Overview
- The Department of Labor notified Minnesota on Monday that an on‑site unemployment insurance strike team will conduct a targeted review of potential fraud and payment controls.
- Federal reviewers said the inquiry will assess alleged issues tied to multiple programs, including the Federal Child Nutrition Program, the Early Intensive Developmental and Behavioral Intervention autism services, and Housing Stabilization Services.
- The agency cited a prior onsite review indicating Minnesota’s Benefit Payment Control and other integrity functions were not being used in the UI program, a gap intended to flag fraud, waste, and abuse.
- CMS recently warned it could withhold federal Medicaid funds without immediate corrective action, while the Treasury Department and the House Oversight Committee continue separate examinations.
- Minnesota officials point to UI payment accuracy that exceeds federal metrics, reporting an 8.25% improper payment rate totaling an estimated $262 million over 2021–2024, as Gov. Tim Walz launches a statewide fraud‑prevention initiative led by Tim O’Malley.