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Critics warn Minnesota legislation now taking effect is setting up the ‘next billion-dollar fraud’
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As a massive fraud scandal continues to unfold in Minnesota, a new law in the state is set to take effect on Jan. 1 granting 20 weeks of paid leave, which critics say just opens the door for more fraud in the state.
The legislation, signed into law by Gov. Tim Walz, will allow Minnesota workers up to 12 weeks a year off with partial pay to care for a newborn or a sick family member, and up to 12 weeks to recover from their own serious illness. Benefits will be capped at 20 weeks a year for employees who take advantage of both.
«Everyone deserves paid time away from work, to heal, to grow, and to live,» Lt. Gov. Peggy Flanagan said at the signing ceremony in 2023. «This time is not optional. It’s not a nice-to-have. It’s a must-have if we truly are going to be the best state in the country to raise a family.»
The new state paid leave program is separate from, and in addition to, existing federal and Minnesota parental and maternity-leave rights, although it can run concurrently with them for the same period of time, and is being enforced by a new government agency called the Minnesota Department of Employment and Economic Development with more than 400 full-time employees overseeing the process.
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Minnesota Gov. Tim Walz sits for an interview with Star Tribune journalists in his office at the State Capitol in St. Paul on Dec. 12, 2024. (Alex Kormann/The Minnesota Star Tribune/Tribune News Service via Getty Images)
Critics on social media in recent days have expressed doubt about the safeguards put in place to prevent fraudsters from exploiting the new law given the massive scandal in Minnesota’s nonprofit and welfare programs, which prosecutors say could total $9 billion.
«In the middle of a massive fraud scandal, Minnesota Democrats are bragging about creating a new entitlement just as ripe for abuse,» Red State writer Bonchie posted on X. «The scheme involves businesses forced to pay a premium, with the state paying workers for 20 weeks of ‘paid leave.’ Are Minnesotans tired yet?»
Bill Glahn, a policy fellow at the Center of the American Experiment, who has been at the forefront of fraud coverage in Minnesota for many years, told Fox News Digital he has been «describing this as the next billion-dollar fraud.»
Glahn explained that Republicans previously refused to even hear similar proposals when they controlled the Minnesota House, but that Democrats passed the law after gaining full control, without any Republican support. Instead of using private insurance companies to administer paid leave, Glahn is faulting Democrats for creating an entirely new state-run bureaucracy staffed by hundreds of unionized government employees.
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The sun shines on the Minnesota State Capitol. (Steve Karnowski/Associated Press)
«This is going to be just like all these Medicaid programs that they start de novo, where they say, ‘Oh, we’ll probably have two or three million dollars worth of claims on this,’ and then it quickly balloons up to 100, 200 million,» Glahn said.
Glahn outlined several ways the system could be exploited, including fake companies, fake employees, minimal contributions followed by large benefit claims and multiple people claiming paid leave to care for the same relative without any realistic oversight. Because claims are tied to private homes rather than centralized locations, he argues that fraud detection is practically impossible.
Glahn also warns that individuals could work briefly, qualify, then repeatedly claim long periods of paid leave, effectively getting paid for a full year while working only part of it and explained that Minnesota has a pattern of creating new entitlement programs that attract fraudsters who quickly identify loopholes and overwhelm oversight.
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Homeland Security investigators were part of a large fraud investigation on Monday in Minneapolis following the release of a video over the weekend on alleged day care fraud. (Department of Homeland Security)
«When you build a multi-billion-dollar state benefit program with weak oversight, fraudsters line up,» Townhall columnist and prominent commentator on Minnesota fraud, Dustin Grage, told Fox News Digital. «We’ve already seen what happens in Minnesota. The paid family leave system will be a magnet for abuse.»
A spokesperson for the Minnesota Department of Employment and Economic Development told Fox News Digital that assertions about the likelihood of fraud in the new law are «not based in fact.»
«Paid Leave has launched with strong systems in place to verify identities and work histories and to detect and prevent fraud. We accept tips about potential fraud from all sources, and we investigate all reports,» the spokesperson said. «Every leave must be certified by an appropriate professional. For example, a medical provider must attest that medical leave is necessary and also must verify who they are. Identifications are verified through licensure information, certification that is required on every application.»
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Minnesota Gov. Tim Walz is facing calls to resign from GOP lawmakers in his state. (Getty)
«Employers are a key part of this as well. They will be notified of every leave application, have an opportunity to review to make sure that information looks correct and notify us of any concerns.»
