Senator Joni Ernst welcomed two whistleblowers and investigative reporter Luke Rosiak to a Senate hearing on May 20, focusing on exposing fraud, corruption, and bureaucratic cover-ups within federal programs. The hearing aimed to address the accountability of government employees and others involved in fraudulent activities affecting taxpayer funds.
During her remarks, Ernst said, “When Americans send their tax dollars to Washington, they deserve to know the money they worked hard to earn will be carefully safeguarded and responsibly spent.” She continued by highlighting that “fraudsters are ripping off $1.4 billion of taxpayer money every single day.”
Ernst described several cases of fraud involving government programs. She referenced instances such as vacant daycare centers in Minnesota receiving nearly $10 million despite a lack of children present, phony hospices in Los Angeles, bogus home care services in Ohio, and individuals openly sharing scams on social media platforms. Ernst said one Small Business Administration employee promoted a pyramid scheme online and used insider access for personal gain: “She got away with it for years, stealing more than $3.5 million from four different programs.”
The senator also mentioned that over 1,300 companies owned by felons received financial support from the Small Business Administration during the pandemic despite being ineligible due to criminal histories. In another example from Minnesota’s Department of Education meals program, civil servants who reported abuse faced retaliation while hundreds of colleagues were rewarded with bonuses.
Whistleblowers attending the hearing shared experiences where flagging fraud led to greater consequences than committing it. Ernst said these individuals were “bullied by the bureaucracy for doing their jobs too well and daring to call attention to abuses.” She further noted an investigative journalist uncovered fraudulent home care service providers using Medicaid billing data.
The Senate Small Business and Entrepreneurship Committee supports informed decision-making on national fiscal priorities; offers Congress comprehensive policy options on federal budget components; features Lindsey Graham as chairman and Jeff Merkley as ranking member; contributes through resolutions and reconciliation instructions; was established via the Congressional Budget and Impoundment Control Act of 1974; and provides nonpartisan budgetary analysis through oversight of the Congressional Budget Office, according to the official website.
Ernst concluded her remarks, stating that efforts like those discussed at this hearing would help protect taxpayers by identifying warning signs for rip-offs so that “we can put the fraud-fluencers and government grifters out of business.”