Rep. Dan Meuser Exposes Potential $1 Trillion Fraud in Minnesota Federal Programs

January 15, 2026 – Rep. Dan Meuser, R-Pa., warned Thursday that fraud investigators have uncovered a scheme involving massive abuse of federal funds in Minnesota that demands real consequences.

Appearing on “Wake Up America,” Meuser argued the alleged misconduct centered in Minneapolis demonstrates why Congress and the Trump administration need stronger oversight of spending flowing through state agencies.

“This is outrageous,” he said, describing what he called “levels of waste, abuse, and fraud” that could reach deep into major programs. Meuser pointed to Treasury Secretary Scott Bessent’s estimates, stating the scheme could amount to 10%, 15%, or even 20% of federal spending. He also cited Dr. Mehmet Oz of the Centers for Medicare & Medicaid Services (CMS), who reportedly suggested similar levels of waste in healthcare programs might reach 20%.

“At 20%, you’re talking about $1 trillion right there in potential waste of taxpayers’ money,” Meuser said. “The stakes demand accountability.”

Meuser identified Minneapolis as the epicenter of these activities, stating federal funds were allocated without adequate safeguards. “All this federal funding is going there—it’s the state’s responsibility to allocate it responsibly, and they failed miserably,” he added. He alleged officials “perhaps intentionally” directed funds to organizations that did not exist, claiming the move was designed to gain political favor with certain groups.

Meuser noted arrests tied to the local Somali community, saying: “No offense to Somalians, but it just happened to be their group that’s being arrested and is well known for extorting billions from American taxpayers.” He pledged broader scrutiny of states with unusual spending patterns over recent years, stating, “We’re zeroing in on it—and it’s not going to stop there.”

Meuser framed the push as part of a wider anti-corruption effort, emphasizing Republicans’ commitment to “draining the swamp” and bringing accountability. “We want to root out waste, abuse, and fraud,” he said, adding he is dedicating much of his next year to these issues, including consumer fraud and government funding fraud.