MINNESOTA – Rep. Ilhan Omar is sticking by a law she helped move through Congress, even as federal prosecutors filed charges against six more people in a widening fraud case. Investigators say the scheme siphoned public funds meant to help families in need.
The story first drew national attention through the Feeding Our Future case. In that case, a Minnesota nonprofit was accused of taking about $250 million from a federal child nutrition program. Since then, the federal probe has expanded into other areas, including housing support and autism-related services.
New Charges and Claims of “Fraud Tourists”
On Thursday, federal prosecutors charged six people they say stole more than $11 million. Two of the defendants are men from Philadelphia. Prosecutors say they came to Minnesota after hearing the state’s aid programs were “easy money.”
Assistant U.S. Attorney Joe Thompson described the case as “industrial-scale fraud.” He said some suspects spent stolen funds on high-end purchases, such as a semi-truck and international travel, instead of helping the families they said they served.
Ilhan Omar Stands by the MEALS Act
The growing scandal has kept attention on the MEALS Act, a 2020 law co-authored by Omar. The law aimed to help schools and nonprofits feed kids during the COVID-19 shutdowns. It did that by easing certain requirements so meals could get out faster.
Critics say that loosening rules removed key safeguards. They argue that it made it easier for criminals to submit fake claims for millions of meals that were never provided. Omar’s political opponents have pointed to the law as proof that the system didn’t have enough oversight to protect taxpayer money.
Omar defended the program this week. She said it provided needed help during a national emergency. She also said the fraud is “reprehensible,” but the program still kept many children from going hungry.
“A lot of the COVID programs were set up so quickly that the guardrails did not get created,” Omar said.
She added that the goal was to help people during a crisis. She also said she was among the first to urge the U.S. Department of Agriculture to investigate once signs of fraud surfaced.
Governor Walz Pushes Back on Criticism
Gov. Tim Walz has also faced scrutiny. Federal prosecutors have criticized state agencies, saying they failed to catch problems sooner and let losses grow.
Walz rejects claims that his administration did something wrong. He says the state acted as soon as it could. Walz has said Minnesota tried to stop payments to Feeding Our Future in 2021, but a court order slowed the effort. He also said the FBI asked the state not to interfere because agents were running an undercover investigation.
“This infuriating greed and criminal activity is why we took action,” Walz said after the latest round of charges. He said the state has since shut down certain programs and hired outside auditors to identify more “bad actors.”
A Breakdown of the Fraud Scandal
The table below summarizes the investigations as of late 2025:
| Program | Estimated Loss | People Charged |
|---|---|---|
| Feeding Our Future (Food) | $250 Million | 78+ |
| Medicaid (Autism & Housing) | $11.6 Million (Recent) | 6 (New) |
| Total Suspected Fraud | Billions (Estimated) | 90+ |
Tension Grows Between State Leaders and Federal Prosecutors
The relationship between the governor’s office and federal prosecutors has grown more strained. Thompson has suggested that fraud across Minnesota’s social services programs could add up to the billions. Walz has called those numbers “sensationalism.”
Walz says federal officials are making broad claims without giving the state enough evidence to stop certain payments in real time. The conflict has also become a bigger political issue because many of the people charged are part of Minnesota’s Somali-American community. Omar and Walz have both spoken out against broader attacks on that community.
As cases move toward trials in 2026, attention remains on how much money authorities can recover. So far, investigators have found only a small share of the missing funds. Much of it, they say, went to luxury cars, real estate, and investments overseas.
