Podcast Summary: Verdict with Ted Cruz

Episode: It’s a Wel-fraud Wonderland, Industrial-Scale Theft in Minnesota & GDP Boom vs. Media Gloom Week In Review
Date: December 27, 2025
Hosts: Senator Ted Cruz & Ben Ferguson

Overview

This special "Week In Review" episode dives into three critical stories the mainstream media “downplayed” over the Christmas season:

• Explosive findings on massive welfare fraud and government waste (with reference to a Wall Street Journal op-ed by Phil Graham and John Early)
• Industrial-scale Medicaid and welfare fraud in Minnesota, with billions potentially funneled away, some tied to terrorist organizations, and politicians' alleged lack of accountability
• Record-breaking GDP growth and strong consumer spending reported nationwide, with discussion of corporate media’s "gloomy" framing in contrast

Throughout the episode, Cruz and Ferguson advocate for accountability, transparency, and a conservative approach to welfare and economic policy, often critiquing Democratic leadership and mainstream press narratives.

Main Discussion Segments & Key Insights

1. The Biggest Fraud in Welfare: Nationwide, Not Just Minnesota

[03:00 – 11:39]

• Wall Street Journal Op-Ed Breakdown
  Ted Cruz highlights Phil Graham and John Early's Journal op-ed, detailing "bogus bookkeeping" in the US welfare system that keeps Americans misinformed about the true scale of government support, abuse, and incentivized dependency.

  • Economic Progress vs. Escalating Spending

    • Despite 142% real per capita GDP growth (1974-2024) and most households doing better than the top 20% in 1967, welfare spending jumped 765%—now at $1.4 trillion a year!
    • “If you just took all the welfare payments and sent a check to each household directly... more than $70,000 a year.” (Phil Graham, [06:56])

  • Counting the Real Income

    • Government doesn’t count non-cash benefits/refundable tax credits as “income,” so poverty appears worse than it is, masking the true extent of support.
    • Example: A single parent making $11,000/year could actually receive $64,128 in combined benefits—yet still be labeled ‘in poverty’.
    • “This family would qualify for benefits worth $53,128... puts the family's income at $64,128, or 254% of the poverty level.” (Phil Graham, [07:09])

  • Systemic Incentives for Fraud, Lack of Accountability

    • The system, focused on “shoveling cash out the door,” isn’t set up to detect or prevent fraud.
    • Cruz’s philosophy: “The social safety net should be a trampoline and not a hammock.” ([09:35])
    • Importance of the “dignity of work” and breaking “generational poverty.”

  • Memorable Quote, Ted Cruz ([09:58]):

    “God created mankind, I believe, to work and to be productive and to make a difference and to provide for your family. And this welfare machine that the left is so invested in traps people in dependency.”

2. Industrial-Scale Fraud in Minnesota: “Fraud Tourism,” Political Evasion, and National Risk

[15:16 – 25:50]

• The “Industrial-Scale” Medicaid/Welfare Fraud
  Ferguson and Cruz discuss recent Wall Street Journal and local CBS reporting:

  • At least $9 billion—possibly half Minnesota’s Medicaid spending since 2018—lost to fraud.
  • Federal indictments allege organized rings created fake companies and funneled money, e.g., “Anthony Jefferson and Lester Brown… had no connection to Minnesota except they heard its Housing Stabilization Services program was easy money.” (CBS reporter, [19:03])

• Fraud Not Small, Not Isolated

  • Assistant U.S. Attorney Joe Thompson:

    “The fraud is not small. It isn’t isolated. The magnitude cannot be overstated… It's a staggering industrial-scale fraud. It's swamping Minnesota and calling into question everything we know about our state.” (Phil Graham paraphrasing Thompson, [16:56])

  • Ferguson dubs this “fraud tourism”: outsiders coming to Minnesota purely to exploit loopholes.

• National Problem, Political Accountability

  • Cruz predicts this fraud model is worse in large “blue” states—calls for federal audit starting with New York, California, and Illinois.

    "As horrific as this fraud is in Minnesota... I'm going to make a prediction that it's worse... in New York, California, and Illinois." (Ted Cruz, [21:50])

  • Critique of political leadership—specifically, Minnesota Governor Tim Walz’s alleged prioritization of party over oversight.

