“Minnesota fraud” is becoming a cliché and part of the American political vernacular. The total amount of fraud being uncovered throughout the welfare and assistance programs administered by the state is almost inconceivable. This MSN article exposes just the tip of the iceberg, focusing as it does on only Medicaid fraud:
Federal prosecutors alleged Thursday that Minnesota may have lost billions of dollars to fraud in its Medicaid program, the latest development in an ongoing investigation.
As much as half of the roughly $18 billion Minnesota has spent since 2018 on 14 Medicaid programs particularly vulnerable to abuse may have been siphoned off by fraudsters, according to U.S. Assistant Attorney Joe Thompson. Thompson made the remarks as prosecutors announcedadditional charges in the ongoing investigation of the “staggering, industrial-scale” fraud engulfing the state.
Many of the Minnesota fraud schemes involved organized networks, with some funds allegedly laundered or diverted overseas. Investigations have led to hundreds of charges, convictions, program shutdowns, and federal freezes on funding. The fraud was largely enabled by lax oversight initiated during rapid pandemic-era expansions that continue to the present, and ongoing probes continue to uncover more with each passing day. Authorities emphasize that total fraud may exceed billions more across interconnected programs.
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Check out what the US Treasury Dept is doing to “combat the billions of dollars in rampant government benefits fraud in Minnesota” here. An excerpt:
Secretary Bessent announced that Treasury has issued notices of investigation to multiple money services businesses operating in Minnesota, implemented a Geographic Targeting Order requiring enhanced reporting of certain international transactions which can accelerate prosecutions and the recovery of laundered funds, released an alert to financial institutions regarding fraud in federal child nutrition programs, and held a specialized training session for law enforcement to improve the use of financial data in fraud investigations. Additionally, the IRS initiated audits of financial institutions suspected of laundering fraud proceeds and announced the creation of a task force to investigate misuse of pandemic-era tax incentives and 501(c)(3) status.
Again, the $9 billion of Medicaid fraud is from just one program! Never mind the other shocking reports about massive fraud in daycare centers, SNAP, child nutrition, housing stabilization, and autism services programs.
A sum that large is simply unimaginable for most people. We’ve been desensitized to these vast numbers, especially in recent years, what with “trillion-dollar federal budget deficits” and all. I mean, how many people even know what a million dollars is, let alone $9 billion?
Thankfully, the South Dakota Constitution mandates balanced budgets (no deficit spending; eat your heart out, Californians!). In a small state like ours (less than 1 million people total), the state government fights over nickels and dimes in annual state budget deliberations as compared to much larger budgets in other states in the union. For example, this year, the SD education lobby is up in arms because the governor has proposed essentially flat spending levels for education (0% growth as opposed to the recent 6-7% increases made easier by all the COVID slush funding that funded other programs). But the argument is for a few tens of millions (probably not more than $25 million TBD). For context, that number is just under 3 tenths of a percent of that $9 billion fraud number. Peanuts!
For more context and comparison purposes, let’s take a look at what that $9 billion Minnesota Medicaid fraud number would buy in the way of road and bridge infrastructure in South Dakota.
WHAT $9B BUYS IN ROAD AND BRIDGE INFRASTRUCURE IMPROVEMENTS
First of all, $9 billion is a massive sum for infrastructure in a rural state like South Dakota, which has about 8,800 miles of state-maintained highways (out of ~80,000 total public road miles statewide) and around 5,800–5,900 bridges (with ~16% structurally deficient as of recent data).
To put this in perspective, here are realistic estimates of what $9 billion could fund in road and bridge work, based on typical US and regional construction costs (adjusted for recent inflation trends, rural factors, and available data from Federal Highway Administration and state reports). Of course, costs vary widely by type (new build vs. reconstruction/resurfacing), terrain (flat prairie vs. Black Hills), number of lanes, bridges included, and whether it’s state, county, or local roads, but you’ll still be amazed at what $9 billion can buy.
Road Construction/Reconstruction
- Rural two-lane road costs (common in SD for secondary highways) are typically $2–3 million per mile for new paved construction or major reconstruction (excluding major bridges).
- $9 billion could fund roughly 3,000–4,500 miles of such roads — that’s equivalent to resurfacing or rebuilding a large portion of the state’s rural network or adding significant capacity/upgrades.
- Four-lane highways costs (e.g., major arterials or interstate expansions) are often $4–6 million per mile in rural/suburban areas (higher in urban or hilly terrain).
- This could cover 1,500–2,250 miles — enough for major statewide upgrades, like reconstructing segments of key routes (e.g., US Hwy 385 or I-90 corridors).
- Major interstate reconstruction costs (e.g., widening or a full rebuild) can reach $10–20+ million per mile (or far more with interchanges/bridges).
- $9 billion might fund 450–900 miles of high-end interstate work, comparable to multiple full-corridor projects.
· For context, a recent 15-mile US Hwy 385 reconstruction in the Black Hills cost around $72 million (~$4.8 million per mile), showing real SD projects fall in the mid-range.
Bridge Replacement/Rehabilitation
- Average small-to-medium county/local bridges (common in rural SD) often cost $500,000–$3 million each (depending on length, type, and location; e.g., county grants often fund smaller ones in the low millions).
- Larger highway/Missouri River bridges have much higher costs — e.g., the ongoing Pierre-Fort Pierre bridge replacement is ~$50 million; bigger ones like potential Forest City Bridge could exceed $400 million.
- National averages (from FHWA data, adjusted for recent years) indicate that replacement costs are often $200–400+ per square foot of deck area (rising with inflation; e.g., ~$300–400/ft² in recent reports).
- For a typical 200–500 ft² deck rural bridge, the cost is $1–5 million each.
- $9 billion could replace several thousand smaller bridges or hundreds of medium-to-large ones — far exceeding SD’s current backlog. There are ~945 structurally deficient bridges statewide, with the federal Infrastructure Investment Jobs Act passed in 2021 providing only ~$225 million total for bridges over multiple years.
In summary, $9 billion would dwarf SD’s typical annual transportation budget, in which state plus federal aid often totals in the hundreds of millions per year. It could theoretically:
- Reconstruct/upgrade thousands of miles of rural roads.
- Replace most or all of the state’s deficient bridges.
- Fund major projects like multiple Missouri River crossings, full interstate modernizations, or widespread safety/resurfacing.
CONCLUDING THOUGHTS
The Minnesota fraud story is still unfolding; whole of government investigations by HHS, Treasury, and FBI, and other agencies are ongoing. The Democrats stirred up anti-ICE protests to shift the public narrative, but the fraud revelations will reemerge when DFL politicians and other fraudsters are indicted.
Regardless of the outcome, the story is a spotlight on the welfare fraud grift implemented by the political class (ESPECIALLY Democrats in Blue states) since the Great Society programs of the 1960s opened the federal floodgates of taxpayer-funded programs. The $9 billion worth of Medicaid fraud (from just one of the fraudulent programs being run in Minnesota) would represent transformative, generational investment in South Dakota’s road and bridge infrastructure — enough to address decades of needs in a state like ours that has relatively low population density and vast rural mileage.
Now imagine what the rest of the fraud uncovered in Minnesota and other blue states – and still to be uncovered – could do in your state! That is the context that matters, not the spinning by the legacy media that we are enduring. And remember that the $9 billion is almost certainly a low estimate.
The crooks absolutely HAVE to go to jail, especially the enablers in the DFL and Minnesota state government. And every single naturalized citizen involved needs to be denaturalized and deported posthaste!
The end.