Cato Podcast Fallout From the Minnesota Fraud Scandal
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Jan 15, 2026 In this discussion, Chris Edwards, a fiscal policy expert at the Cato Institute, dives into the shocking welfare fraud scandals in Minnesota, particularly the $250 million Feeding Our Future scam. He highlights how federal funding weakens oversight and encourages fraud across multiple programs. Chris distinguishes between organized provider fraud and individual fraud, revealing insights about similar issues nationwide. He advocates for decentralizing welfare to states as a means to improve governance and reduce fraud, while also addressing the impact on private charity.
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Feeding Our Future Scam Uncovered
- Amy Bach led a scheme that set up 250 fake child feeding sites during COVID and claimed 91 million meals.
- The scam stole about $250 million before state detection and later drew FBI attention.
Cross-Program Fraud Rings
- Investigations found linked fraud across Medicaid, housing, autism, and assisted living in Minnesota.
- Some convicted individuals participated in scams against multiple programs, suggesting shared methods.
Perverse Incentives From Federal Funding
- Federal money flowing to states creates weak incentives for oversight because states treat it as 'free money.'
- That fiscal structure encourages spending and reduces state interest in preventing fraud.
