Dep. WH COS Miller Blasts Minnesota Welfare Scheme As Historic Fraud, Dr. Oz Launches Investigation

White House Deputy Chief of Staff for policy Stephen Miller said the massive Minnesota welfare fraud case amounts to “the single greatest theft of taxpayer dollars through welfare fraud in American history,” describing the scandal as a political earthquake for the state.

Miller, who also advises President Trump on homeland security matters, said the scheme, allegedly run by numerous Somali migrants, “will rock the core of Minnesota politics and American politics.”

“We believe that we have only scratched the very top of the surface of how deep this goes,” he told Sean Hannity on Fox News Friday.

Dr. Mehmet Oz, who leads the Centers for Medicaid and Medicare Services, moved quickly to launch a federal health-fraud probe tied to the widening scandal. Oz warned that Minnesota could lose federal support if Gov. Tim Walz’s administration does not impose strict corrections.

“Either fix this in 60 days or start looking under your couch for spare change, because we’re done footing the bill for your incompetence!” Oz said.
“Why didn’t Walz stop them? That’s simple: because he went all-in on identity politics.”
“Based on what we know now, this is a clear dereliction of duty.”

Officials said Walz’s entire administration is now under heightened scrutiny. They cited explosive growth in certain state programs: “The housing program was supposed to cost $2.6 million dollars annually. Last year, it paid out over $100 million. The autism program ballooned from $3 million in 2018 to nearly $400 million in 2023.”

CMS ordered Minnesota to:

1. Provide weekly updates on anti-fraud efforts.

2. Freeze enrollment of high-risk providers for six months.

3. Verify all existing providers or remove them.

4. Submit a corrective action plan outlining long-term prevention.

Federal prosecutors have already charged nearly 80 people in the scheme, which centered on a pandemic-era food program. Fifty-nine have been convicted so far, with authorities saying the fraud totaled $1 billion.

Investigators say the scam targeted programs intended to feed children during COVID, with the nonprofit Feeding Our Future accused of submitting fabricated meal counts and invoices to obtain federal reimbursements. Officials previously estimated the fraud at $250 million, but later investigations pushed that figure dramatically higher.

Then–US Attorney Andrew Luger said at the time: “Their goal was to make as much money for themselves as they could while falsely claiming to feed children during the pandemic.”

The state probe has expanded as Washington demands answers about how so many programs became vulnerable. Small Business Secretary Kelly Loeffler ordered a review of pandemic Paycheck Protection Program loans, while Treasury Secretary Scott Bessent is examining whether any state funds were diverted to al-Shabaab, a designated terrorist organization.

Minnesota GOP floor leader Harry Niska told The Post that political pressure on Walz is only intensifying. “The scrutiny is intense and it’s going to get more intense and I think he realizes that,” he said.

“He’s never gotten this level of scrutiny — he’s definitely going to continue to get skepticism from the administration, from Congress and I expect that is only going to intensify.”

The scandal has also prompted renewed immigration debates. ICE officials recently detained a Somali migrant convicted in the fraud conspiracy. President Trump, reacting to the ongoing revelations, sharply criticized Somali migrants during a cabinet meeting, saying: “They contribute nothing. I don’t want them in our country. Their country is no good for a reason. Your country stinks and we don’t want them in our country.”

Minnesota’s Somali community numbers roughly 80,000 people, including Rep. Ilhan Omar (D-Minn.). The Post reported she has been photographed with Abul Dahir Ibrahim, an alleged fraudster long subject to removal orders and known to law enforcement.

The scandal first surfaced publicly in 2022, when prosecutors labeled it the “largest pandemic fraud in the United States.” Since then, expanding investigations have revealed broader issues across multiple programs that relied on state oversight while drawing federal funds.