Federal agents raid Minneapolis sites in connection with fraud investigation
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Federal authorities carried out multiple raids across the Twin Cities on Tuesday morning as part of ongoing investigations into fraud targeting state programs.
What we know: The Department of Homeland Security said on X that its investigations division partnered with law enforcement to execute "criminal search warrants in Minneapolis relating to the rampant fraud of U.S. taxpayers' dollars."
- An FBI spokesperson told the Star Tribune that 22 search warrants were executed.
The latest: The White House's rapid-response account on X said the raids targeted daycare centers suspected of fraud.
- At least two centers featured in a viral video from conservative influencer Nick Shirley, Mako Childcare Center and Quality Learning Center, were among those raided, KSTP reported.
- Five warrants were also served at centers operating in connection with an autism therapy program that's come under scrutiny, state Attorney General Keith Ellison's office said.
Gov. Tim Walz's office said the raids followed reports from two state agencies that "caught irregular behavior," and that state and local law enforcement are involved.
- "If you commit fraud in Minnesota, you're going to get caught — and that's exactly what we saw today," Walz said in a statement.
- "We catch criminals when state and federal agencies share information. Joint investigations work, and securing justice depends on it."
The big picture: Minnesota has grappled for years with fraud involving Medicaid-funded and other social service programs.
- New evidence about the scope of the problem, along with Shirley's video, brought renewed attention to the issue late last year.
The response: The added scrutiny has prompted new state safeguards, as well as payment freezes and reviews on both the state and federal levels.
- One housing program was scrapped entirely over concerns that fraudulent reimbursement requests were driving massive growth in spending.
The other side: "The legacy of Tim Walz is a legacy of fraud," said state Senate GOP Leader Mark Johnson in a statement after Tuesday's raids.
- "Minnesotans deserve better," Johnson added. "Instead of results, we've seen billions in federal and state dollars funneled into programs plagued by waste, mismanagement, and outright fraud."
- "I'm thankful that federal law enforcement has stepped in to do what Minnesota Democrats wouldn't," GOP House Speaker Lisa Demuth said in a statement.
Friction point: A wave of resignations at the Minnesota U.S. Attorney's Office has raised questions about its ability to handle new fraud cases.
- A Star Tribune investigation in February found nearly half of the office's lawyers had quit or retired since Trump's second inauguration.
- Among them was Joe Thompson, the prosecutor who oversaw the office's fraud investigations.
What we're watching: Lawmakers at Minnesota's narrowly divided Capitol are considering another slate of anti-fraud proposals this year.
Editor's note: This is a developing story. Check back for further updates.