Maine nonprofit with Somali ties reportedly sees state funding shut off after fraud claims
A Maine health services company recently accused by a whistleblower of bilking taxpayers out of millions in Medicaid funds saw its spigot shut off this week as the state Department of Health moved to halt payments from MaineCare. Gateway Community Services is a Portland company run by a Somali-born man who ran for president – the U.S. equivalent of governor – of Jubaland, Somalia, for what would have been a four-year term beginning in 2024, according to his campaign website. Ali’s campaign manifesto includes a point saying he would create “robust security infrastructure” to counter Al-Shabab, while reports out of Minnesota claim their Somali-tied funds may have ended up in the hands of the terror group. FEDS LAUNCH ‘MASSIVE OPERATION’ IN MINNESOTA AMID FRAUD SCANDAL Incumbent Ahmed Mohamed Islam Madobe won that contest, which also inspired both the Mogadishu government and semi-autonomous Jubaland government in Bu’ale to issue arrest warrants for each other’s leaders over illegitimacy claims, according to Reuters. Ali originally came to the U.S. as a refugee in 2009, became a U.S. citizen, and started several ventures, according to the Maine Wire. MaineCare sent Gateway a notice of violation last week, according to the Bangor Daily News, which reported that payments would be suspended while the state investigated “credible allegations of fraud.” MINNESOTA GOP LAWMAKERS CITE CONSTITUTION IN CALL FOR WALZ TO RESIGN OVER FRAUD CRISIS The paper reported the state will seek more than $1 million in payments made in 2021 and 2022, with Maine Department of Health spokesperson Lindsay Hammes saying the agency will “continue to hold providers to the highest standards and ensure accountability in the use of public funds.” MaineCare paid Gateway $28.8 million between 2019 and 2024, according to records obtained by the Bangor Daily News through a public records request. The firm also received almost $700,000 in COVID-era Paycheck Protection Program (PPP) funds to purportedly save 127 jobs, according to the Maine Wire. Fox News Digital had attempted to reach Ali and Gateway earlier this month when a whistleblower came forward to NewsNation alleging he had witnessed fraud firsthand while working there. The whistleblower, Chris Bernardini, told NewsNation that while working at the firm, he “couldn’t fathom” the depths of alleged fraud he witnessed. “I thought we were helping people,” he said, adding that he received calls complaining that Gateway staff never showed up for clients, and claimed an electronic monitoring system tracking movements of field staff wrongly depicted them traveling to low-income clients, according to the outlet. HHS PROBES MINNESOTA’S USE OF BILLIONS IN FEDERAL SOCIAL SERVICE FUNDS AMID FRAUD CONCERNS: REPORT An attorney for Gateway, Pawel Bincyzk, told the Bangor paper that the firm did receive notices from the state but that the company “stands by its previous statements on this issue and will continue to cooperate with the state as it has in the past.” The notification from Augusta came shortly after Congress weighed in on the matter in a letter to Treasury Secretary Scott Bessent regarding concerns over Minnesota’s burgeoning Somali-linked fraud scandal. Rep. James Comer, R-Ky., also listed Gateway in the letter, along with several people purportedly connected to the firm, including Ali and state Rep. Deqa Dhalac, D-Portland. A message left at the phone number for Gateway’s main office was not returned, and another extension was disconnected. Fox News Digital reached out to Maine Democratic Attorney General Aaron Frey about the state’s actions. A spokesperson declined comment on the investigation.
