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Cato Weekly Podcast • January 15, 2026 

# Fallout from the Minnesota Fraud Scandal 

Cato’s David Bier and Chris Edwards discuss the welfare fraud scandals in Minnesota, including the $250 million Feeding Our Future scam, to explain how federal money flowing through state programs creates weak oversight and incentives for abuse. They argue that the structure of federal aid to states, not immigration or individual bad actors, is the core driver of fraud in welfare, housing, and health programs.

#### Show Note 

[![Department of Housing and Urban Development Building (HUD)](/sites/cato.org/files/styles/content_teaser/public/2025-05/dept-of-housing-and-urban-development-hq%20Cropped.jpg?itok=iOglIW-e)](https://www.cato.org/policy-analysis/ending-community-development-subsidies) 

Study 

### [Ending Community Development Subsidies](/policy-analysis/ending-community-development-subsidies) 

By [Chris Edwards](https://www.cato.org/people/chris-edwards) 

Congress should end federal subsidies for community development. Local public services and investments should be funded by local governments and the private sector.

[![Creative Commons License](/build/cato_2020/images/creative-commons.svg)](http://creativecommons.org/licenses/by-nc-sa/4.0/) 
This work is licensed under a [Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License](https://creativecommons.org/licenses/by-nc-sa/4.0/). 

##### Featuring 

[![David J. Bier](/sites/cato.org/files/styles/author_picture/public/2021-01/David%20Bier.jpg?itok=orT_ECKQ)](/people/david-bier) 

##### [David J. Bier](/people/david-bier)

Director, Immigration Studies, and The Selz Foundation Chair in Immigration Policy, Cato Institute

[ 

](https://x.com/David_J_Bier) [ 

](mailto:dbier@cato.org) 

[![Chris Edwards](/sites/cato.org/files/styles/author_picture/public/2021-01/Chris%20Edwards.jpg?itok=549WLrcG)](/people/chris-edwards) 

##### [Chris Edwards](/people/chris-edwards)

Kilts Family Chair in Fiscal Studies, Cato Institute and Editor, Down​siz​ing​Gov​ern​ment​.org

[ 

](https://x.com/CatoEdwards) [ 

](mailto:cedwards@cato.org)