WASHINGTON, D.C. – A former Minnesota Department of Human Services (DHS) employee says she paid a steep price for speaking up. Faye Bernstein, a long-time agency worker, claims she faced years of retaliation from Tim Walz after raising concerns about weak controls that she believes helped fuel Minnesota’s growing social services fraud crisis.

Bernstein says she warned leaders about risks in 2018 and 2019, before federal prosecutors began putting public numbers on the damage. Prosecutors now estimate that as much as $9 billion in taxpayer money may have been stolen since 2019 across multiple programs.

A 20-year DHS veteran who worked in contract management and compliance, Bernstein has shared her story on national TV, including Fox News. She says that after she reported irregular contracting practices, she became the target of what she calls a coordinated effort to discredit her.

Her claims come as federal investigators continue to probe fraud tied to child nutrition programs, Medicaid housing supports, autism services, and other benefits. Prosecutors say many of these cases involve networks concentrated in Minnesota’s Somali-American community.

The controversy has reached Congress. The U.S. House Oversight Committee has held hearings where state lawmakers accused Gov. Tim Walz’s administration of brushing off warnings, punishing whistleblowers, and failing to put strong safeguards in place. Bernstein has also pushed back on Walz’s public statements that he didn’t know about the problems, calling that claim “absolutely false.”

Warnings Met With Pushback

Bernstein says her problems started early in Tim Walz’s term, which began in 2019. After she was promoted to a lead role within the Behavioral Health Administration, she says she had a broader view of contracts across the agency.

What she saw worried her. Bernstein described contracting as sloppy and poorly controlled, with few clear checks to stop bad actors. She said the state was “completely open to fraud.”

“I saw just extreme sloppiness, messiness in our contracting processes,” Bernstein said in interviews. She says she raised the issue internally and warned that fraud would follow if DHS didn’t tighten its systems. She says her concerns weren’t welcomed.

Bernstein claims managers cut her duties, left her out of meetings, and treated her complaints as a problem. She says she was accused of racial bias when she brought up patterns she believed were tied to fraud.

“The smear campaign starts where you are told you are racist and your job duties are lessened till you basically have no job duties,” she said.

Bernstein says DHS later barred her from agency properties, revoked her credentials, and moved her into roles that had little real work. She also says she endured state investigations that were expensive and draining. In letters and interviews, she describes ongoing harassment and being pushed to the sidelines. She now warns that reporting fraud without anonymity can ruin a career.

Prosecutors Say the Losses Reach Into the Billions

Federal authorities, including the U.S. Attorney’s Office in Minnesota, have charged close to 100 people in related cases. Dozens have already been convicted.

The best-known case centers on Feeding Our Future. Prosecutors say the nonprofit submitted false claims about feeding children during the COVID-19 pandemic and took at least $250 million. Investigators say large sums went to luxury purchases, real estate, and transfers abroad.

From there, investigations widened. Authorities began focusing on Medicaid-linked fraud tied to housing supports, autism therapy, and other services. In public reporting and testimony, estimates have climbed as high as $9 billion or more since 2018, spread across 14 programs flagged as high risk.

Prosecutors say a large share of defendants in major cases, often reported as about 85% to 90%, are of Somali descent. Walz and some community leaders have pushed back against broad claims about the community, arguing that sweeping labels are unfair and inflammatory.

The fraud has been described as among the largest U.S. cases tied to pandemic-era relief. Some allegations also point to overseas links, including concerns about connections to groups such as Al-Shabaab, though those claims are still being investigated.

Political Pressure and Demands for Answers

The fallout has been intense and partisan. Republican lawmakers and some federal officials have blamed Walz and Attorney General Keith Ellison for what they describe as an overly trusting culture that made the scams easier to pull off. Whistleblowers, including Bernstein, have given testimony or statements to Congress describing ignored reports and a hostile work environment at DHS.

Bernstein’s story also fits a broader pattern raised by other employees. Several workers have claimed their warnings were dismissed, or they faced punishment after speaking up. A congressional document has described allegations that include electronic monitoring and threats of being shut out of future state jobs.

Tim Walz’s administration has disputed the $9 billion estimate and says it has taken steps to fight fraud, including forming task forces. Critics say those efforts came late and only after insiders had sounded the alarm for years.

Bernstein Keeps Speaking Out

Bernstein says the cost has been lasting, including damage to her reputation, isolation at work, and ongoing stress. Still, she continues to speak publicly. Her account points to deeper breakdowns inside DHS that, in her view, allowed fraud to spread and grow unchecked.

As federal investigations continue through subpoenas, searches, and more convictions, Bernstein’s experience highlights the risks whistleblowers say they face inside government agencies. For Minnesota taxpayers, the scandal isn’t only about the money. It’s also about trust in programs meant to protect people who need help.