DOJ’s second-in-command could be central to ‘vindictive’ prosecution of Abrego Garcia, judge rules
A federal judge ordered the Trump administration to produce documents related to its decision to investigate and bring criminal charges against Salvadoran migrant Kilmar Abrego Garcia while he was detained at a maximum-security prison in El Salvador earlier this year – signaling what is sure to be an action-packed evidentiary hearing in Nashville next month. The order, filed by U.S. Judge Waverly Crenshaw earlier this month and released to the public Tuesday afternoon, requires the Justice Department to produce all relevant documents to defense lawyers pertaining to its decision earlier this year to open an investigation and seek criminal charges against Abrego Garcia for conduct stemming from a 2022 traffic stop. ABREGO GARCIA REMAINS IN US FOR NOW AS JUDGE TAKES CASE UNDER ADVISEMENT The Justice Department opened the criminal investigation and presented the case to a grand jury earlier this year, when Abrego Garcia was detained at CECOT, and at the same time as lawyers for the Trump administration officials were telling a separate federal judge in Maryland that they were powerless to bring him back from Salvadoran custody. The new order stops short of compelling any government witnesses to testify for next month’s hearing, including testimony from Deputy Attorney General Todd Blanche, whose remarks – for months – have been at the center of the vindictive prosecution effort pursued by Abrego Garcia’s defense team in Tennessee. Abrego Garcia’s attorneys have argued Blanche played “a leading role” in the decision to prosecute him, a notion Blanche’s office has vehemently dismissed. They had also honed in on the involvement of Blanche’s associate, Aakash Singh. “The cornerstone of Abrego’s motion to dismiss is that the decision to prosecute him was in retaliation for his success in the Maryland District Court,” Crenshaw said in the newly unsealed ruling. “Indeed, at the time of Abrego’s arrest, Blanche linked Abrego’s criminal charges to his successful civil lawsuit in Maryland. Specifically, some of the documents suggest not only that McGuire was not a solitary decision-maker, but he, in fact, reported to others in DOJ and the decision to prosecute Abrego may have been a joint decision, with others who may or may not have acted with improper motivation.” U.S. District Judge Waverly Crenshaw had ruled in October that Abrego Garcia had established a “reasonable likelihood” that the criminal case against him was the result of vindictive prosecution by the Justice Department, a determination that shifted the burden to the government to rebut ahead of the criminal trial, and ordered the Trump administration to produce for the court internal documents and government witnesses to testify about its decision to bring the case. SCOTUS TO REVIEW TRUMP EXECUTIVE ORDER ON BIRTHRIGHT CITIZENSHIP Lawyers for the Justice Department fiercely resisted efforts to produce government witnesses or documents, arguing that the documents should be protected by attorney-client privilege and work-product privilege, among other things. The evidentiary hearing is slated to take place on Jan. 28. Crenshaw separately canceled the criminal trial date for Abrego Garcia, though the update is likely more a procedural one than a reflection of the status of the case. Abrego Garcia’s status has been at the center of a legal and political maelstrom for nearly 11 months, after he was arrested and deported to his home country of El Salvador, in violation of a 2019 withholding of removal order. This is a breaking news story. Check back for updates.
DOJ challenges Virginia law granting in-state tuition to illegal immigrants
The Trump administration is suing Virginia over a law that allows some illegal immigrants to pay in-state tuition rates to attend universities and colleges. Federal law prohibits states from providing illegal immigrants postsecondary education benefits that are denied to U.S. citizens. The Justice Department, which filed the lawsuit in Richmond, argues that Virginia state law discriminates against American citizens who can’t afford the same reduced tuition rates, scholarships or subsidies and that it incentivizes illegal immigration. “This is not only wrong but illegal. The challenged act’s discriminatory treatment in favor of illegal aliens over citizens is squarely prohibited and preempted by federal law,” the 13-page complaint states. “There are no exceptions. Virginia violates it nonetheless.” TRUMP ADMINISTRATION BANS ILLEGAL IMMIGRANTS FROM TAXPAYER-FUNDED SERVICES, INCLUDING HEAD START Under state law, students who establish residency in Virginia for one year could be eligible for in-state tuition, regardless of their immigration status. The complaint urges Virginia to stop providing illegal immigrants with in-state tuition rates, financial aid or other state benefits. TRUMP ADMIN SUES COLORADO, DENVER OVER ‘SANCTUARY LAWS,’ ALLEGED INTERFERENCE IN IMMIGRATION ENFORCEMENT “This is a simple matter of federal law: in Virginia and nationwide, schools cannot provide benefits to illegal aliens that they do not provide to U.S. citizens,” said U.S. Attorney General Pamela Bondi. “This Department of Justice will not tolerate American students being treated like second-class citizens in their own country.” Fox News Digital has reached out to the office of Virginia Attorney General Jason Miyares for comment. The Trump administration has filed tuition lawsuits against several other states, including Texas, Kentucky, Illinois, Oklahoma, Minnesota and California. Upon taking office, President Donald Trump signed two executive orders to ensure illegal immigrants can’t obtain taxpayer benefits or preferential treatment.
