Tag: minnesota fraud
That $200 Billion Expenditure On Trump's Iran 'Excursion' Is Real Money

That $200 Billion Expenditure On Trump's Iran 'Excursion' Is Real Money

Most people have little understanding of what is big or small in the federal budget, in large part because the media have made a conscious decision to not inform people. Rather than taking ten seconds to indicate what share of the budget a particular item is, they just write huge numbers in the millions or billions, knowing they are completely meaningless to almost everyone who sees them.

With this in mind, I thought it would be useful to write a piece pointing out that the $200 billion (2.9 percent of the budget) Trump plans to ask to cover the cost of his war in Iran is, in fact, a big deal. While this is still less than what we spend on huge social programs like Social Security, Medicare, and Medicaid, it is far larger than most of the items that are subject of major political debates.

Just to mention a few, we can start with the fraud in Minnesota in social programs that the Justice Department has uncovered. To date, this comes to $250 million. Trump has claimed there is $19 billion in fraud, but Trump also has claimed he has arranged for $18 trillion in foreign investment into the country and that he will reduce drug prices by 1500 percent. Numbers don’t have the same meaning for Trump and his team as they do for the rest of us.

While it is likely that the total figure for fraud will go higher, it almost certainly is not the earth-shattering scandal that Team Trump has claimed. After all, a childcare center refusing to let a random clown with a camera crew film the kids is not evidence of fraud. Where there is money on the table, whether in the public or private sector, some will be misspent or stolen. Trump has chosen to make a big deal out of the fraud in Minnesota because at least some of it involves Somali immigrants, but that is evidence of Trump’s racism, not a massive fraud problem.

The next item is the $550 million in annual funding for the Corporation for Public Broadcasting. Trump apparently felt it was important to save taxpayers this money rather than helping to fund Big Bird and National Public Radio. This spending comes to a bit less than $4 a household.

Then we have the Biden childcare agenda that would have cost $42.4 billion a year. This set of proposals would have made childcare affordable for the vast majority of people in the country.

The last item for comparison is the extension of the enhanced Obamacare subsidies that was the basis for the government shutdown in the fall. This would cost roughly $27 billion for a single year.[1]

If you’re wondering where the bars are for the Minnesota fraud or funding for public broadcasting, I didn’t forget them. The bars are too small to be visible next to Trump’s Iran war budget. The childcare programs and Obamacare subsidies are visible, but an order of magnitude smaller than what Trump is asking for.

The point here is that the war is a really big deal in terms of the budget. The biggest impact is, of course, the lives lost and put in danger by the war. And the economic impact on the United States and world is enormous. But this is also a huge budget issue. It is the sort of expenditure that a president would ordinarily feel they have to make a serious case for and not just demand the money from Congress.

But I suppose Trump thinks that since his mandate was almost as large as Hillary Clinton’s in 2016, he has more authority than most presidents. Congress and the country need to bring some reality to this story.

[1] The sources for the chart are Corporation for Public Broadcasting, MN fraud https://www.kwtx.com/2026/01/02/everything-we-know-about-minnesotas-massive-fraud-schemes/ , Childcare proposal https://democrats-budget.house.gov/resources/fact-sheet/president-bidens-2025-budget-uplifts-families-and-children , and Obamacare subsidies https://www.cbo.gov/system/files/2025-09/61734-Health.pdf.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.


Are There Frauds Worse Than That Minnesota Case? Let's Look Again At Donald Trump

Are There Frauds Worse Than That Minnesota Case? Let's Look Again At Donald Trump

The Trump administration has decided to make fraud in government programs in Minnesota into a national crisis requiring massive intervention by ICE and Border Patrol (don’t ask) because it was done in part by Black immigrants from Somalia. While Trump and his Republican minions have been hyperventilating over this fraud, it is worth using a little arithmetic to try to put in perspective.

