Inside Minnesota’s Billion-Dollar Welfare Fraud Pipeline // Eric Eggers x Chanel Rion

Eric Eggers joins Chanel Rion (Nov. 24, 2025) to break down a stunning fraud scandal inside Minnesota’s welfare system, where billions in taxpayer funds meant for housing, autism care, and medical support were siphoned off through fraudulent claims and funneled through hawala networks with reported ties to al-Shabab. Eggers explains how weak oversight, perverse federal incentives, and Obama-era “categorical eligibility” opened the door for widespread Medicaid and EBT abuse—not only in Somali networks but nationally. He warns that the explosive growth of Minnesota’s Housing Stabilization Services program mirrors past fraud patterns in food programs and COVID-era expansions. Eggers argues real reform requires more investigators, better verification, and reversing incentives that punish states for honestly reporting fraud.

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