Trump is cracking down on the welfare fraud no one’s talking about

EXCLUSIVE — Americans are now acutely aware that welfare fraud is rampant in Minnesota. But the blatant theft from taxpayers is so widespread that there’s an entire category of fraud yet to be uncovered. It’s all but certain that local retailers are trafficking in food stamps, too. But this isn’t just a Minnesota scandal.

In a new report, we estimate that thieves are stealing at least $2 billion per year nationwide. Thankfully, the Trump administration is starting to crack down with a new investigation.

To date, billions of dollars in fraud have been uncovered in Minnesota — across Medicaid, child nutrition, housing, and child care. But from the moment that scandal broke, we started looking into a different kind of theft: “food stamp retailer fraud.” Under this scheme, retailers accept food stamps for products that aren’t eligible for the program, including liquor or cigarettes. But they record it as a purchase that qualifies — say, vegetables or meat. The retailers pocket the taxpayer money, while consumers get something they couldn’t otherwise buy. As far as fraud goes, it’s quick and easy and profitable.

The Department of Agriculture, which runs the food stamp program, has long known this is a major problem. In 2021, the Biden administration estimated that 1 in 7 retailers is involved in trafficking, including 25% of small grocery stores and 21% of convenience stores accepting food stamps. But rather than stop this abuse of taxpayers, Democratic administrations have ignored and encouraged it. Most recently, the Biden administration supercharged food stamp spending by more than 50%, creating huge new opportunities for theft. Based on our analysis, all the signs in Minnesota point to significant abuse of taxpayers.