Of course, arithmetic is not popular in elite circles. Even many liberals have yelled that we have to be very concerned about the Minnesota fraud, apparently because some of it was done by Black people and the Republicans are yelling about it. But I’ll confess to being an old-fashioned type who doesn’t think fraud by Black people is any worse than fraud by white people, even if Republicans yell about it. So, let’s do the numbers.

As best we can tell the amount of fraud in Minnesota in the federal pandemic-related programs the Trump gang is yelling about came to $250 million. (The ringleader was actually white.) There undoubtedly is additional fraud that will be found, but this is what we know about to date.

Trump has touted a figure of $20 billion, but there is no obvious basis in reality for this number. Remember, Trump has repeated boasted about $18 trillion in foreign investment coming into the country, that he won the 2020 election by millions of votes and that he will bring drug prices down by 1500 percent. Trump’s numbers often have nothing to do with the real world.

Let’s just ignore the Trump craziness and go with the $250 million figure of known fraud. By comparison, the inspector general of the Small Business Administration, Hannibal Ware, estimated fraud in the Paycheck Protection Program initiated in Trump’s first term was $200 billion. That would be equal to 800 Minnesota frauds.

In case you’re wondering how this fraud was dealt with, Trump didn’t send in ICE. Instead, Trump fired Mr. Ware, who is Black. He promoted the director of the Small Business Administration, Linda McMahon, to be education secretary in his current term.

There are other cases of much larger fraud that don’t seem to draw as much attention, much less the involvement of ICE, as the Minnesota fraud. For example, the Medicare Payments Advisory Commission estimates that Medicare loses about $40 billion a year to private insurers in the Medicare Advantage program because insurers exaggerate the severity of their patients’ healthcare conditions. This would be equal to 160 Minnesota frauds, also apparently without bringing the involvement of ICE.

We can also look to Donald Trump’s whack-job lawsuits. He has discovered that he can bring any lawsuit he wants against the government, for any amount, and then tell his lackeys to settle. He brought a $230 million case against the Justice Department because it prosecuted him for trying to overthrow the government and stealing classified government. He is apparently directing Attorney General Bondi to hand him the cash. This payment would be a bit more than 0.9 Minnesota frauds.

He is also suing the Internal Revenue Service for $10 billion because it allowed his tax returns for two years to leak. (Prior presidents have made their tax returns public, which Trump promised to do as well.) While it’s not clear what damages Trump could claim (a suit by another leak victim was settled with an apology), he apparently is ordering the IRS to also hand over the cash. While this settlement will have to be reviewed by a judge, it would be equal to 40 Minnesota frauds. (The Justice Department case is an administrative proceeding and requires no judicial review.)

One other item to throw into the mix, just so people can know where the money goes, is Trump’s plan to increase annual military spending by $500 billion. This would add more than $5 trillion to the debt over a decade, for those keeping score on such things. It seems the rationale is that we need more money to protect ourselves from the new enemies Trump has made. Anyhow, this increase in the military budget of 50 percent would be equal to 2000 Minnesota frauds.

To be clear, we absolutely should take seriously fraud in public social welfare programs, like what happened in Minnesota. This money is effectively being stolen from people who badly need it. Most of these programs are underfunded and the money going to fraudsters comes out of the pockets of the people standing in line who don’t get support they need.

However, we also need to keep the amount of fraud in context. Most of our tax dollars are not going to fraudsters from Somalia. In fact, if there had never been a penny of fraudulent payments to people from Somalia, it would not even be a rounding error in our budget data.

We know that Republicans, and especially Trump, exploit racism at every opportunity. Arithmetic may not be an adequate weapon to combat racism, but it can be a useful one. And decent people should use it.

Dean Baker is a senior economist at the Center for Economic and Policy Research and the author of the 2016 book Rigged: How Globalization and the Rules of the Modern Economy Were Structured to Make the Rich Richer. Please consider subscribing to his Substack.

Reprinted with permission from Dean Baker.

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