Trump Admin To Send ‘Strike Teams’ Into Minnesota Amid Widening Fraud Probe
The U.S. Department of Labor has announced a targeted review of Minnesota’s unemployment insurance program, escalating federal scrutiny as concerns mount over fraud in the state’s publicly funded assistance systems. The move was confirmed during testimony by Labor Secretary Lori Chavez-DeRemer before the House Appropriations subcommittee overseeing labor, health and human services, education, and related agencies on May 15, 2025, in Washington.
The decision follows a wave of national attention on Minnesota’s handling of public funds, particularly after reports of large-scale fraud in state-administered programs. In a formal letter sent to the Minnesota Department of Employment and Economic Development (DEED), the Labor Department cited recent reporting on alleged misconduct within Medicaid-funded human services programs as a basis for expanding its review.
“If there has been any related abuse of our (unemployment insurance) systems, it will not be tolerated, and I trust our specialized strike team to get to the bottom of this and report their findings directly to me,” Chavez-DeRemer said in a statement.
She later expanded on the initiative during an appearance on Fox Business, confirming that a federal team would be deployed to Minnesota to examine the issue more closely. “We’re going to send in a UI strike team to find out exactly what’s happening on the ground. We will NOT tolerate fraud under this administration,” she told host Stuart Varney.
In response, DEED officials defended the state’s oversight record, emphasizing that Minnesota’s unemployment insurance program routinely exceeds federal standards for payment accuracy. A spokesperson said the agency “welcomes the opportunity to illustrate the strength of our payment controls and oversight,” adding that its fraud rate remains below the national average.
The federal action comes as scrutiny of Minnesota’s public assistance programs has intensified at the national level, with senior officials pointing to a pattern of alleged mismanagement. The situation has drawn attention from the White House, placing the state at the center of a broader debate over accountability and oversight in government-administered aid programs.