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Schweizer warns federal fraud recovery dwarfed by uneven state enforcement

Peter Schweizer says the $2 billion recovered from public-assistance fraud in 2025 is far below the likely total because many states fail to pursue cases aggressively.

In a recent commentary, Peter Schweizer highlighted that the federal government reclaimed roughly $2 billion in public-assistance fraud for 2025, a figure 40 % above the final year of the Biden administration but still modest compared with expert estimates. He contrasted high-performing states such as Ohio, Indiana, Pennsylvania and Alabama, which produced numerous indictments, with low-output states like California, where 270 staff secured only 32 indictments in 2024, and Minnesota, where a single “kingpin” was jailed amid claims that Governor Tim Walz and Attorney General Keith Ellison turned a blind eye to protect the Somali voting bloc.

Schweizer also linked Ilhan Omar’s sister’s business to the same address as the Minnesota fraud operation and cited a reporter at one outlet's reporting. The Trump administration, according to Schweizer, is pressuring reluctant states by threatening to withhold federal aid. He concludes that fraud may affect 15-20 % of transactions, underscoring the need for more aggressive state enforcement.

Why it matters

State-level gaps let billions of fraudulent welfare dollars slip through, burdening taxpayers and undermining aid programs.

In this story

public assistance fraudstate investigationsindictmentsTrump administrationfraud recoveryMedicaid fraudSomali voting blocwelfare program