Woman Exposes Massive Medicaid Fraud Scheme in Democrat-Run Minnesota

Medicaid’s collapse into waste and fraud hit home for Erna Hammerschmidt, exposing how career politicians built a system they can no longer control.

After overcoming years of addiction and rebuilding her life, Erna discovered that her name had been used to bill the government for services she never received. 

A company she had never even met was charging taxpayers nearly $200 several times a week, claiming to have provided “mental health services.” 

It is one of countless examples of how America’s welfare bureaucracy—especially under Democrat-led states such as Minnesota—has turned into a money pipeline for fraudsters.

The Minnesota Department of Human Services has been under fire for years for failing to detect and stop widespread Medicaid and housing assistance scams. 

Under failing Governor Tim Walz, the department has wasted millions through weak oversight, political favoritism, and bloated contracts handed to “community care” groups that exist only on paper. 

These programs were meant to help people like Erna, not exploit them. 

But instead of accountability, taxpayers received excuses, “internal reviews,” and bureaucrats promising to “expand data analytics.” That means more consultants, more red tape, and no real results.

Donald Trump warned about this years ago. He is the only national leader with the courage to say what others were afraid to admit—the welfare bureaucracy in America is corrupt from top to bottom. 

It is not a matter of a few “bad actors”; rather, it is a system designed to enrich politically connected insiders. 

While Democrats in Minnesota pretend that fraud is a “racial issue,” as the owner of the company claimed, Trump’s message is clear: every dollar stolen from Medicaid is a dollar stolen from honest taxpayers and families who truly need help.

The Republican establishment deserves no credit either. 

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The Shutdown’s Fallout Spreads Further

The U.S. government shutdown has entered its 39th day, making it the longest funding gap in U.S. history.

The consequences of the standstill are far-reaching, with food benefits under the Supplemental Nutrition Assistance Program, or SNAP, having already come to a halt at the weekend. While a judge has ordered the Trump administration to release full funding for November food stamps by the end of today, the administration asked an appeals court to block the ruling. Meanwhile, around 1.4 million federal employees are on unpaid leave or working without pay until funding is restored and 10 percent of flights at 40 major U.S. airports have been cut amid air traffic control safety concerns. Trump has responded to these events by calling for Republicans to abolish the Senate filibuster rule that requires the 60-vote majority for legislation to pass.

As Statista’s Anna Fleck details below, a recent wave of surveys by polling company YouGov illustrates how the number of adults who feel they are personally being affected by the shutdown is growing.

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What to Know About Rising SNAP Fraud Claims

The Supplemental Nutrition Assistance Program (SNAP) has raised significant fraud concerns, according to the Department of Agriculture, which administers the program. 

In a recent interview with Fox News, Secretary of Agriculture Brooke Rollins called the food stamps program “broken and corrupt.”

This assessment came more than a month into the government shutdown that threatened to cut off SNAP benefits entirely. 

Rollins noted “massive fraud” uncovered by her agency and said she believes benefits should be reevaluated. 

Here’s what we know about fraud in the SNAP program. 

How SNAP Is Supposed to Work

Established in 1939, the SNAP program, also known as food stamps, is a federal nutrition assistance program that supplements the grocery budgets of low-income Americans.

It is administered at the federal level by the United States Department of Agriculture (USDA) and at the local level by state agencies that interface with applicants.

SNAP is the largest federal nutrition program in the United States, which served around 41.7 million people and cost the government nearly $100 billion in 2024.

More than 261,000 stores participate in the program, which allows eligible individuals to purchase certain foods with an Electronic Benefits Transfer (EBT) card. 

The amount of funds added to the card depends on the household’s financial situation and the number of dependents.

According to the USDA, in 2024, the average benefit per person was approximately $187 per month, and just over 12 percent of Americans received SNAP benefits.

Unlike other nutrition programs, such as Women, Infants, and Children (WIC) or child-targeted nutrition programs, SNAP is not limited to a specific group. 

As of 2023, adults aged 18 to 59 accounted for nearly 42 percent of participants, while children aged 17 and under accounted for about 39 percent. Adults aged 60 and above accounted for 19.5 percent of the program. 

