It’s just the tip of the iceberg.
Federal authorities have dramatically expanded a major fraud investigation in Minnesota after uncovering what officials say may be one of the largest abuses of taxpayer-funded programs in recent years.
FBI Director Kash Patel confirmed that the bureau has surged additional agents and investigative resources into the state as part of a long-running effort to dismantle large-scale fraud schemes targeting federal assistance programs.
According to Patel, the FBI’s move into Minnesota occurred well before recent online attention, as investigators continued building cases tied to the now-infamous Feeding Our Future investigation. That probe revealed an estimated $250 million fraud scheme involving federal food aid intended for children during the COVID-19 pandemic.
Federal prosecutors say the scope of the case is still expanding.
To date, the investigation has resulted in 78 indictments and 57 convictions, with additional charges filed in a separate case involving an alleged attempt to bribe a juror with $120,000 in cash. Authorities stress that more arrests and charges could follow.
“The FBI believes this is only the beginning,” Patel wrote in a public statement on X. “We will continue to follow the money, protect children, and hold those responsible accountable. This investigation remains very much ongoing.”
Patel also noted that some individuals connected to the case have been referred to immigration authorities for potential denaturalization or deportation proceedings, where legally applicable.
Viral Video Fuels National Attention
The investigation gained fresh momentum after an independently produced video released Friday brought widespread attention to possible irregularities involving childcare and learning facilities in Minnesota.
In the footage, several locations appeared closed or largely inactive, despite records indicating they had received millions of dollars in government funding.
The video prompted swift reactions from Republican leaders, including House Majority Whip Tom Emmer, Rep. Mike Lawler, and Vice President JD Vance.
Emmer sharply criticized Minnesota Gov. Tim Walz, accusing state leadership of failing to act while massive sums were allegedly misused.
Whistleblowers Speak Out
The controversy has also revived allegations from Minnesota state employees who say they raised internal warnings about widespread fraud months earlier.
A group calling itself Minnesota Staff Fraud Reporting Commentary—which claims to include more than 480 state staff members—has accused the governor’s office of ignoring early alerts and retaliating against whistleblowers.
In a public statement, the group alleged that instead of cooperation, employees faced intimidation, monitoring, and efforts to discredit fraud reports. The group also claimed that oversight mechanisms were weakened, allowing agencies to disregard audit findings from the Office of the Legislative Auditor.
Governor Responds as Investigation Widens
Governor Walz addressed the fraud allegations during a press conference in late November, acknowledging that fraud damages public trust and threatens programs intended to help vulnerable communities.
“If you’re committing fraud, no matter who you are, you will go to jail,” Walz said, emphasizing accountability across the board.
Meanwhile, The New York Times reported that what initially appeared to be isolated pandemic-era fraud has grown into a broader concern for both state and federal officials.
According to law enforcement sources cited by the paper, multiple fraud schemes allegedly operated over several years, involving companies that billed state agencies millions for social services that were never delivered.
Bigger Questions Remain
As federal investigators continue tracing financial trails, the expanding probe is raising serious questions about oversight, accountability, and how such large-scale fraud was allowed to persist for so long.
With additional resources now deployed and more cases still unfolding, officials say this investigation is far from finished—and more revelations may lie ahead.