  • Link to Terrorism:

    • Some fraudulent funds allegedly routed to Al Shabaab, a Somali terrorist network.
    • “The single largest contributor to Al Shabaab are the Minnesota taxpayers. That’s the level of the theft that went on.” (Ted Cruz, [17:55])

• Race Card & Political Deflection

  • Clip of Gov. Tim Walz holding a press conference, shifting focus to accusations of “white supremacy”—Cruz calls this formulaic deflection:

    “This is the classic Democratic playbook. Don't look at what I'm doing. I'm going to yell you’re a racist.” (Ben Ferguson, [24:39])

  • Cruz: “At some point, those talking points get a little tired and it’s a clear and transparent effort just to avoid... accountability.” ([25:00])

3. GDP ‘Boom’ vs. Media Gloom: Did the Press Suppress Good News?

[29:39 – 37:21]

• 4.3% GDP Growth—Media Downplays, Contradicts Previous Panic

  • Third quarter GDP clocked in at 4.3%, beating forecasts; strong consumer spending, record-breaking retail numbers.

  • Cruz reads Wall Street Journal highlights: "Robust spending by US consumers drove greater than expected economic expansion... strongest rate in two years."

  • “That’s big, by the way.” (Ferguson, [31:36])

  • Media contrasted: NYT predicted trouble; Cruz calls out “corporate media” for dishonesty, reading two ABC News tweets:

    • In 2024, 2.8% growth was hyped; 2025’s 4.3% is buried with “concerns.”
    • “That is not news... go work for the DNC because you want to be a partisan parrot. That’s who they are.” (Ted Cruz, [34:17])

• Policy Credit and Political Stakes

  • Cruz notes that “President Trump’s trade policy and supply side policy” have driven “investment, jobs, and booming economy.”

  • Kevin Hassett (NEC head):

    “No, it’s a fantastic report. 4.3%. That’s just about as good as GDP numbers get... these numbers are showing that President Trump's trade policy... is really working.” ([35:56])

  • Ferguson: Despite predictions of shortages and price spikes, shelves are full and prices reasonable.

  • Cruz underscores: “When you cut taxes, as we did, and when you repeal job killing regulations as President Trump is doing, it results in more investments, more jobs and the economy's booming. This... is basic cause and effect.” ([36:53])

Notable Quotes & Timestamps

• “If you just took all the welfare payments and sent a check to each household directly... more than $70,000 a year.”
  — Phil Graham ([06:56])

• “The social safety net should be a trampoline and not a hammock.”
  — Ted Cruz ([09:35])

• "The fraud is not small. It isn’t isolated. The magnitude cannot be overstated… It's a staggering industrial-scale fraud."
  — Assistant U.S. Attorney Joe Thompson (paraphrased by Cruz, [16:56])

• “As horrific as this fraud is in Minnesota... I’m going to make a prediction that it’s worse... in New York, California, and Illinois.”
  — Ted Cruz ([21:50])

• “The single largest contributor to Al Shabaab are the Minnesota taxpayers. That’s the level of the theft that went on.”
  — Ted Cruz ([17:55])

• “That is not news... go work for the DNC because you want to be a partisan parrot. That’s who they are."
  — Ted Cruz ([34:17])

Episode Structure & Timestamps

| Segment | Start Time | Highlights | |--------------------------------------------|------------|---------------------------------------------------------------| | Welfare fraud & WSJ report | 03:00 | Systemic, government-enabled fraud; miscounted benefits | | Minnesota Medicaid fraud | 15:16 | “Industrial-scale”; links to terrorism; political avoidance | | Media spin on economy, GDP growth | 29:39 | Data vs. news spin; credit to policy vs. media critique |

Memorable Moments

• Ferguson calling the system “fraud tourism” as outsiders travel to Minnesota for easy welfare money ([19:03])
• Cruz drawing direct lines from Minnesota’s fraud to global terrorism funding ([17:55])
• Local CBS report highlighting the scale and ongoing nature of the fraud investigation ([18:42])
• Clips and readings exposing the shift in tone of media economic coverage after a political transition ([33:55])

Tone and Style

Direct and assertive, with a focus on “calling out” perceived media and political bias. The hosts don’t hesitate to use hyperbole and sarcasm for emphasis (e.g., “where's Waldo,” “asleep at the switch,” “go work for the DNC”). Policy points are often illustrated with detailed numerical examples, intended to shock and mobilize listeners around calls for transparency and reform.

For Listeners Who Missed the Episode

This installment of Verdict with Ted Cruz presents a detailed, data-driven critique of welfare fraud, its implications for American taxpayers and national security, and the political/media dynamics that, in the hosts' view, enable such abuse and obscure positive economic news from the public. The tone is urgent, incredulous, and geared toward a conservative audience eager for policy accountability and integrity.

For full conversation, policy details, and additional context, listeners are directed to the complete podcast episode.