The full scope of the fraud, and who should be held responsible for missing or ignoring warnings, is still coming into view. Bernstein’s claims have kept attention on that question, and she says she won’t stop pushing for answers.

Related News:

AG Pam Bondi Accuses Tim Walz and Frey of Protecting Violent Criminals

WASHINGTON, D.C. – President Donald Trump is expected to sign an executive order naming Vice President JD Vance as chair of a new White House anti-fraud task force, according to multiple people familiar with the plans.

The task force under JD Vance will focus on alleged welfare abuse and improper payments tied to California and several other states.

The task force has been taking shape for weeks and marks a more public phase of the administration’s campaign against fraud in federal benefit programs. Vance, a former U.S. senator from Ohio who has often criticized large safety-net programs, will lead the effort.

Federal Trade Commission Chairman Andrew Ferguson is expected to serve as vice chair and run day-to-day work, sources said.

Sources briefed on the planning told CBS News the order could be signed as soon as this week. One person described Vance’s role as a signal that the issue sits near the top of the president’s agenda, not just another routine review.

Why JD Vance is headed to California

Republicans have long pointed to California’s large public programs as a risk point for fraud. The task force is expected to look closely at Medi-Cal (California’s Medicaid program), unemployment insurance, pandemic-era relief programs, and child care subsidies.

Audits and reviews in recent years have flagged large amounts of questionable spending, including billions tied to improper claims during and after the COVID-19 period. Vance has also argued publicly that California’s fraud problem is larger than other widely covered cases, including a Minnesota welfare fraud scandal that drew national attention.

“It’s happening in states like Ohio. It’s happening in states like California,” Vance has said when talking about misuse of federal funds.

The task force plans to examine how federal dollars move through California’s social service systems, including eligibility checks and payment controls.

The new task force follows earlier administration steps, including freezes on certain federal funds to states accused of weak oversight. While the group’s mission is nationwide, California has become a main focus. Supporters say tougher audits protect taxpayers and help benefits reach people who qualify.

California officials call it a political attack

California’s Democratic leaders quickly pushed back. State Attorney General Rob Bonta spoke Thursday in Los Angeles, calling the administration’s claims reckless and politically driven.

Bonta said California has been active in fraud cases and has recovered nearly $2.7 billion through criminal and civil actions since 2016. He cited $740 million tied to Medi-Cal matters, $2 billion recovered under the state’s False Claims Act, and $108 million connected to underground economy tax fraud investigations.

“Trump is out there falsely claiming that California is somehow the problem, baselessly claiming that California programs and public servants are perpetrating fraud, when in reality we are the victim of fraud,” Bonta said.

He added that fraud schemes hit states of all political stripes, including Republican-led Texas and Florida, along with Ohio. Bonta also took a shot at Vance’s role, saying the vice president should look closer to home instead of leading what he called an unnecessary political stunt aimed at California.

Concerns about the impact on people who rely on aid

State officials and advocates worry a high-profile federal crackdown could disrupt legitimate benefits, scare off eligible families, or be used to justify bigger policy changes aimed at Democratic-led states. Critics also point to the administration’s past pardons in fraud cases and argue that it undercuts the message of strict enforcement.

The announcement lands in the middle of ongoing tension between the Trump administration and blue states, especially California. Trump has targeted the state on immigration, environmental rules, and other issues, and the new task force fits that pattern of using executive power to increase scrutiny of state-run programs paid for in part with federal funds.

Supporters, including conservative commentators and some budget watchdogs, say the move is overdue. They argue that rising debt and pressure on entitlement spending make tighter controls necessary. They also say putting Vance and Ferguson in visible roles gives the effort more weight than a typical inspector general review.

Skeptics warn that aggressive investigations can create new paperwork hurdles and lead to mistaken benefit cuts, which often hit low-income residents hardest.

As the executive order details roll out, the task force is expected to coordinate with federal agencies that oversee key programs, including the Department of Health and Human Services, the Small Business Administration, and others.

Whether the task force uncovers widespread abuse or runs into court fights is still unknown. For now, the move has revived a familiar argument in American politics: how to balance fraud enforcement, program access, and the federal government’s role in overseeing state-run benefits.

With Vance in the lead role, the effort also puts the vice president front and center on one of the White House’s main domestic priorities, a position that could raise his profile inside the administration and beyond.

Trending News:

Trump Says Iran Should Be Worried U.S. ‘Prepared’ for Iranian Military Action

WASHINGTON, D.C. – President Donald Trump used a Fox News interview to send a direct warning to Tehran: the United States is ready to answer any Iranian military move. His comments come during a stretch of rising friction in the region, with nuclear talks in Oman only days away. The moment highlights how close diplomacy and conflict now sit.

Fox News correspondent Benjamin Hall discussed the growing U.S.-Iran standoff. Trump said the U.S. is “prepared” if Iran takes military action.  He framed that posture around efforts to block Tehran’s nuclear progress and limit Iran’s reach across the region.

