11]
  • “Wherever there’s the prospect of millions of dollars going to somebody without the usual competitive process, the free market is going to find creative ways to get that money to where it would otherwise have gone, which unfortunately often means big companies.” – Luke Rosiak [04:38]

2. Economic Update: Federal Reserve Cuts Interest Rates

Details:

• The Fed lowers interest rates by a quarter point, now in the 3.5–3.75% range, the lowest in 3 years.
• Traditionally, rates are cut to boost hiring and reduce unemployment; now, the labor market’s slowdown is the central concern, even as inflation risks remain.
• Chair Jerome Powell describes the challenge of balancing inflation with employment:
  • “In the near term, risks to inflation are tilted to the upside and risks, risks to employment to the downside. A challenging situation. There is no risk free path for policy as we navigate this tension between our employment and inflation goals.” – Jerome Powell [05:43]
• President Trump reportedly plans to replace Powell when his term ends in May 2026; frontrunners include Fed governors, a BlackRock executive, and Trump’s NEC director Kevin Hassett.

3. New York’s Mayor-Elect Zoran Mamdani: Controversy Before Inauguration

Guest: Megan Basham, Daily Wire culture reporter
Highlights:

• Mamdani, a Democratic Socialist, is facing scrutiny for both policy stances and personnel decisions.
• ICE Resistance Video:
  • He publicly advised immigrants on their rights to “stand up to ICE” and resist entry without a judge-signed warrant.
  • “If ICE does not have a judicial warrant signed by a judge, you have the right to say, ‘I do not consent to entry,’ and the right to keep your door closed.” – Zoran Mamdani [08:51]
  • Critics charge that this crosses from informing people of rights into encouraging evasion, including by those with criminal backgrounds.
• Appointment Controversies:
  • Mamdani’s justice reform team includes Myson Lennon, a former hip-hop artist convicted for armed robberies, who later became a Black Lives Matter activist.
  • Other team members have histories of opposition to law enforcement and controversial activism (e.g., Linda Sarsour, Lamubambandele, Alex Vitelli).
  • Benny Basquiat, Corrections Union head: “disheartening and deeply disturbing.” [10:41]
  • Retired NYPD John Chell notes a pattern of anti-police personnel.
• Homelessness Policy:
  • Pledges to end “encampment sweeps” unless permanent housing is available; adopts a “housing first” model.
  • Outgoing Mayor Eric Adams warns this is “idealism colliding with realism,” likely to worsen public order.

4. Minnesota DEI/Fraud Scandal Expands

Guest: Rep. Tom Emmer (MN-6, House Majority Whip)
Main Points:

• Minnesota has seen massive fraud in relief programs, especially during and post-pandemic.
• Key Examples:
  • $250 million “nutritional supplement” program fraud; the largest pandemic case nationwide.
  • Medicaid housing fraud: $2 million/year in 2020 ballooned to $100+ million by 2024.
  • Allegations that funds were funneled to Somali crime rings and even terrorist groups.
• Emmer’s Criticism:
  • “First thing you do is get rid of Tim Walz and Keith Ellison and Ilhan Omar. I mean, there’s your biggest structural problem right there...” [13:43]
  • Claims Attorney General Ellison blocks investigations for political reasons, relying on votes from immigrant communities.
  • “90% of the crimes we’re talking about have been committed by people that are in the Somali community. ...They have been sending millions back to Somalia into the hands of Al Shabaab, so a known terrorist group.” [15:03]
  • Cites collaboration between US Senators and activists to ramp up federal investigations, as state accountability fails.

Notable Quotes & Memorable Moments

• On DEI Fraud (Luke Rosiak):
  “This is the kind of thing people hate about Washington. You owe it to voters to end this program.” [04:11]
• On Immigration Rights (Mamdani):
  “If ICE does not have a judicial warrant signed by a judge, you have the right to say, ‘I do not consent to entry,’ and the right to keep your door closed.” [08:51]
• On New York's Police Reform Team (Megan Basham):
  “Mom Donnie filling his team with these anti-cop firebrands—people like Black nationalist Lamubambandele and Defund the Police guru Alex Vitelli...” [11:13]
• On Minnesota Fraud (Tom Emmer):
  “90% of the crimes we’re talking about have been committed by people that are in the Somali community. ...They have been sending millions back to Somalia into the hands of Al Shabaab.” [15:03]

Timestamps for Major Segments

• [02:47] – Senate investigates DEI fraud; Luke Rosiak’s testimony
• [05:08] – Federal Reserve interest rate update; Powell quote
• [06:09] – Trump’s anticipated replacement of Jerome Powell
• [07:59] – Zoran Mamdani, incoming NYC mayor; policy and personnel controversies
• [08:41] – Mamdani’s ICE advisory to immigrants
• [09:41] – Controversial appointments to Mamdani’s administration
• [11:17] – Homelessness policy shift in NYC
• [13:04] – Minnesota fraud: Rep. Emmer interview

Tone & Language

The episode is brisk, pointed, and critical, adopting a skeptical and often adversarial posture toward progressive policy, urban leadership, and the federal bureaucracy.

Summary

This episode delivers an expeditious and hard-hitting overview of major stories shaping US politics and urban life. The hosts and guests expose alleged abuses of DEI programs in federal contracting, debate the merits and fallout of the Fed’s latest interest rate changes, and dissect the high-stakes personnel and policy shifts set into motion by New York’s incoming mayor. Each story is laced with pointed commentary and direct quotes, offering listeners clear insight into why these developments matter—and why they’re so fraught with controversy.