Republicans eye Iowa Senate supermajority in Tuesday special election
Democrats’ last sliver of leverage in Iowa’s Senate is on the line Tuesday, with Republicans poised to seize a supermajority that would let GOP leaders govern with little resistance. IOWA’S POLICE CHIEF’S SON AMONG NATIONAL GUARD MEMBERS KILLED IN SYRIA ISIS TERRORIST ATTACK Renee Hardman, the Democratic candidate, will face off against Republican Lucas Loftin in a race for Iowa Senate District 16 to fill the seat of the late Sen. Claire Celsi, who died of undisclosed medical complications in October. Celsi, a Democrat, had held a seat in Iowa’s Senate since 2019. With control of two-thirds of the chamber, Republican Gov. Kim Reynolds could more easily push through her appointments to state agencies. Without it, she requires the help of at least one Democrat to confirm her nominations. TOP GOP SENATOR STEPS UP EFFORTS TO PROTECT REPUBLICAN MAJORITY IN 2026 MIDTERMS That lone vote provides Democrats with a rare level of power in the Hawkeye State. Democrats, now in danger of losing their foothold in the Senate, also find themselves dwarfed in the state’s House of Representatives, where Republicans hold 66 of the chamber’s 100 seats. Democrats, meanwhile, hold just 33. There’s one vacancy in the chamber. At the federal level, Republicans hold all four of Iowa’s districts in the House of Representatives and both U.S. Senate seats. Notably, Democrats will likely try to wage a competitive Senate race to replace retiring Sen. Joni Ernst, R-Iowa, in 2026. DEM HOUSE CANDIDATE’S LUXURIOUS LIFESTYLE CLASHES WITH ‘WORKING-CLASS’ CAMPAIGN MESSAGE Democrats narrowly escaped a Republican supermajority back in another special election in August. Tuesday will mark Iowa’s sixth special election of the year. Polls open at 7 a.m. and close at 8 p.m. on Tuesday, Dec. 30.
