WASHINGTON — From 2020 to 2022, a group of Minnesotans pretended to be serving meals to low-income children, all the while filing for reimbursement under a federal COVID-19 relief program aimed to buoy child nutrition as schools and childcare centers closed.
In all, the schemers defrauded the government of $250 million, the Minnesota Reformer reported. Three defendants pleaded guilty in October.
Lawmakers on Capitol Hill Wednesday highlighted the conspiracy as just one example — albeit, a massive one — of the government’s blind spots in tracking its pandemic relief funds.
Rep. James Comer gaveled in the House Committee on Oversight and Accountability’s first hearing this Congress, promising to make sure government “works in an efficient manner” and guards American taxpayers from “fraudsters” — with a particular focus on the “massive waste, fraud and abuse in COVID relief programs,” he said.
The Kentucky Republican accused Democrats of pandemic overspending last Congress when they held the majority and then failing to track whether those dollars were reaching intended targets.
“We owe it to the American people to get to the bottom of the greatest theft of American taxpayer dollars in history,” Comer said in his opening statement.
Ranking member Jamie Raskin disagreed with the blame being directed toward Democrats, highlighting several held by the last Congress’ House Select Committee on the Coronavirus Crisis.
“We used the spotlight and bully pulpit of a small subcommittee to expose and reverse colossal frauds taking place against the American people,” Raskin, of Maryland, said, criticizing a lack of anti-fraud controls under former President Donald Trump that led to about $84 billion in fraudulent small business loans, among other examples.
“I confess I’m troubled that some of our colleagues seem to want to cherry pick facts and deploy distorted figures to attack the underlying legitimacy of the programs themselves,” Raskin said.
Trillions in aid
The $2 trillion Coronavirus Aid, Relief and Economic Security Act received near unanimous support from lawmakers and was signed into law by Trump in March 2020.
The massive stimulus package provided direct relief checks to Americans, sent federal money to bolster state unemployment insurance and launched the Paycheck Protection Program, which gave small businesses forgivable or low-interest loans to cover payroll and employee benefits for eight weeks, as well as mortgages, rent or utilities.
The December 2020 Consolidated Appropriations Act extended some of those programs.
In March 2021, the $1.9 trillion American Rescue Plan Act passed the 117th Congress along party lines and was enacted by President Joe Biden.
The law expanded and added new pandemic relief programs, including providing approximately $350 billion in flexible spending to states and local governments.