Still, the rampant fraud in Minnesota touching at least 14 programs has caused major skepticism of the safeguards in place for this new law that Democrats have pushed for years.
«It’s going to be just like every other program,» Glahn told Fox News Digital.
Associated Press contributed to this report.
minnesota fraud exposed,tim walz,minnesota
INTERNACIONAL
Qué se sabe del incendio en un bar de esquí suizo que dejó decenas de muertos en Año Nuevo
Los investigadores suizos están investigando las causas del incendio en un bar de una estación de esquí alpina que dejó dejó 40 personas muertas y 115 heridas, la mayoría de ellas graves, según confirmó la policía, durante la celebración de Año Nuevo.
La mayoría de las lesiones, muchas de ellas graves, se produjeron cuando el fuego arrasó el abarrotado bar menos de dos horas después de la medianoche del jueves en el suroeste de Suiza.
La estación de Crans-Montana es conocida por ser un destino internacional de esquí y golf. Durante la noche, su abarrotado bar Le Constellation pasó de ser un lugar de juerga a convertirse en el escenario de lo que podría ser una de las peores tragedias de Suiza.
Crans-Montana se encuentra a menos de 5 kilómetros de Sierre, Suiza, donde 28 personas, entre ellas muchos niños, murieron cuando un autobús procedente de Bélgica se estrelló dentro de un túnel suizo en 2012.
Esto es lo que sabemos sobre el mortal incendio:
El incendio se produjo alrededor de la 1:30 de la madrugada del jueves en el interior del bar Le Constellation, en plena celebración navideña.
Axel Clavier, un joven de 16 años de París, sobrevivió al incendio utilizando una mesa para empujar una ventana de plexiglás fuera de su marco, lo que le permitió escapar del “caos total” que se había formado dentro del bar. Uno de sus amigos murió y “dos o tres desaparecieron”, declaró a The Associated Press.
Dijo que no había visto cómo se iniciaba el incendio, pero que sí vio llegar a las camareras con botellas de champán con bengalas, según contó.
Dos mujeres dijeron a la cadena francesa BFMTV que estaban dentro cuando vieron a un camarero levantar a una camarera sobre sus hombros mientras ella sostenía una vela encendida en una botella. Las llamas se propagaron y derrumbaron el techo de madera, dijeron a la cadena.
La gente intentó escapar frenéticamente del club nocturno del sótano por una estrecha escalera y a través de una puerta estrecha, lo que provocó una avalancha humana, dijo una de las mujeres.
Un joven que se encontraba en el lugar dijo que la gente rompió las ventanas para escapar del fuego, algunos con heridas graves, informó BFMTV. Dijo que vio a unas 20 personas luchando por salir del humo y las llamas, y comparó lo sucedido con una película de terror.
Los heridos eran tan numerosos que la unidad de cuidados intensivos y el quirófano del hospital regional se llenaron rápidamente, dijo Mathias Reynard, jefe del gobierno regional del cantón de Valais.
Aunque las autoridades dijeron el jueves que era demasiado pronto para determinar la causa del incendio, los investigadores ya han descartado que pudiera tratarse de un ataque.
Los expertos aún no han podido entrar en los escombros, según declaró Beatrice Pilloud, fiscal general del cantón de Valais, en una rueda de prensa.
Se está trabajando para identificar a las víctimas e informar a sus familias.
Se teme que haya “varias decenas de personas” fallecidas, añadió Gisler.
Las autoridades suizas calificaron el incendio como un “embrasement généralisé”, un término francés utilizado por los bomberos para describir cómo un incendio puede provocar la liberación de gases combustibles que luego pueden inflamarse violentamente y causar lo que los bomberos denominan una combustión instantánea o un retorno de llama.
Las víctimas sufrieron quemaduras graves e inhalación de humo. Algunas fueron trasladadas en avión a hospitales especializados de todo el país.
Las autoridades instaron a la población a actuar con precaución en los próximos días para evitar cualquier accidente que pudiera requerir los ya desbordados recursos médicos.
Con pistas de esquí de gran altitud que se elevan a unos 3.000 metros en el corazón de los picos nevados y los bosques de pinos de la región de Valais, Crans-Montana es una de las mejores sedes del circuito de la Copa del Mundo.