Deal-making clemency: Inside Trump’s most disputed pardons of 2025
President Donald Trump granted clemency this year to a range of figures he viewed as victims of an unfair justice system. Some were tied to his newfound interest in cryptocurrency or shared in his 2020 election grievances, while another was simply brought up during a round of golf. While presidents of both parties have long used their pardon power in controversial ways, Trump’s clemency activity in 2025 stood out for its volume and for the deal-making style that has been a defining feature of his approach to power. What follows is a list of some of the president’s most controversial pardons in 2025. The day Trump took office, he issued mass clemency to nearly all his supporters who had been convicted of federal offenses related to the Jan. 6, 2021, Capitol riot. Trump said at the time they had been “treated very unfair” by prosecutors and the courts. Roughly 1,600 people faced charges over the Capitol attack, and the Department of Justice secured guilty pleas or convictions for more than 1,200 of them, according to federal data. About 200 pleaded guilty to felonies that included assaulting officers, and more than 200 others were convicted in trials of offenses that included attacking law enforcement. Trump singled out 14 of the defendants, some of whom received prison sentences that stretched beyond a decade, and commuted their sentences instead of pardoning them. They included numerous Oath Keepers and Proud Boys leaders. BOASBERG REVERSES COURSE ON JAN. 6 DEFENDANTS PARDONED BY TRUMP The president also directed the DOJ to drop pending cases for all the remaining defendants. The grand act of clemency wiped out one of the DOJ’s largest and most resource-intensive law enforcement operations in history. Cases were brought throughout all four years of the Biden administration. The founder and former CEO of Binance, the largest cryptocurrency platform, was convicted of anti-money laundering violations and received a full pardon in October 2025. The pardon came one week after Donald Trump Jr. introduced a lobbyist for Zhao to Trump while on stage at Charlie Kirk’s memorial. Critics observed that Binance has boosted the Trump family’s cryptocurrency company, but a lawyer denied any business reasons for the pardon, instead telling The Wall Street Journal Zhao was “pardoned for justice.” The former U.S. representative who was found to be a serial fabulist after his congressional run had his seven-year prison sentence commuted in October 2025. Santos pleaded guilty to federal fraud and identity-theft charges, admitting to using campaign funds to buy luxury products and pay off his credit card debt. Fellow Long Island Republicans who had previously called for his resignation reacted angrily to the commutation, with Rep. Andrew Garbarino, R-N.Y., calling it “not justice” and unfair to the people Santos defrauded. HONDURAS ISSUES WARRANT FOR FORMER PRESIDENT PARDONED BY TRUMP Trump said Santos, who became an outspoken supporter of the president prior to receiving the pardon, was mistreated in jail. Santos “has been in solitary confinement for long stretches of time and, by all accounts, has been horribly mistreated,” Trump said. Leiweke, a sports executive, was charged by the Trump DOJ’s Antitrust Division with rigging a bid to build an arena at the University of Texas. The DOJ accused Leiweke of violating the Sherman Act by gypping the university and taxpayers out of a fair bidding process to benefit his own company. Former Rep. Trey Gowdy, who represented Leiweke, persuaded Trump to grant his client the pardon after a round of golf at Mar-a-Lago, The Wall Street Journal first reported. Trump issued a heavily criticized pardon to Hernandez, the former president of Honduras, who had been convicted in a U.S. federal court on drug-trafficking and firearms charges and sentenced to 45 years in prison for helping cocaine traffickers move hundreds of tons of narcotics into the U.S. Trump’s pardon, granted in December, freed Hernandez from prison in West Virginia just days before Honduras’s presidential election. Honduras responded by issuing a warrant for Hernandez’s arrest. Trump claimed Hernandez had been unfairly prosecuted by the Biden administration. Critics observed that Trump has pushed legal boundaries to carry out one of his top agenda items, cracking down on drug trafficking, and that Hernandez’s release was counterproductive to that mission. Todd and Julie Chrisley, reality TV stars from “Chrisley Knows Best,” were convicted in 2022 of bank fraud and tax evasion and both serving prison sentences when Trump pardoned them in