Iowa Republican Senator Joni Ernst is stepping forward with new legislation aimed at combating widespread fraud in federal programs. The proposal, dubbed the “Putting an N to Learning about Fraud Act,” seeks to implement preventative measures that can identify potential scams early on and ensure that agencies retrieve improperly spent taxpayer dollars. Ernst articulated her stance clearly, stating, “It’s absolutely unacceptable that the fraud running rampant in Minnesota could end up costing taxpayers more than $9 billion.”
The legislation focuses on two critical areas: tightening regulations surrounding child care payments and establishing new alerts within health care programs. These measures aim to address issues identified during a significant fraud scandal in Minnesota, where investigations have revealed massive losses linked to welfare and social services programs. Ernst’s plan would change how states disburse federal child care funds, requiring payment based on documented attendance rather than mere enrollment. This simple shift could provide a stronger safeguard against abuse.
Additionally, the bill proposes that states will only reimburse child care providers after the service has been rendered. Each provider must maintain attendance records for seven years, ensuring they are available for audits conducted by overseeing authorities like the Department of Health and Human Services.
On the health care side, Ernst’s legislation seeks to create new notification requirements for states related to sudden spikes in health care billing. If a state sees a doubling of costs or providers in a year, it must alert federal oversight bodies promptly. This fresh vigilance aims to catch questionable billing practices before they escalate.
Beyond just detection, Ernst’s bill seeks to empower federal agencies to reclaim funds that were wrongly awarded or fraudulently received. It compellingly directs the Office of Management and Budget to guide agencies in recovering improper payments. Inspectors general would be tasked with reporting annually on the funds reclaimed, bolstering accountability across the board.
This legislation follows a troubling pattern in Minnesota, where investigations into fraudulent claims have implicated numerous individuals, many from the state’s large Somali community. It is estimated that these fraudulent activities could result in losses amounting to $9 billion. Ernst did not shy away from highlighting this, pointing out bluntly, “The swindlers in Minnesota and everywhere else soon are going to ‘lear’ the hard way that in the era of DOGE, crime no longer pays.”
As part of her ongoing efforts to hold officials accountable, Ernst also intends to issue her office’s “Squeal Award” to Minnesota Governor Tim Walz for his handling of the fraud crisis. This recognition serves to spotlight failures in government oversight. Walz’s administration has faced scrutiny for allowing this fraud to occur during his tenure. Though he acknowledges the scale of the issue, he contends that the figures being circulated are exaggerated.
Ernst has been a vocal advocate for addressing waste in government spending, often aligning herself with similar initiatives during the Trump administration. Her efforts have culminated in the establishment of the Senate Department of Government Efficiency (DOGE) caucus, which focuses on cutting unnecessary spending and promoting transparency. Through these actions, she claims to have contributed to more than $15 billion in savings.
This new legislation is a significant step in addressing fraud before it spirals out of control. By implementing early detection and recovery measures, Ernst’s proposal aims to safeguard taxpayer funds and enhance accountability across federal programs. As the fallout from the Minnesota scandal continues, it highlights the need for robust oversight to protect public resources from fraud and abuse.
"*" indicates required fields
