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Minnesota House Votes to End Housing Program Involved in Fraud Scheme

Minnesota House Votes to End Housing Program Involved in Fraud Scheme

The measure needs to pass the Minnesota Senate, but it seems both parties are taking the situation seriously.

The Minnesota House passed a bill to end the state’s Housing Stabilization Services (HSS) Medicaid benefit, which has been the face of fraud schemes originating in the state.

“We are attempting to have this program removed from statute so that when it’s time for this program to come back, it can be done so with the Legislature as the driving force behind that,” explained Rep. Joe Schomacker, the Republican co-chair of the chamber’s human services committee, according to CBS News.

The Minnesota Senate needs to pass the bill.

However, the upper chamber has worked on a similar bill.

Gov. Tim Walz has attempted to appear shocked and stunned by the massive fraud in his state, even suggesting an overhaul of Minnesota’s Department of Human Services.

The Minnesota Staff Fraud Reporting Community has been at the forefront of the exposure, placing the blame squarely on Walz:

Tim Walz is 100% responsible for massive fraud in Minnesota. We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud but no, we got the opposite response. Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports. Instead of partnership, we got the full weight of retaliation by Tim Walz, certain DFL members and an indifferent mainstream media. It’s scary, isolating and left us wondering who we can turn to.

In addition to retaliating against whistleblower, Tim Walz disempowered the Office of the Legislative Auditor, allowing agencies to disregard their audit findings and guidance. Media and politicians supporting Tim Walz or the DFL-agenda attacked whistleblowers who were trying to raise red flags on fraudulent activities.

In November, City Journal spelled out the fraud within HSS since its birth in 2020 to combat homelessness:

Costs quickly spiraled out of control. In 2021, the program paid out more than $21 million in claims. In the following years, annual costs shot up to $42 million, then $74 million, then $104 million. During the first six months of 2025, payouts totaled $61 million.

On August 1, Minnesota’s Department of Human Services moved to scrap the HSS program, noting that payment to 77 housing-stabilization providers had been terminated this year due to “credible allegations of fraud.” Joe Thompson, then the Acting U.S. Attorney for the District of Minnesota, went even further, stating that the “vast majority” of the HSS program was fraudulent.

On September 18, Thompson announced criminal indictments for HSS fraud against Moktar Hassan Aden, Mustafa Dayib Ali, Khalid Ahmed Dayib, Abdifitah Mohamud Mohamed, Christopher Adesoji Falade, Emmanuel Oluwademilade Falade, Asad Ahmed Adow, and Anwar Ahmed Adow—six of whom, according a U.S. Attorney’s Office spokesperson, are members of Minnesota’s Somali community. Thompson made clear that this is just the first round of charges for HSS fraud that his office will be prosecuting.

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Comments

That thing Walz does with his lips makes him resemble a toilet seat.

Did they end it or just rename it like they did for DEI

“‘We are attempting to have this program removed from statute so that when it’s time for this program to come back, it can be done so with the Legislature as the driving force behind that,’ explained Rep. Joe Schomacker, the Republican co-chair of the chamber’s human services committee, according to CBS News.”

It’s sad that there is no REAL courage to do the right thing here, and that is to PERMANENTLY END the program.

The only way to eliminate fraud in government programs is to END them.

destroycommunism | March 17, 2026 at 6:36 pm

they are not taking “it” ,,the fraud, seriously

they are taking the djt potus doj seriously

the demrino consortium can only be stopped by the people

and the people are too afraid of the blmplo low IQ solutions to everything which is violence

We were this||close to having this corrupt mental midget as our vice president.

We are so fortunate that didn’t happen.

Minnesota is only one small part.

The core problem is very simple.

Democrats wanted illegals on every government handout program. Illegals were NOT eligible for these programs.

So Democrats systematically removed every check and balance that verified applicants for benefits were actual US citizens eligible for benefits.

So when you remove every check and balance that’s supposed to determine if they are eligible, OF COURSE fraud skyrockets.

California is next level fraud. I don’t know if you saw the story a couple weeks ago about how literally 80% of total payments from (I think it was hospice?) were going to LA County. 80% of the ENTIRE COUNTRY.

That’s fraud without even having to look.

The biggest fraud in Minnesota is Walz. They should 86 him to quote a former FBI director.

How does someone look at a guy like Walz, understand that he’s obviously insane and incredibly stupid, and then decide to vote for him?

    DaveGinOly in reply to Aarradin. | March 17, 2026 at 10:55 pm

    Sometimes, it is easy to judge a book by its cover.

    diver64 in reply to Aarradin. | March 18, 2026 at 5:30 am

    I doubt Walz is insane but he does epitomize the leadership of the Democratic Party in that he failed upwards while being incredibly stupid, corrupt or incompetent. Often all 3 at the same time. Why is everyone focusing on Walz and not Malcom X Ellis who was supposed to be in charge of investigating and prosecuting this fraud? Oh, yeah. He is a black muslim so untouchable

Is there anyone in the “Somali Community” not defrauding at least one program? Are there any programs that are under control. Whoever was involved in running, approving payments and monitoring recipients of taxpayer money should be in prison.

The “face of fraud”? Does this address the multitude of other welfare scams in Minnesota and across country? The “Learing” centers? Adult daycare, hospice, and all the other scams to numerous to mention? Fraud should not be among the reasons this country is the land of opportunity but it seems to have become the primary attraction,

SeekingRationalThought | March 18, 2026 at 8:16 am

So the DFL careerists decided that they’d made enough money off this scam. I hope they have another scam in place. If they have to engage in productive labor, they would starve.

What does DFL stand for? I didn’t find it in the rticle.

pablo panadero | March 18, 2026 at 11:04 am

As Powerline blog noted, it is extraordinary that any government program is shuttered, so it should be interpreted as an attempt to hide evidence. Most likely the program was set up to be an enabler of fraudulent actions.