May. Trump cited “pretty harsh treatment” as his reason for the clemency. Their daughter, Savannah, endorsed Trump during the Republican National Committee convention ahead of the 2024 election. The daughter revealed in December she is stepping into a cohost role on “The View.” Incidentally, Savannah Chrisley’s future cohosts had slammed her parents’ pardon as unethical. NEW MOTION SEEKS COLORADO CLERK TINA PETERS’ RELEASE, CHALLENGING STATE AFTER TRUMP PARDON “If you are a reality star with a lot of money, and a tax cheat, and you commit fraud, then that’s good. We’re going to give you a pardon,” anti-Trump host Joy Behar had said. Trump granted a full pardon to Archer, who was convicted in a federal fraud case, in March 2025. Archer was a longtime business partner of Hunter Biden but became an ally to House Republicans as they investigated the Bidens for what they said were corrupt foreign business dealings. The Democratic congressman from Texas and his wife were pardoned after the Biden DOJ brought federal bribery charges against them. Trump claimed they were unfairly targeted because Henry Cuellar, a moderate who represented a battleground district in South Texas, supported more border security than many of his Democratic colleagues. However, when Cuellar filed for reelection as a Democrat after Trump’s pardon, the president said he was displeased. “Such a lack of LOYALTY,” Trump wrote on social media. “Oh well, next time, no more Mr. Nice guy!” Trump announced in December that he pardoned Tina Peters, the former Mesa County, Colorado, elections clerk who was serving a 9-year state prison sentence for orchestrating a data-breach scheme to
House GOP whip urges citizenship revocations tied to Minnesota fraud schemes
The No. 2 Republican in the House of Representatives believes it’s time to deport Somalis who participated in expansive fraud in Minnesota – even if they hold citizenship. “I have three words regarding Somalis who have committed fraud against American taxpayers: Send them home,” Rep. Tom Emmer, R-Minn., said in a press release Monday evening. LOEFFLER: VAST NETWORK OF SOMALI NONPROFITS RIPPED OFF MINNESOTA’S WELFARE STATE “If they’re here illegally, deport them immediately; if they’re naturalized citizens, revoke their citizenship and deport them quickly thereafter. If we need to change the law to do that, I will.” Emmer’s statement comes after recent revelations that fraud schemes targeting government benefit programs in the North Star State may have robbed taxpayers of up to $9 billion. In recent months, investigators have uncovered sweeping fraud schemes masquerading as daycare centers, medical providers and food assistance programs, siphoning millions in government funds by fabricating services or inflating the number of people they claimed to serve. According to Emmer, 90% of the people charged with fraud have a Somali background. “Our nation will not tolerate those who take advantage of our charity and refuse to assimilate into our culture,” Emmer said. STATE OFFICIALS AND DAYCARE MANAGER PUSH BACK ON VIRAL VIDEO FRAUD ALLEGATIONS IN MINNESOTA While federal and congressional investigations continue to work through numerous schemes, one of the more troubling questions about the fraud is about where the money could end up. City Journal, a national magazine, first reported that some of those funds could have gone to Al-Shabaab – an Islamic terror group with ties to al Qaeda. While the group also operates out of Kenya and Ethiopia, Al-Shabaab is primarily concentrated in Somalia. “If any naturalized Somalis had undisclosed ties to terrorist organizations like Al-Shabaab, I want to see their citizenship revoked and their a–es sent back immediately. Same goes for anyone who is found to have committed marriage fraud during the immigration process,” Emmer said. Under current law, U.S. citizens born into the country may not have their citizenship revoked as a penalty for crimes they commit. Naturalized citizens can have their status revoked, but only in a handful of scenarios. Under the Immigration and Nationality Act, naturalized immigrants can only have their citizenship revoked if they misrepresented their record in the application, such as hiding criminal histories or using a fake identity. UNEARTHED SURVEILLANCE EXPOSES HOW PARENTS WERE ALLEGEDLY INVOLVED IN MINNESOTA’S DAYCARE FRAUD SCHEME Earlier this month, the Supreme Court announced it would review the constitutionality of an executive order from President Donald Trump that aims to exclude children born to parents with temporary or unlawful status from U.S. citizenship. The court will hear that case in spring 2026.
