[Townhall] There has been a slew of news stories out of Minnesota detailing rampant fraud of state welfare programs, including the COVID-era "Feeding Our Future" scheme, a housing fraud scandal, and Medicaid scams.
Now, "community organizations" are preparing to play the "racism" card in response to these multiple investigations.
The letter reads:
A coalition of immigrant and minority led nonprofits, community organizations, and small businesses will hold a press conference Monday, November 17, 2025, at 11:00 a.m. at the Minnesota Somali Community Center (2400 Park Avenue, Minneapolis, MN 55404) to address what they describe as harmful, politically motivated actions by state agencies and media narratives that are disproportionately targeting minority-led service providers.
The state agencies like Minnesota Department of Human Services (DHS) has implemented an expanded “prepayment review” process for 14 Medicaid-funded services many of which are primarily delivered by immigrant and minority owned agencies. Claims are now reviewed by Optum before payment, allowing delays of up to 90 days, even when no fraud or wrongdoing has been found.
These services including adult companion care, Community First Services and Supports (CFSS), nonemergency medical transportation, and others are vital to seniors, people with disabilities, and vulnerable families. Community based organizations and providers report sudden payment holds, severe cash-flow crises, and a lack of transparency and due process. Many say they feel criminalized and intentionally targeted while simply serving high-need populations.
Leaders across the community argue that minority run providers are being used as “red meat” for political points, creating fear, instability, and the potential closure of trusted grassroots organizations.
Monday’s press conference will feature impacted providers, advocates, and families sharing firsthand how these delays and heightened scrutiny threaten critical services across Minnesota.
On September 20, the 56th person pleaded guilty to his role in the "Feeding Our Future" scam. That group, many of them from the large Somali community in and around Minneapolis, stole hundreds of millions of dollars meant to feed children during the pandemic.
This writer did some digging online and was unable to find any coverage of the scheduled press conference or confirmation that it had actually taken place as of Monday afternoon. The Somali Community Facebook page hasn't posted anything since November 4.
Between 2021 and the start of 2025, Minnesota's Housing Stability Services Program paid out over $320 million, even though the program's annual cost was budgeted at $2.6 million. The state also paused Medicaid payments to 14 providers and programs because of suspected fraud. The Minnesota Star Tribune reports that the audit alone will cost $2.3 million, but it does not report on the suspected dollar amount of fraud. According to one U.S. Attorney, however, Minnesota may have lost $1 billion to fraud.
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