Category: Welfare reform
Trump has the chance to end the welfare free-for-all Minnesota exposed
It’s the $1.2 trillion question.
The United States spends roughly $1.2 trillion every year on means-tested welfare programs — cash aid, food assistance, housing subsidies, and medical care. The list runs through a thicket of acronyms: SNAP, TANF, SSI, EITC, ACTC, WIC, CHIP, ACA subsidies, and CCDBG, plus school meals, Medicaid, and Section 8 housing.
States that eliminate fraud can afford to provide better aid to real residents in need — creating a race to the top in administration rather than a race to exploit Washington.
This guaranteed-income architecture now fuels a destructive cycle. Federal spending drives debt. Debt fuels inflation. Inflation expands dependence. And Washington responds by printing more money and sending it back to the states — without demanding serious accountability.
The result is a bottomless pit of spending, fraud, and inflation, with states handed endless federal funds and almost no incentive to police abuse.
Minnesota’s massive Somali-linked fraud scandal exposes this system in its most grotesque form. The question is whether President Trump will use it to force states to reclaim ownership — and responsibility — over welfare.
The day-care, nutrition, and medical fraud uncovered in Minneapolis is not an aberration. It is the predictable outcome of an open-ended entitlement state. Fraud networks thrive wherever federal money flows without limits or consequences. While the Minneapolis cases involved tight-knit ethnic networks, the underlying problem is national and structural. As long as states do not have to pay their own way, fraud will remain rational behavior.
California offers a parallel example. A report last summer found that roughly one-third of all community college applications in the state were fake — submitted solely to extract federal financial aid. That scam could not survive if California had to pick up the tab.
It isn’t just a blue-state problem, either. As Alex Berenson has reported, Indiana’s Medicaid spending on “autism behavioral therapy” exploded thirtyfold in just six years, reaching $75,000 per child for a few hours a week of unproven playtime therapy. When federal dollars cover the bill, discipline evaporates.
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Many Americans ask how Minnesota allowed the Feeding Our Future scandal to persist for years. The answer is simple: Washington supplied unlimited money, and the state faced no budgetary consequence for ignoring warning signs.
Over 200 day-care and medical providers allegedly siphoned billions across Medicaid, child care, and nutrition programs. That scale of fraud does not occur without political indifference — or worse.
States have every incentive under this system to look away. Federal money enables a closed loop of special interests, dependency, and electoral protection. Oversight threatens the flow.
Devolving welfare programs to the states — using fixed block grants rather than open-ended federal matches — would cut this dynamic off at the knees. States must balance their budgets. They do not have a printing press. When fraud costs real money, enforcement follows.
This is the moment for Trump to make that case. Either states raise taxes to fund welfare programs themselves, or they reform and prioritize them. That choice restores democratic accountability.
Consider the contrast. The United States spends roughly $1 trillion on national defense — protecting everyone. Yet we now spend even more on means-tested welfare that serves narrower populations while distorting the economy for all. Open-ended welfare spending drives inflation, which then forces more people onto welfare. End the money-printing, and fewer people will need subsidies in the first place.
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In response to the Minnesota scandal, Trump’s Office of Management and Budget froze $10 billion in funding for TANF and the Child Care Development Fund across several states. That is a start. But temporary freezes will not survive the next Democrat administration.
The durable fix is statutory restructuring — through budget reconciliation — to force states to assume full financial responsibility for welfare programs. Without unlimited federal backstopping, abuse becomes politically and fiscally intolerable.
Critics warn that block grants spark a “race to the bottom.” The 1996 welfare reform suggests the opposite. When states gained ownership, many innovated — emphasizing work, child-care support, and fraud reduction. Accountability improved because incentives changed.
Yes, benefits should be limited to the truly needy. Open-ended entitlements allowed 250 “meal sites” to appear almost overnight in Minnesota, claiming to feed 120,000 children a day.
Force states to balance their books, and they will treat taxpayer money with respect. States that eliminate fraud can afford to provide better aid to real residents in need — creating a race to the top in administration rather than a race to exploit Washington.
The real way to “feed our future” is to end inflationary money-printing and dismantle the infinite entitlement state — so families can afford food on their own again.