The remarks arrive as reports mount of dangerous encounters at sea, including Iranian gunboats trying to board a U.S. oil tanker and U.S. forces intercepting drones.

What’s driving the latest spike in U.S.-Iran tensions

U.S.-Iran relations have slid fast since Trump returned to office, building on years of disputes over Iran’s nuclear program, proxy groups, and ballistic missiles. The temperature climbed last June after U.S. strikes hit Iranian nuclear sites, following Israel’s 12-day campaign against Iran. Iran’s crackdown on protests after that only added fuel to the cycle.

In recent weeks, Iranian vessels have pressed commercial traffic near the Strait of Hormuz. At the same time, U.S. warships have stepped in to stop threats in the Persian Gulf and the Arabian Sea.

Trump has kept up pressure in public, saying Iran must stop moving its nuclear work forward and cut support for groups such as Hezbollah and the Houthis. In one exchange, he pointed to “very big, powerful ships” positioned near Iran. He said he wants diplomacy to work, but won’t hesitate if it fails.

The strategy resembles Trump’s first-term “maximum pressure” approach, but officials now describe it as more urgent. The administration says any agreement must cover nuclear limits, missiles, and proxy networks. Iran has rejected that broader package.

Oman talks: narrow agenda, high stakes

Even with the threats, both sides are still talking. U.S. and Iranian officials are scheduled to meet on Friday in Muscat, Oman. The talks are expected to focus on Iran’s nuclear program and possible sanctions relief.

The meeting location shifted from Istanbul to Oman at Iran’s request. That move also narrowed the agenda to nuclear issues, leaving out wider regional security topics that Washington has pushed.

U.S. envoy Steve Witkoff is expected to attend, and Jared Kushner may also be involved. They are set to meet Iranian Foreign Minister Abbas Araghchi. Oman has played go-between for years and has hosted past indirect talks.

Trump has said Iran is “seriously talking” with the U.S., but many remain doubtful. Secretary of State Marco Rubio has said progress depends on Iran accepting limits on missiles and proxy ties. Iranian officials say they will only discuss the nuclear file, and only “on an equal footing.”

Trump has also tied the talks to the risk of force, warning that if talks fail, future strikes could be “far worse” than earlier action.

Iran’s playbook: proxies, missiles, and pressure points

Iran often relies on indirect power rather than head-to-head fights. Analysts describe a layered plan meant to raise the cost of any attack. That includes large waves of ballistic missiles and drones, plus proxy activity tied to the “Axis of Resistance” in Lebanon, Yemen, Iraq, and Syria.

Tehran also holds a major economic threat over the region: disruption in the Strait of Hormuz. Iranian officials have said they would respond “with everything we have” if attacked. They have pointed to options like cyberattacks and interference with shipping.

Still, the past year has exposed weaknesses, including gaps revealed during last year’s strikes. That has sparked internal debate inside Iran about whether a more flexible approach could reduce risk. Other voices argue the opposite, that only the threat of a long conflict can hold the U.S. back.

U.S. naval buildup near Iran

The Pentagon has increased forces in the region to back up Trump’s warnings. The USS Abraham Lincoln carrier strike group is operating in the Arabian Sea, alongside guided-missile ships and aircraft such as F/A-18 Super Hornets and F-35C Lightning IIs.

Other reported assets include the USS Delbert D. Black, USS McFaul, and USS Mitscher near the Strait of Hormuz. Littoral combat ships are also operating in the Persian Gulf, with added air support from bases in Jordan and Qatar.

Satellite imagery has shown expanded activity at sites such as Muwaffaq Salti Air Base. Missile defenses, including THAAD and Patriot systems, are reinforcing protection for U.S. forces and partners. U.S. officials have described the buildup as a large force meant to deter attacks and allow a fast response if needed.

What happens next, and what could go wrong

The next few days could set the tone for months. A deal in Oman could produce a limited nuclear agreement, ease some sanctions, and cool the situation. A breakdown could bring the opposite, with small incidents turning into direct clashes.

Analysts warn the risks are real: a proxy strike could draw U.S. retaliation, or Iran could try to disrupt key shipping lanes. Either outcome could push energy prices higher and shake global markets.

Regional partners such as Saudi Arabia and the UAE could also face attacks, and Israel could be pulled deeper into the conflict. Trump has held off strikes before to leave room for talks, but his latest comments suggest little patience for what he sees as Iranian defiance.

As attention shifts to Muscat, Trump’s Fox News statement stands as both a warning and a show of resolve. The outcome could be a narrow deal or a wider crisis. The stakes include nuclear risk, regional stability, and global security.

Trending News:

Iran’s Supreme Leader Steps Up Threats as Trump Applies Pressure

Hillary Clinton Calls for Transparency, Wants Televised Congressional Hearing