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Map Shows 14 States Offering Health Coverage To Undocumented Migrants

Part of President Donald Trump‘s budget legislation, the “Big Beautiful Bill,” will seek to punish the 14 states that currently offer health coverage to people in the U.S. regardless of immigration status, including undocumented migrants.

The 14 states, most of which are Democratic-led, would see the federal Medicaid matching rate for the Affordable Care Act (ACA) expansion in their states cut from 90 percent to 80 percent, ramping up how much they would have to pay to run their service.

Why It Matters

Immigrants without legal status typically do not qualify for federal benefits, however, more than a dozen states offer various forms of health coverage to undocumented migrants.

While advocates of such services argue these programs promote public health, reduce long-term costs, and align with moral obligations to care for vulnerable populations, critics contend that such efforts strain budgets and could incentivize illegal immigration.

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Supreme Court Issues Emergency Order Temporarily Blocking Full SNAP Payments

The Supreme Court has issued an emergency order blocking SNAP funding amid the ongoing Schumer Shutdown.

Here’s more from the Associated Press:

The Supreme Court on Friday granted the Trump administration’s emergency appeal to temporarily block a court order to fully fund SNAP food aid payments amid the government shutdown, even though residents in some states already have received the funds.

A judge had given the Republican administration until Friday to make the payments through the Supplemental Nutrition Assistance Program. But the administration asked an appeals court to suspend any court orders requiring it to spend more money than is available in a contingency fund, and instead allow it to continue with planned partial SNAP payments for the month.

Justice Ketanji Brown Jackson issued the ruling, putting a temporary stay on an earlier order issued by a Rhode Island judge that required the Trump administration to disburse the full SNAP payment amount in the month of November.

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Vance Blasts Court Order to Fund SNAP as ‘Absurd’

Vice President JD Vance on Thursday slammed a federal court ruling requiring the Trump administration to fully fund the Supplemental Nutrition Assistance Program (SNAP) for November, calling the decision “absurd” and an overreach during a government shutdown.

“It’s an absurd ruling because you have a federal judge effectively telling us what we have to do in the middle of a Democrat government shutdown,” Vance said during a roundtable with Central Asian leaders at the White House.

Vance said the administration wants to restore full funding once Democrats agree to reopen the government, but argued that the court should not dictate how the administration prioritizes spending during a shutdown.

“What we’d like to do is for the Democrats to open up the government, of course,” he said.

“Then we can fund SNAP, and we can also do a lot of other good things for the American people.

“But in the midst of a shutdown, we can’t have a federal court telling the president how he has to triage the situation,” Vance said.

U.S. District Judge John J. McConnell Jr. ruled earlier Thursday that the administration’s plan to issue partial payments failed to comply with his earlier order.

The Justice Department said it will appeal the ruling, leaving the fate of SNAP benefits for millions of Americans uncertain.

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Trump Admin Must Fully Fund Food Stamps for November: Judge

The Trump administration must pay the approximately $9 billion to fully fund food stamps for November, a federal judge ruled on Nov. 6.

The U.S. Department of Agriculture (USDA) must pay states the money by Nov. 7 to distribute to the approximately 42 million Supplemental Nutrition Assistance Program (SNAP) participants, according to an oral order from Judge John McConnell Jr. of the U.S. District Court for the District of Rhode Island.

“People have gone without for too long. Not making payments to them for even another day is simply unacceptable,” McConnell said.

USDA officials had declined to fund SNAP amid the government shutdown, arguing that they could not use contingency money or revenue from tariffs. McConnell, in response to a lawsuit, recently said that the administration could either partially fund November benefits with contingency money or fully fund benefits for the month with that money and the tariff revenue.

“If the Government does want to use its discretion to use funds available to make a full payment of SNAP benefits for November 6, then it must expeditiously resolve the administrative and clerical burdens it described in its papers … but under no circumstances shall the partial payments be made later than Wednesday, November 5,” McConnell wrote in a temporary restraining order on Nov. 1.

