Gov. Tim Walz, D-Minn., walks near the Minnesota state capitol in St Paul on Tuesday, Oct. 7, 2025. (Abbie Parr/AP Photo)
When asked specifically by a reporter how much of that $18 billion is suspected to be fraudulent, which reports have previously suggested could be around $1 billion, Thompson suggested that number will be higher when the investigations are concluded.
"I think a significant portion," Thompson responded.
Thompson later, "When I say significant, I'm talking in the order of half or more. But we'll see."
Six new defendants have been charged in connection with a Minnesota housing services fraud, Thompson revealed on Thursday.
Two defendants pocketed $750,000 instead of helping Medicaid recipients find stable housing, Thompson said. Prosecutors allege they used the proceeds to travel to international destinations, including London, Istanbul and Dubai.
First Assistant U.S. Attorney Joe Thompson describes a sprawling fraud investigation involving state-run programs in Minnesota at a news conference Thursday, Dec. 18, 2025, in Minneapolis. (AP Newsroom)
Prosecutors also named a new defendant accused of defrauding another state-run, federally funded program that provides services for children with autism, alleging he submitted millions of dollars worth of claims for Medicaid reimbursement. One woman previously charged for exploiting that program pleaded guilty Thursday morning, officials said.
Thompson said that two of the dependents aren't from Minnesota but came from Philadelphia because "they heard that Minnesota and its housing stabilization services program was easy money."
"What we're seeing is programs that are just entirely fraudulent," Thompson said. "These aren't companies that are providing some services, but overbilling Medicare, Medicaid, these are companies that are providing essentially no services. They're essentially shell companies created to defraud the program created to submit on a wholesale level, fraudulent claims for services that aren't necessary and are provided."
In a press release, dependents were identified as Abdinajib Hassan Yussuf, Anthony Waddell Jefferson, Lester Brown, Hassan Ahmed Hussein, Ahmed Abdirashid Mohamed, and Kaamil Omar Sallah.
Minnesota's fraud crisis has been in the spotlight in recent weeks as the Trump administration and local Republicans have blasted Minnesota's elected officials over the scandal, which dates back to at least 2020 and involves fraudulent billing for a wide range of government services, mostly involving but not limited to the state's Somali community.
"When I was on the Feeding Our Future case, the big thing that jumped out to me was, honestly, how easy this fraud was to do," former federal prosecutor Joe Teirab, who worked on the fraud investigation into Feeding our Future, one of the most high-profile examples of organizations that prosecutors say was propped up by fraud, recently told Fox News Digital.
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Republican Speaker of the House Lisa Demuth speaks during a press conference in the governor's reception room at the Minnesota Capitol in St. Paul, Minnesota, on Thursday, May 15, 2025. (Jerry Holt/The Minnesota Star Tribune via Getty Images)
"I mean, these fraudsters were just saying that they were spending all this money on feeding kids, and they were just making up these PDFs, putting false names into Excel sheets. I could do that in five minutes on a computer if I had absolutely no conscience."
The Trump administration has launched a variety of efforts to crack down and investigate the fraud at a federal level and Fox News Digital first reported that Education Secretary Linda McMahon sent a letter to Walz calling on him to resign over the scandal.
"It's been allowed to go on for far too long, and we need to do whatever we can to stop it in its tracks," Thompson said in the press conference.
Associated Press contributed to this report.
Andrew Mark Miller is a reporter at Fox News. Find him on Twitter @andymarkmiller and email tips to AndrewMark.Miller@Fox.com.
https://www.foxnews.com/politics/magnitude-cannot-overstated-feds-say-minnesota-fraud-may-more-than-9b