Minnesota Dem Senate candidate faces call from opponent to apologize over viral ‘pandering’ hijab video
Minnesota Republican senatorial candidate David Hann is calling on one of his potential Democratic opponents to apologize after a video of her wearing a hijab and supporting the Somali community amidst a massive fraud scandal went viral on social media. “It’s emblematic of the way she and other Democrat politicians in Minnesota have behaved over the past decade or so. They’re very political,” said former Minnesota state Sen. David Hann, who is running for Senate in the Republican primary, of Lt. Gov. Peggy Flanagan’s video wearing a hijab and defending the Somali community amid a massive fraud scandal that has rocked Minnesota over the past several years. “They just are pandering to political constituencies, and they’re not doing the job that they were elected to do.” In the video, which was widely criticized by conservatives on social media last week, Flanagan can be seen donning a hijab while talking to Somali constituents. MINNESOTA GOP LAWMAKERS CITE CONSTITUTION IN CALL FOR WALZ TO RESIGN OVER FRAUD CRISIS “Salam alaikum,” Flanagan says in the video giving an Arabic greeting before saying, “The Somali community is part of the fabric of the state of Minnesota.” “I am here shopping today and just encouraging other folks to show up, support our Somali businesses, support our immigrant neighbors, and I know that things are scary right now,” Flanagan added in the video that was aired on Somali TV. “Being part of Minnesota and growing up here, the Somali community has always been a part of my Minnesota,” Flanagan added, while telling residents to “show up and support our Somali businesses and our immigrant neighbors.” “We’ve got your back,” Flanagan said. Flanagan, who has not spoken out in response to the viral investigation from journalist Nick Shirley highlighting the alleged fraud problem in Minnesota, faced criticism over the video from those who accused her of downplaying the scandal. MEDIA ‘COMPLICITY’ BLAMED AS FEDS SAY MINNESOTA FRAUD CRISIS COULD REACH $9B: ‘SHOWN THEIR TRUE COLORS’ “This is what political performance looks like — symbolism over accountability — while billions in taxpayer dollars vanish,” Fox News anchor Laura Ingraham posted on X. “Minnesota Lt. Gov. Peggy Flanagan wears hijab in solidarity with Somalis as feds probe multibillion-dollar fraud scandal.” Hann told Fox News Digital that Flanagan should apologize for and retract the video. “They did not do their duty out of concern that they would offend a political constituency,” Hann said. “So they haven’t done anything to take responsibility for what the public expects them to do. So yes, she should apologize.” “She certainly should not be sent to Washington to oversee federal dollars being spent. But it’s emblematic of the way Democrats have governed in this state. They like to posture, they like to tell people how compassionate they are. They tell us our high taxes are helping people, but they really haven’t demonstrated a concern for helping people. They’re more interested in just spending.” Fox News Digital has extensively reported in recent weeks on the Minnesota fraud scandal, including concerns that the fear of being called “racist” helped provide cover for the fraud, which primarily occurred within the state’s Somali community. LAWMAKERS PROBE SBA LOANS LINKED TO MINNESOTA’S $9B FRAUD SCANDAL: ‘RECKLESS DECISION MAKING’ “The Somali voting block is significant in the Minneapolis area, of course, and they’re concerned about that,” Hann told Fox News Digital. “And yes, I’ve seen those reports as well, that there were concerns about how this would appear. Most of the fraud was conducted by Somalis who put up these shell companies and looted the public treasury and I think the Democrats were concerned that if they went after that, they would appear to be picking on the Somali community when, in fact, they needed to enforce the law.” “I think every community wants to see the laws enforced and people in Minnesota want to see laws enforced. And this is why this is so terrible. They are just failing to do the duty that they were elected to do.” The lieutenant governor, who has been in office since 2019, is challenging two other Democratic candidates in the Senate primary race to fill the seat of outgoing Democratic Sen. Tina Smith. Former Democratic presidential candidate and current Sen. Amy Klobuchar serves as the other senator from the state. In a statement to Fox News Digital, Flanagan spokesperson Alexandra Fetissoff said the focus should be on the Trump administration’s efforts to deport illegal immigrants in Minnesota. “While the Lt. Governor was showing her support for small businesses and communities being terrorized by ICE, she was handed a scarf by a friend and briefly wore it out of respect,” Fetissoff said. “The real outrage should not be a scarf, but masked men throwing American citizens into vans and violating the constitution.” Flanagan’s team also clarified that while many on social media have claimed she said Somalis “built” Minnesota, “she does not say that in the video.” Last week, Fox News Digital first reported on legislation introduced by GOP Rep. Mariannette Miller-Meeks named after Tim Walz that is aimed at addressing future fraud like what has occurred in Minnesota and could total as much as $9 billion, according to federal prosecutors. If elected to the Senate, Hann told Fox News Digital he would push for more “safeguards.” “But I think we should also be looking at, how can we reform the whole welfare establishment?” Hann explained. “Are there better ways to help people? We should be more concerned about trying to make sure people’s lives are improved, rather than just spending money. It seems to me that the Waltz administration has been focused on just handing out money, Democrats in Washington just hand out the money and no accountability and no attempt to figure out the effectiveness of the programs that we have, we need to take a hard look at that.” Fox News Digital’s Preston Mizell contributed to this report.