The government chose to partially fund the November benefits using the contingency fund, which it said contained $4.6 billion. The government stated that it would not use the tariff revenue, or Section 32 funds, because if it were to, then child nutrition programs funded by that revenue might eventually run out of money.

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SNAP Recipients Will Receive More Food Stamps Than Initially Estimated: Filings

Food stamp recipients will receive up to 65 percent of their normal benefits in November, Trump administration officials said in court filings on Nov. 5.

That’s an increase from up to 50 percent that was outlined in previous filings, as well as a memorandum sent to states.

The U.S. Department of Agriculture (USDA) said in the Nov. 4 memorandum that it was reducing the maximum benefit households participating in the Supplemental Nutrition Assistance Program (SNAP) can receive to 50 percent of the current maximum allotment.

“Since that time, USDA performed further analysis and determined that the maximum allotments need only be reduced by 35%, instead of 50%, to deplete the SNAP contingency fund, and has issued a revised memorandum and allotment tables to State agencies,” Patrick Penn, a USDA deputy undersecretary, told the federal court in Rhode Island.

The revised memo, distributed on Nov. 5, said that maximum benefits will be 65 percent of the typical maximum benefits.

Trump administration lawyers in a separate filing described what happened as an error and said it worked to issue accurate information as soon as the error was discovered.

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Trump To Democrats: SNAP Returns Only After Gov’t Reopens; USDA Warns Grocers On Illegal Food Stamp Discounts

The Trump administration said Monday it plans to partially fund the Supplemental Nutrition Assistance Program (SNAP) after judges ruled in November that contingency funds must be used to pay for the benefits.

One major issue with SNAP has been the widespread fraud that erupted under the Biden-Harris regime. U.S. Secretary of Agriculture Brooke Rollins revealed Sunday that the USDA has purged 700,000 fraudulent recipients so far this year.

On Tuesday morning, President Trump wrote on X that SNAP benefits “increased by Billions and Billions of Dollars (MANY FOLD!) during Crooked Joe Biden’s disastrous term in office (Due to the fact that they were haphazardly “handed” to anyone for the asking, as opposed to just those in need, which is the purpose of SNAP!” 

Trump made it clear to radical leftist lawmakers that keeping the government closed – now on its 35th day, a record – by refusing to vote on a clean resolution would mean the SNAP program would only resume once the government reopens.

It will be given only when the Radical Left Democrats open up government, which they can easily do, and not before!” the president emphasized. 

Benny Johnson told Newsmax’s Rob Finnerty several days ago that the Trump administration should force everyone who wants to get back onto SNAP to “reapply with American citizenship.” 

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White House to Launch Website Exposing Criminal Illegal Aliens Who Have Received Medicaid

The White House will launch a website on Monday night exposing criminal illegal aliens, including murderers, rapists, and burglars, who have received taxpayer-funded Medicaid benefits, Breitbart News has learned.

The website features mugshots and photos of dozens of illegal aliens convicted of brutal crimes, undercutting Democrat claims that illegal aliens have not received healthcare benefits.

The top of the page chronicles the Trump administration’s efforts to crack down on illegal aliens convicted of crimes who have received Medicaid benefits, as well as Democrats’ efforts to restore Medicaid benefits to illegal aliens and noncitizens:

The Trump administration has intensified enforcement against criminal illegal aliens receiving taxpayer-funded Medicaid benefits, arresting hundreds of unauthorized individuals since taking office, including those with serious criminal records who exploited taxpayer-funded Medicaid illegally or through loopholes. This crackdown, driven by executive orders prioritizing public safety and fiscal responsibility, has led to the swift deportation of many individuals convicted of heinous acts, ensuring that previous resources meant for American citizens are no longer diverted to subsidize violent criminals.

Compounding the crisis, Democrats have refused to pass a clean budget bill to end the shutdown unless Republicans concede to their demands for $1.5 trillion in new spending, including restorations to Medicaid expansions that would effectively extend coverage to over 1 million illegal aliens, funneling an additional $200 billion to such programs over the next decade at the expense of U.S. families.

At least five of the two dozen individuals listed on a glimpse of the page reviewed by Breitbart News were arrested for either murder or manslaughter.

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