MINNEAPOLIS – Despite a multi-billion-dollar fraud scandal that has rocked Minnesota and captured national attention, serious concerns are mounting that the state’s Democrat leadership has utterly failed to put a stop to the rampant corruption.

"We have not slowed down, there is no sense in which the fraud has been stopped in Minnesota," Bill Glahn, a sharp policy fellow at the Center of the American Experiment, revealed to Fox News Digital. His stark warning underscores a disturbing reality: the catastrophic misuse of taxpayer funds continues unabated under Governor Tim Walz's watch.

Glahn has been a relentless voice, exposing how Minnesota's rapid, unexplained proliferation of provisional assisted-living licenses – particularly for small facilities – appears to be far outstripping any meaningful state oversight. In a recent analysis, Glahn highlighted that the state's licensing database shows an astonishing 364 new provisional facilities cropping up in just the past year. He didn't mince words, calling for an immediate 90-day moratorium on new licenses to allow officials to actually investigate this explosion of potential fraud.

"We have something along the order of 2,500 of these licensed across the state, but about 20% of them, around three, 400 of them have just been started in the last year," Glahn explained, pointing to the disturbing trend.

The expert further detailed the glaring red flags: "I'm not sure if there's a real underlying driver in the demographics or the demand for these facilities, but it's odd that we have these assisted living facilities linked to Medicaid fraud, at the same time, the Minnesota Department of Health is approving more than one a day. More than one new facility gets approved every single day, 365 days a year. And I don't think anybody is really giving any thought to, hey, maybe some of this is not on the up and up."

Minnesota Gov. Tim Walz testifies during a House Oversight and Government Reform Committee hearing in the U.S. Capitol in Washington, D.C., on March 4, 2026. The hearing examined alleged misuse of federal funds for Minnesota social services and Medicaid programs. (Anna Moneymaker/Getty Images)

The ongoing nature of this crisis was thrown into sharp relief by a recent criminal complaint from Attorney General Keith Ellison’s office against Salman Ahmed Elmi. Filed August 17, the charges outline eight felony theft offenses tied to alleged Medicaid billing fraud – a clear signal that the rot is still spreading.

Even more shocking, the criminal complaint describes alleged ties between the Medicaid-funded businesses, properties previously used for commercial sex services, and individuals investigators say were part of a heinous sex-trafficking organization.

"This is two scandals in one," Glahn declared, exposing the horrifying depth of the corruption. "You have a commercial sex operation, actual brothels, housed in what were later licensed as assisted-living facilities under the Medicaid program." Adding insult to injury, Elmi had even received a state award as an "Outstanding Refugee."

"Elmi’s case alone makes clear that this is not old news," Glahn emphasized. "This particular fraud was going on just a couple of months ago."

The latest allegations, Glahn argues, are not isolated incidents but symptoms of a profound systemic failure within state agencies under the Walz administration – agencies that are supposedly responsible for vetting providers and safeguarding taxpayer-funded programs.

"Personnel is policy," Glahn asserted, pinpointing the core problem. "There isn’t a regulatory mindset under the Walz administration. There isn’t the mindset that we need to trust but verify."

While some limited, largely cosmetic "fraud-prevention steps" have been announced by Minnesota officials since the scandal first exploded, Glahn forcefully stressed that these reforms utterly fail to address the central issue: a damning lack of accountability for those who allowed these colossal schemes to fester and flourish.

"Walz has never cleaned house, he’s never fired anybody for not detecting the fraud or not prosecuting the fraud," Glahn stated unequivocally. "It’s the same people doing the same thing, and that culture has never changed."

Minnesota Gov. Tim Walz testifies during a House Oversight and Government Reform Committee hearing at the U.S. Capitol Building in Washington, D.C., on March 4, 2026. The committee held the hearing to examine the alleged misuse of federal funds intended for Minnesota social services and Medicaid programs. (Getty Images)

The messaging, Glahn concludes, must come from the top – but it isn't. "They're just operating as business as usual," he lamented. "We don't have anybody who's currently in office, currently in charge of state government, at least in the executive branch, who's doing anything substantive to address the fraud. It's just amazing how we see these reports every day, and we have Tim Walz traveling the country, traveling elsewhere. He's a lame duck. He doesn't seem to have any interest in closing out this chapter of his legacy with any kind of victory on the fraud front."

Adding to the perception of gross negligence, both Walz's Lt. Gov. Peggy Flanagan and Minnesota Senator Amy Klobuchar, who were in positions of power during the fraud's heyday, are now running for higher office. Klobuchar, in particular, has unveiled a "multi-point plan" to combat fraud – but only if she gets elected governor in November.

Glahn sharply questioned the timing and sincerity: "I don't know why we couldn't implement this stuff today. She's called for a top-to-bottom audit of state government. She's got another few data points that perhaps were legislative proposals that didn't get passed. Tim Walz could call a special session. We could be in session on Monday, passing an anti-fraud agenda, but there's nothing. So I guess he just fundamentally doesn't have an interest in the subject."

Sen. Amy Klobuchar (D-MN) speaks during a rally in support of a "Yes" vote on Proposition 50, a congressional redistricting measure in the November 4 special election, at the Los Angeles Convention Center in Los Angeles, California, on November 1, 2025. (David Swanson/REUTERS)

The Minnesota Department of Human Services offered a defensive statement, claiming a series of "anti-fraud reforms" since late 2024, including freezing enrollment for new providers in certain high-risk services and making referrals to law enforcement. But these incremental steps ring hollow against the backdrop of billions lost and an expert's warnings that the fraud has not slowed down.

The ongoing scandal in Minnesota is a stark reminder of what happens when leadership prioritizes political ambition over public trust and accountability. Taxpayers deserve far better than a "business as usual" approach to what has become a shocking testament to government failure and unchecked corruption. It is high time for true America First leadership that puts integrity and the protection of citizens' hard-earned money above all else.