La estación acogerá a los mejores esquiadores de descenso masculino y femenino, entre ellos Lindsey Vonn, para sus últimas pruebas antes de los Juegos Olímpicos de Milán-Cortina en febrero.
El club de golf Crans-sur-Sierre, situado en la misma calle que el bar, acoge cada agosto el European Masters en un pintoresco campo.
(Con información de AP)
Accidents,Disasters,Natural Catastrophes,Disasters / Accidents,Europe
New York City braces for Mamdani’s inauguration
Psychotherapist Jonathan Alpert joins ‘The Sunday Briefing’ to discuss New York City’s mental preparation for Zohran Mamdani to officially take office and how Americans can stick to their New Year’s resolutions.
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With nearly 9 million residents and the world’s largest financial hub, New York City is about to test a progressive economic vision under Mayor-elect Zohran Mamdani.
Proposals such as free buses, city-owned grocery stores and rent freezes have already rattled Wall Street, prompting sharp criticism from Mamdani’s critics. The clash underscores a widening divide between progressive ambitions for the city and the financial sector that has long powered its economy.
Affordability sits at the center of Mamdani’s agenda as he prepares to run America’s largest city. Here’s a breakdown of how he plans to address it.
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City-owned grocery stores
Mamdani has proposed a network of city-owned grocery stores to address rising food prices. (Charly Triballeau/AFP/Getty Images)
Mamdani has committed to creating a «network of city-owned grocery stores focused on keeping prices low, not making a profit.»
«Without having to pay rent or property taxes, they will reduce overhead and pass on savings to shoppers. They will buy and sell at wholesale prices, centralize warehousing and distribution, and partner with local neighborhoods on products and sourcing,» Mamdani has promised.
The mayor of New York City has control over city-run programs, so he can accomplish this goal by securing New York City Council approval.
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Billionaire John Catsimatidis, owner of Gristedes and D’Agostino’s, the largest independent supermarket chain in New York City, has previously said he would consider moving his corporate office out of New York following a Mamdani win.
Atlanta Mayor Andre Dickens has launched a similar pilot program, opening a city-owned grocery store in a neighborhood long classified by the U.S. Department of Agriculture as a low-income, low-access food desert.
Free bus rides
The Metropolitan Transportation Authority is a state-run agency, so the mayor of New York City does not have direct control over it. (Michael Nagle/Bloomberg/Getty Images)
Mamdani has vowed to «permanently eliminate the fare on every city bus and make them faster by rapidly building priority lanes, expanding bus queue-jump signals and dedicated loading zones to keep double parkers out of the way.»
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This proposal would require coordination with the Metropolitan Transportation Authority (MTA). MTA is a state-run agency which the mayor of New York City does not have direct control over.
According to City & State New York, Mamdani’s free bus fare promise would require an additional expense, possibly more than $700 million. It’s unclear how Mamdani plans to pay for the additional fee.
Raising the minimum wage to $30 by 2030
One of the more ambitious plans is to raise the city’s minimum wage to $30 by 2030. (Adam Gray/Bloomberg/Getty Images)
Additionally, Mamdani has said he wants to raise the minimum wage to $30 an hour in the next four years.
«After that, the minimum wage will automatically increase based on the cost of living and productivity increases,» Mamdani claims on his campaign website.
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By allowing the City Council to create its own minimum wage law, Mamdani has proposed a way to raise the minimum wage in New York City without the state’s approval. But a state-level increase is unlikely.
Free childcare
It is unclear how Mamdani will finance this specific proposal of free childcare for New Yorkers. (Ryan Murphy/Getty Images)
Mamdani has also campaigned to provide every New York family that has a child up to 5 years old with free childcare.
It is unclear how he will finance this proposal, which experts estimate could cost billions of dollars annually.
He has previously floated a tax increase on the wealthiest New Yorkers and corporations to pay for the increased services, which would require state-level approval.
Freeze the rent
Experts warn that freezing rent for rent-stabilized apartments could drive up costs for other renters. (Michael Nagle/Bloomberg/Getty Images)
Mamdani has pledged to freeze rents for tenants in rent-stabilized apartments and expand affordable housing using city resources.
While a rent freeze may sound like a straightforward fix to New York City’s affordability crisis, housing experts warn it could backfire by discouraging investment and pushing rents higher in non-stabilized units.