Fetterman endorses prospect of potential future strikes to derail any Iranian nuclear ambitions
Sen. John Fetterman, D-Pa., declared in a Monday post on X that he would support strikes to scuttle any Iranian nuclear weapons aspirations. “Iran can’t ever develop a nuclear weapon,” the senator asserted. Earlier this year, the U.S. took military action targeting the Islamic Republic of Iran’s nuclear ambitions — and in his post on Monday, Fetterman noted that he supported that move and would support another attack against the regime in the future. “Fully supported the strike earlier this year. Fully support any future strikes to damage or destroy their nuclear ambitions,” Fetterman, an ardent and outspoken supporter of Israel, noted. JOHN FETTERMAN BREAKS WITH DEMOCRATS, SLAMS PARTY’S PALESTINIAN STATEHOOD STANCE AS ‘ABSOLUTE BETRAYAL’ President Donald Trump on Monday warned of future action if Iran seeks to rebuild its program. NETANYAHU SAYS TRUMP TO BECOME FIRST NON-ISRAELI TO RECEIVE ISRAEL PRIZE “Now I hear that Iran is trying to build up again. And if they are we’re gonna have to knock ’em down,” he said. “We’ll knock the hell out of ‘em. But hopefully that’s not happening. I heard Iran wants to make a deal. If they want to make a deal that’s much smarter.” MARJORIE TAYLOR GREENE CRITICIZES TRUMP’S MEETINGS WITH ZELENSKYY, NETANYAHU: ‘CAN WE JUST DO AMERICA?’ Trump made the comments while standing alongside Israeli Prime Minister Benjamin Netanyahu, when the two leaders met in Florida on Monday.
Biden-era rental assistance included payments to dead tenants and noncitizens, new HUD report reveals
A report by the U.S. Department of Housing and Urban Development (HUD) recently revealed billions in taxpayer funds that went to “questionable” rental assistance recipients under former President Joe Biden. The recipients included approximately 30,000 deceased tenants and thousands of potential non-citizens, according to a copy of HUD’s “Agency Financial Report” for fiscal year 2025 obtained by the New York Post. HUD officials told the Post that a “large concentration” of the funds went to New York, California and Washington, D.C., with deceased recipients getting funds in all 50 states. The department conducted an automation that compared a U.S. Treasury database to HUD’s records. The process uncovered 30,054 deceased tenants who were either actively enrolled in rental assistance programs or had received assistance after they passed, according to HUD’s report. The department found the possibly problematic payments through its own internal financial review and analytics, according to the report. SEC TURNER: HOMEOWNERSHIP IS MAKING A COMEBACK THANKS TO TRUMP, BUT THERE’S MORE TO COME “A massive abuse of taxpayer dollars not only occurred under President Biden’s watch, but was effectively incentivized by his administration’s failure to implement strong financial controls resulting in billions worth of potential improper payments,” HUD Secretary Scott Turner said in a statement provided to the Post. “HUD will continue investigating the shocking results and will take appropriate action to hold bad actors accountable,” he said. “Additionally, the Department is advancing efforts made under President Trump’s first administration to strengthen program integrity and ensure taxpayer-funded assistance serves the vulnerable communities it was intended for.” HUD CHIEF BLAMES ‘UNCHECKED ILLEGAL IMMIGRATION’ PRICING-OUT FAMILIES AMID NEW HOUSING REPORT In FY 2024, HUD distributed around $50 billion in federal rental assistance to non-federal entities, including $5.8 billion of what the report describes as “questionable payments.” HUD pointed the finger at the Biden administration for a directive “to push funding out the door with minimal oversight.” In the report, HUD alleges that the Biden administration failed to provide the department with the tools needed to verify whether entities were enforcing “the intricate rules governing rental assistance.” The report also noted that HUD’s rental assistance programs “placed substantial trust and responsibility” in the non-federal entities receiving the funds. HUD must now confirm whether fraud occurred and the extent of it before it can determine whether funding should be paused or revoked and if criminal referrals are necessary. “HUD is implementing processes and procedures to revoke or pause funding as part of its efforts to hold bad actors accountable,” an official told the Post. “Additionally, the Department could make criminal referrals and exercise other enforcement actions once it has confirmed fraud occurred.” Fox News Digital reached out to former HUD Secretary Marcia Fudge for comment.
Some states move to pick up the tab as Obamacare subsidies lapse
At least a dozen states are scrambling to limit health insurance premium hikes after Congress failed to renew enhanced Obamacare subsidies, leaving millions of Americans facing higher healthcare costs. States including California, Colorado, Maryland and New Mexico have approved or are considering temporary measures to help some residents afford coverage, but some officials across the country said the cost of replacing federal subsidies for millions of enrollees is beyond the reach of state budgets, according to Politico. “We can carry the cost for a little bit, but at some point, we will need Congress to act,” New Mexico House Speaker Javier Martínez told the outlet. New Mexico is so far the only state to fully replace the expired subsidies. Obamacare, officially known as the Affordable Care Act, was former President Barack Obama’s signature piece of legislation which expanded healthcare coverage to millions of Americans in 2010. Critics argue it forced people to buy insurance, raised costs for some consumers and significantly expanded the federal government’s role in healthcare. SPEAKER JOHNSON EKES OUT HEALTHCARE BILL VICTORY AFTER HOUSE GOP OBAMACARE REBELLION The looming expiration of the subsidies hung over negotiations during the longest-ever government shutdown in the fall, as Republicans and Democrats tried — and failed — to pass competing plans to extend or replace the enhanced tax credits. The lapse of the subsidies is expected to push millions of Americans out of the individual insurance market, increasing pressure on state Medicaid programs and hospitals already facing financial strain. State responses have varied widely, reflecting political divisions, fiscal constraints and differing views on the Affordable Care Act. According to Politico, California, which anticipated the subsidies would expire, is spending nearly $200 million to support roughly 300,000 lower-income residents, but officials warn that hundreds of thousands more could still lose coverage. COLLINS, MORENO UNVEIL OBAMACARE PLAN AS REPUBLICANS SEARCH FOR SOLUTION TO EXPIRING SUBSIDIES Some states are using regulatory maneuvers rather than direct funding to stretch remaining subsidies. Other states, including Georgia and Washington, say budget shortfalls or political opposition prevent them from acting. Most states have taken no action at all, including both Republican-led states that oppose the Affordable Care Act and some Democrat-led states that support it, according to Politico. A few lawmakers in Maine and other battlegrounds worry their efforts could disincentivize Congress from coming up with a federal solution. Earlier this month, Sens. Susan Collins, R-Maine, and Bernie Moreno, R-Ohio, held bipartisan confabs to hash out a framework for an Obamacare fix that could meet the desires of both sides of the aisle, but it has not been formally written into a bill that passed either chamber yet. Any fix would likely involve a short-term extension of subsidies paired with Republican demands for guardrails, such as income limits or cost controls. Fox News’ Alex Miller contributed to this report.