What's happened
President Trump has highlighted alleged public services fraud in Minnesota, claiming it could help balance the federal budget. Investigations reveal hundreds of millions lost to fraud in Minnesota, with broader estimates suggesting federal losses could reach up to $521 billion annually. Similar issues are emerging in California and Mississippi, fueling political debates on government waste.
What's behind the headline?
The political framing of federal fraud as a solution to budget deficits is overly simplistic. While fraud does represent a significant loss—estimated at up to $521 billion annually—it accounts for only a fraction of the $1.775 trillion FY2025 deficit. The difficulty in fully rooting out fraud, combined with low recovery rates, means that even aggressive enforcement will not close the budget gap. Trump's focus on blue states like Minnesota and California appears to serve a political purpose, framing these states as lax on oversight to bolster his narrative. Meanwhile, officials like Dr. Mehmet Oz highlight the scale of healthcare fraud, citing a sevenfold increase in hospice cases in Los Angeles linked to foreign gangs and bad actors, which he claims exceeds levels in Minnesota. California's governor, Gavin Newsom, counters with claims of blocking over $125 billion in fraud and arresting criminals, suggesting that efforts are ongoing but complex. The broader issue remains that fraud, while damaging, is only one piece of a much larger fiscal puzzle, and political rhetoric risks oversimplifying the challenge or misdirecting attention from systemic reforms needed to improve oversight and accountability across federal programs.
What the papers say
The Al Jazeera article provides detailed insights into the scope of federal fraud, highlighting Minnesota's involvement with hundreds of millions in losses and the broader national estimates from the GAO. It emphasizes the political use of fraud allegations by President Trump, especially targeting Democratic states. The New York Times adds context with statements from officials like Bill Essayli and Dr. Mehmet Oz, pointing to ongoing investigations in California and the scale of healthcare fraud, including foreign gangs operating in hospice care. The NY Post underscores the alarming rise in hospice fraud in Los Angeles, with Dr. Oz attributing it to foreign gangs and bad actors, and California's efforts to counteract these schemes. The articles collectively illustrate a pattern of increasing fraud investigations, political exploitation of these issues, and the complex realities of enforcement and recovery, with some officials claiming significant progress while others warn of the scale and sophistication of ongoing schemes.
How we got here
Recent investigations into federal social services programs have uncovered significant fraud, particularly in Minnesota, where charges involve hundreds of millions. President Trump has emphasized these cases to argue that reducing fraud could help address the US federal deficit, which was $1.775 trillion in FY2025. The GAO's 2024 report estimated annual federal losses to fraud between $233 billion and $521 billion, highlighting the scale of the issue. While some officials caution that not all fraud is detected or recoverable, the political narrative has intensified, especially with accusations targeting Democratic-led states like Minnesota and California.
Go deeper
Common question
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Why Is Fraud Increasing in the US and How Is Politics Playing a Role?
Recent reports reveal a surge in fraud claims across the US, with political rhetoric often highlighting these issues to support various agendas. From Minnesota to California, investigations uncover hundreds of millions lost to fraud, raising questions about the true scale of the problem and its impact on federal budgets. Curious about what's behind this rise and how politics influences these investigations? Keep reading to find out more.
More on these topics
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
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Bilal Ali "Bill" Essayli is an American lawyer and politician who is currently serving as the interim United States attorney for the Central District of California, having been appointed to the position in April 2025.
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Mehmet Cengiz Öz, known professionally as Dr. Oz, is a Turkish-American television personality, cardiothoracic surgeon, Columbia University professor, and author.
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Minnesota is a state in the Upper Midwest, Great Lakes, and northern regions of the United States. Minnesota was admitted as the 32nd U.S. state on May 11, 1858, created from the eastern half of the Minnesota Territory.