Dr. Mehmet Oz has issued a stark warning to Minnesota, indicating that federal Medicaid funding could be at risk unless the state takes decisive action against fraud and misuse within its social welfare system.

As the Administrator for the Centers for Medicare & Medicaid Services (CMS), Dr. Oz criticized Governor Tim Walz, accusing him of neglecting to address a significant issue where fraudsters have allegedly siphoned off at least $1 billion from Medicaid-funded programs, with many of the culprits reportedly being from Somali communities.

In a video message shared on his social media, Dr. Oz claimed, “Governor Walz and other Democrats in the state have turned a blind eye to these actions due to their reliance on Somali votes, fearing potential political repercussions.”

Over the past five years, individuals, predominantly from Somali communities, have allegedly profited by falsely billing the state for millions in social services that were never delivered, according to a report by The New York Times.

Federal prosecutors have charged 86 individuals in connection with these fraudulent activities, with 59 convictions secured across three distinct fraud schemes.

They also said there was an element of political blackmail used by the Somalis, who in one case allegedly threatened to sue the Minnesota government and accuse officials of racism if they didn’t comply with certain demands.

In a letter Oz sent to Walz on Friday, he demanded that the Minnesota provide ‘weekly updates’ on its progressing auditing 14 programs that were identified as suffering from fraud by CMS.

Additionally, Oz ordered the state stop accepting new applicants for these programs until it ‘demonstrates corrective progress and improved oversight’.

Dr. Mehmet Oz, the Administrator for the Centers for Medicare & Medicaid Services (CMS), said he may withhold federal Medicaid funding from Minnesota if it does not take enough action to stop fraud in its social safety net

Oz particularly laid into Governor Tim Walz, who was in office throughout the entire fraud scheme, which amounted to over $1 billion stolen from Medicaid-funded programs that were supposed to feed low-income children, provide therapy for autistic children and provide affordable housing

By the end of December, Oz wants a detailed plan on how to prevent future fraud from state regulators.

‘By the end of January 2026, if your administration has not taken sufficient corrective steps, CMS may initiate actions to withhold federal Medicaid funding for expenditures related to the fourteen identified high-risk programs,’ the letter said.

Oz emphasized in his video that this fraud has hurt both Americans who rely on these programs and Americans who pay taxes that fund the programs.

One central case involved the nonprofit Feeding Our Future, which claimed to serve tens of thousands of meals to low-income children during the pandemic. 

Prosecutors allege most of those meals never existed, and instead, the taxpayer money went to luxury homes, cars, jewelry and real estate abroad.

The fraud reached such a scale that one housing program, Housing Stabilization Services, ballooned from an expected $2.6 million to $104 million, mostly due to fake billing. Hundreds of providers were reimbursed for services that were never provided.

Another program that was supposed to provide therapy to autistic children did nothing of the sort, according to prosecutors.

They say providers found children in Minneapolis’s Somali community and falsely certified them as qualifying for autism treatment. In return, the parents were paid kickbacks for their cooperation and their silence.

Walz and Rep. Ilhan Omar, a Minnesota Democrat originally from Somalia, have documented ties to an illegal Somalian migrant named Abdul Dahir Ibrahi. Irahi (pictured with Walz) wasn’t implicated in the Medicaid fraud but has a lengthy criminal record

Ibrahi (pictured with Omar) was previously convicted in Canada of asylum and welfare fraud. He was arrested by Immigration and Customs Enforcement on Friday

Walz and Rep. Ilhan Omar, a Minnesota Democrat originally from Somalia, have documented ties to an illegal Somalian migrant named Abdul Dahir Ibrahi.

Both officials have been seen in pictures with Irahi, as has former Minneapolis mayoral candidate Omar Fateh. Fateh was born in the United States to Somalian parents. 

Ibrahi was taken into custody by Immigration and Customs Enforcement on Friday as part of a massive raid ordered by President Donald Trump after the New York Times report on the Medicaid fraud run by certain Somalis.

While Ibrahi had nothing to do with the Medicaid schemes, he was previously convicted in Canada of asylum and welfare fraud.

Ibrahi has also had a deportation order against him since 2004, which he has been unsuccessfully appealing for more than 20 years.