As the details of Minnesota’s massive social services fraud surfaced on social media over the Christmas holidays, it was hard to miss the contrast between the response from Republicans and Democrats. While Republicans were outraged, Democrats minimized and denied the existence of the problem.
With every new revelation of systemic fraud against American taxpayers, we see a common denominator. In the pursuit of progressive political goals, fraud protections have been purposefully circumvented. Whether by incompetence or design, Democratic policies have turned the federal treasury into a piggy bank for fraudsters.
American taxpayers have always been a big target. But the industrial scale of fraud uncovered in the past year is driven by programs seemingly designed with glaring vulnerabilities and seemingly designed for exploitation.
The scale of the theft is staggering. Minnesota’s Medicaid and social services programs under Democratic Gov. Tim Walz have had an estimated $9 billion or more stolen — possibly half of the $18 billion that has been administered. Politicians waived audits, ignored whistleblowers, and relaxed verification rules in favor of stock-based distributions, effectively inviting out-of-state “fraud tourists” to set up shell companies.
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The government of Minnesota Democrat Tim Walz is struggling with enormous corruption problems. (CHARLY TRIBALLEAU/AFP via Getty Images)
Minnesota’s Feeding Our Future scam alone saw $250 million disappear into bogus meal programs for nonexistent children, laundering money abroad or spending it on luxury items. That’s one state.
At the federal level, the $1.9 trillion COVID-19 relief under former President Joe Biden’s American Rescue Plan encouraged fraud to obscene levels, with an estimated $420 billion in waste, fraud and improper payments — far more than initial Trump-era spending. Programs like expanded unemployment insurance and PPP loans saw billions claimed by dead people, duplicate filers or bogus companies, thanks to waived identity verifications and rushed rollouts that were framed as equity measures for urban and minority voters.
Democrats in Congress rejected Republicans’ proposed safeguards, arguing they would delay aid to those in need — essentially creating a trillion-dollar honeypot that would attract global fraudsters.
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Nowhere is the Democratic playbook for encouraging fraud more evident than in the Biden-Harris administration’s immigration and border policies, which dismantled key safeguards and turned the asylum system into a magnet for false claims and criminal exploitation.
By rolling back Trump-era measures like the Remain in Mexico policy and expanding catch-and-release practices, Democrats have effectively minimized vetting requirements, allowing millions of people to enter without any checks — often just a notice that appeared years later amid massive backlogs. This created a perverse incentive: Economic migrants and cartels could game the system with false persecution stories, knowing that weak credible fear standards and the forgoing of biometric checks would accelerate their release to the US, where they could work illegally or disappear.
The result? Asylum grant rates fell from 51% in early 2024 to 19% in August 2025 as fraud overwhelmed the courts, with critics pointing to intentional design flaws that prioritized quick access over security to appease progressive bases and expand potential voter demographics.
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Democrats seem to view fraud as the cost of doing business. As Minnesota Democratic state Rep. Steve Elkins explained at a 2025 hearing on fraud prevention, “It’s literally impossible to completely eliminate all fraud unless you spend more money rooting out the fraud than the fraud that’s happening. … I don’t want us to create the expectation that it’s possible to not commit fraud in these types of programs.”
While corruption and waste have long been bipartisan sins in Washington, the sheer scale and innovation of the looting under Democratic leadership — especially in the post-2020 era — stands out as unprecedented.
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Democrats in Congress rejected Republicans’ proposed safeguards, arguing they would delay aid to those in need — essentially creating a trillion-dollar honeypot that would attract global fraudsters.
Walz’s government ignored whistleblowers and resisted reforms, turning what should have been targeted aid into an open invitation to organized crime — much of it tied to immigrant networks that form key Democratic voting blocs. This “innovation” in fraud facilitation has extended beyond COVID and tainted autism services and home care billing, with new charges still emerging. It’s no coincidence that Walz avoided re-election amid the fallout; the real culprits are the policymakers who built a system so lax it was practically begging to be plundered.
The Republicans are not blameless, but the data shows that this was not “both sides” equally: Democratic-led expansions of welfare, aid, and fundraising created loopholes on a scale that dwarfs historical precedents.
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The innovation here is in scale and design: Democratic policies weaponize left-wing priorities like equality and speed to create exploitable systems, looting trillions while building voter loyalty through out-of-control spending. Broader analyses, including OIG reports and Heritage databases, show that fraud increases with Democratic expansions of welfare and aid, and not equally across parties.
The real culprits are not just the fraudsters; they are the architects in Washington who built these waste machines. As DOGE dismantled fraudulent networks and recovered funds, the lesson was clear: real reform means designing systems that are fraud-proof from the start, not as an afterthought. Until then, the treasury remains a target – not for both sides equally, but for those who devise innovative ways to loot it under the guise of good intentions.
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