ACKMAN SAYS MAMDANI ‘RIGHT ON PROBLEM, WRONG ON FIX’ IN NYC HOUSING DEBATE
New York Apartment Association CEO Kenny Burgos said the policy could deter developers. «I don’t know any investor or builder who would want to build in a city where the mayor is threatening to cap revenues,» Burgos told FOX Business.
Ed Elson, a business analyst and co-host of the «Prof G Markets» podcast, echoed that concern, saying rent freezes undermine supply. «Paradoxically, they disincentivize construction, which causes rents elsewhere to rise,» he said, calling the policy «too good to be true.»
Taxing corporations and NYC’s 1%
Mamdani has floated taxing the wealthiest New Yorkers to help finance some of his economic agenda. (Michael Nagle/Bloomberg/Getty Images)
Mamdani said he would fund his programs through a «revenue plan» that would «raise the corporate tax rate to match New Jersey’s 11.5%, bringing in $5 billion. And he will tax the wealthiest 1% of New Yorkers, those earning above $1 million annually, a flat 2% tax.»
While Mamdani has certainly done the math, a plan like this requires approval from the state legislature and the signature of the governor.
TREASURY’S BESSENT WARNS NYC: NO BAILOUT UNDER MAMDANI – ‘DROP DEAD’
New York Gov. Kathy Hochul has voiced her opposition to tax hikes, which could create some hurdles for Mamdani’s marquee campaign promise.
FOX Business’ Daniella Genovese contributed to this report.
zohran mamdani,new york city,taxes
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University of Alabama student suffers ‘severe head injury’ while on family vacation in Caribbean
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A University of Alabama student reportedly suffered multiple skull fractures and other injuries after he fell while on vacation with his family in the Caribbean.
A GoFundMe page set up for Matthew Polaski and his family reads, «What should have been a joyful time together quickly became every parent’s worst nightmare.»
«Mike, Steph, Matthew, and Evan were on a family vacation in the Dominican Republic during the holidays while Matthew was home on winter break from his freshman year at the University of Alabama,» the GoFundMe page added.
«On December 28th, Matthew suffered a severe head injury after a fall. He was rushed to a local hospital where doctors performed emergency surgery to relieve swelling on his brain and save his life. He remains in critical care and was placed in a medically induced coma,» it continued. «Once stabilized, Matthew was transported by international medical flight to Miami, where his treatment continues.»
POLICE SHOULD BE TAKING ‘CLOSER LOOK’ AT COLLEGE STUDENT’S DEATH AFTER MOTHER’S ALLEGATIONS: FORMER PROSECUTOR
Matthew Polaski, left, is recovering after suffering a fall while on a family vacation to the Dominican Republic, a GoFundMe page said. (GoFundMe)
The circumstances of the fall were not immediately clear. Fox News Digital also has reached out to the University of Alabama for comment.
The GoFundMe describes Polaski as a «hardworking, respectful young man with a deep passion for gymnastics.»
«He recently began his college journey at Alabama, joined Sigma Pi fraternity, and has his whole future ahead of him. Mike and Steph have always been unwavering in their support — traveling to countless meets, tournaments, and college visits to help Matthew pursue his dreams,» it added.
AMERICAN TOURIST ATTACKED BY SHARK IN VACATION HOT SPOT
Matthew Polaski was vacationing with his family in the Dominican Republic when he suffered the fall, the GoFundMe page said. (iStock)
An update posted Wednesday on the GoFundMe page described how Matthew Polaski suffered «skull fractures, fractured pelvis and lower back vertebrate fractures.»
«They reduced sedation and checked motor responses, both arms and legs responded on chest stimulation, another good early sign. Much is still being determined with mostly with the head injury for unknowns,» the update added. «Probably the most emotional update as a parent, Matthew started motion on his own, opened his mouth, and squeezed Steph’s hand in responses. I can’t imagine how many tears Steph had in that moment.»
The Robbinsville Police Department in New Jersey said Matthew’s father used to be its chief.
The GoFundMe page said Matthew Polaski’s medical bills in the Dominican Republic have reached nearly $75,000.
Polaski is a first-year student student at the University of Alabama, according to the GoFundMe page. (Getty Images)
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«International medical transport costs alone are estimated between $35,000 and $55,000. Unfortunately, insurance provides very limited coverage for international medical care, and even with insurance, medical expenses in the U.S. add up quickly. This is only the beginning,» it said.
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