Minnesota nonprofit saw 2,800% taxpayer funding surge in COVID fraud

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What was a modest flow of taxpayer dollars, Feeding our future suddenly became a flood, increasing 2,800% in a year, a dramatic surge that is now the focus of growing attention and regulatory concerns.

Explosive growth happened during COVID-19 pandemicwhen the organization took advantage of the Minnesota Department of Education's (MDE) federally funded child nutrition program, siphoning off money intended to feed low-income children. This is now the largest COVID-19 related fraud case in the country.

MINNESOTA'S COSTS TO FIGHT FRAUD IMMEDIATELY INCREASED, LEAVING TAXPAYERS TO PAY FOR FAILURE TWICE

Data from the Minnesota Office of the Legislative Auditor sheds light on how the scheme went unchecked for so long, finding that MDE's oversight was “inadequate” and its failures “created opportunities for fraud.”

Government reports document rising payments and show how fraud has grown before our eyes.

Feeding Our Future's payouts began at $1.4 million in 2019, according to the government audit. That figure rose to $4.8 million the following year and peaked at $140.3 million in 2021, a staggering 2,818% increase.

Even before the pandemic, Feeding Our Future was already outstanding.

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By the end of 2019, it sponsored more than six times as many Child and Adult Care Facility Program (CACFP) sites as its peers.

As federal food spending has increased during Covid-19, this gap has only widened. While funding for all food sponsors has increased, Feeding Our Future's growth has far outpaced the rest of the system.

During a 2022 press briefing, U.S. Attorney Andrew Luger outlined federal charges against 47 people accused of participating in the $250 million Feed Our Future scam. (Glen Stubbe/Star Tribune/Getty Images)

In 2021, nearly four out of every $10 sent to nonprofit food donors in Minnesota went to Feeding Our Future alone, according to the Legislative Auditor.

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Taken together, the numbers show that Feeding Our Future has expanded faster, adding more sites and collecting a far larger share of federal food funds than any comparable organization. long before government regulators intervened.

Minnesota Capitol

The Feeding Our Future scandal exposed serious shortcomings in Minnesota's oversight of federal nutrition funds. (AP Photo/Steve Karnowski)

Equally striking were the failures in oversight.

Flawed applications were processed, complaints were never investigated, and the nonprofit continued to expand despite repeated warning signs.

Moreover, after a multi-year, $250 million Social Security fraud scheme, Minnesota taxpayers will now fund costly statewide cleanup efforts, effectively paying twice for failure after state officials ignored warnings.

Governor Tim Waltz Minnesota has said in the past that it is ultimately responsible for fraud that occurred under its administration.

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