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Senate pressure mounts as Minnesota fraud scandal continues to unfold

Sen. Banks urges probe into alleged $9 billion fraud by fake daycares exploiting federal subsidies in Minnesota's Child Care Assistance Program, amid whistleblower retaliation claims.

  • On Sunday, Senator Jim Banks, R-Ind., urged Alex J. Adams, Assistant Secretary for Family Support, Administration for Children and Families , to probe reports of Somali networks amid a potential $9 billion fraud.
  • Investigations tied to the roughly $9 billion fraud scandal in Minnesota found roughly $250 million in false claims and charged 78 people, with prosecutors suspecting significant theft of taxpayer funds.
  • On Monday, Homeland Security Investigations and ICE agents were on the ground in Minnesota as federal prosecutors charged 98 people, and more than 400 employees alleged Governor Tim Walz ignored warnings and allowed whistleblower retaliation.
  • Representative Tom Emmer called for legal changes and urged investigation into Somali networks, stating `Our nation will not tolerate those who take advantage of our charity and refuse to assimilate into our culture`.
  • Banks warned that CCAP relies on federal tax dollars supplying roughly $300 million, while FBI Director Kash Patel said the agency `surged personnel and investigative resources to Minnesota` to dismantle large-scale fraud schemes.
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Hot Air broke the news in Arlington, United States on Monday, December 29, 2025.
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