Minnesota's Fraud Scandal has Democrats Sweating in a State They Haven't Lost in Decades

Minnesota's Fraud Scandal has Democrats Sweating in a State They Haven't Lost in Decades

Written for: your conservative newsletter readers.

Yes. The piece runs long, and two spots read like lists: the agency roster and the run of indictments. I turned the indictments into a repeating "Same program" refrain, shrank the agency list, made the DHS rebuttal sharper, and replaced the stat-recap ending, which leaned toward the tidy AI-style closer you flagged earlier. It's about 150 words shorter.

Headline: FBI Raids Hit Minnesota Autism Providers. The Fraud Scandal Has Democrats Sweating in a State They Haven't Lost in Decades.

FBI agents smashed through the front door of a St. Louis Park business center Thursday morning. At the same time, raids were hitting other locations across the Twin Cities.

By the end of the day: 17 search warrants, four arrests and a 26-count indictment.

Six agencies took part, from the FBI and the IRS to postal inspectors and Minnesota's own fraud investigators. Their targets were Iska Inc. in St. Louis Park and Bright Horizon Therapy Center in Edina, two providers of intensive therapy for autistic children, paid for by Medicaid.

Iska collected more than $16.7 million in Medicaid autism money from 2018 to 2025. Bright Horizon took in nearly $17.7 million from 2020 to 2025. That's over $34 million between the two of them, all of it meant for kids with autism.

Minnesota's Department of Human Services put out a statement: "When we see evidence of fraud, we shut off money and refer suspected criminals to law enforcement. We are thankful to see criminals being held accountable."

That's nice to hear. Iska stayed in the Medicaid program until May 2026, and it only got kicked out during a routine paperwork check. Nobody at the state caught anything.

The autism program has turned into a magnet for fraud. Two Minnesota women were indicted in an alleged $46.6 million scheme.

Same program.

Feisal Mohamed Elmi of New Brighton was charged on October 22 in an $8.2 million scheme.

Same program.

Habiba Mohamed of Coon Rapids was charged in a $19.1 million scheme on October 29, the day of the raids.

Same program.

And it's all happening in the state that gave the country Feeding Our Future, the biggest pandemic fraud case in America: 81 people charged, 70 convicted, and about $250 million taken from a program meant to feed hungry kids. One of its ringleaders, Salim Said, got 30 years in federal prison last week.

The day after Thursday's raids, Treasury Secretary Scott Bessent and FBI Director Kash Patel were in St. Cloud announcing tougher enforcement, new financial monitoring rules and a $25 million reward program for whistleblowers who help catch more of it.

Then there's Tim Walz. Remember him? The folksy football coach who was supposed to bring some Midwestern charm to the 2024 Democratic ticket? After federal agents raided 22 child-care and day-care sites across the Twin Cities in April, Walz posted, "We catch criminals when state and federal agencies share information. Joint investigations work."

He would know. A lot of the joint investigating has been happening on his watch.

Republicans on the House Oversight Committee put out a report titled "The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota's Fraud Explosion." In January, Walz dropped his reelection bid.

That's when the fraud stopped being just a crime story and became a political problem.

Minnesota is supposed to be safe for Democrats. It hasn't voted for a Republican for president since 1972 or sent a Republican to the Senate since 2002. Two years ago, it was the home state of the Democratic nominee for vice president.

Look at the Senate race now. Democrat Peggy Flanagan spent the fraud years as Walz's lieutenant governor. She's ahead of Republican Michele Tafoya by just 1.8 points in the RealClearPolitics average. The Cook Political Report moved the race from "Likely Democratic" to "Lean Democratic." Tafoya outraised her last quarter, $4.3 million to $3.8 million. Flanagan has spent the fall answering questions about what she knew while she was Walz's number two.

In the governor's race, Democrats had to bring in Sen. Amy Klobuchar, one of the biggest names in the state, after Walz bailed.

Even NBC's Steve Kornacki has noticed. "There does seem to be a tide within the state that's working against Democrats," he said.

It's not hard to see why. Every week there's another raid, another indictment, another scheme that ran for years under a Democratic governor and a Democratic attorney general. Keith Ellison's own Medicaid fraud unit helped out on Thursday's raids, after years of Republicans accusing his office of sitting on fraud tips.

Minnesotans vote tomorrow.

The money for autistic kids was an easy target, because nobody wants to be the person questioning funding for disabled children. That's how $34 million could flow through two providers with nobody at the state asking questions until the FBI showed up with a battering ram.

Democrats are about to find out how many Minnesota voters noticed.


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