Critics warn Minnesota legislation now taking effect is setting up the 'next billion-dollar fraud'

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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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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"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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"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."

"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.

Kate Middleton hailed as an 'eternal influencer,' echoing Queen Elizabeth’s mystique: experts

Kate Middleton has been named the "eternal influencer," a title royal experts tell Fox News Digital is fitting for the future queen.

Earlier this month, British Vogue released its inaugural best-dressed list. The annual list features 50 of the most influential British stars. The outlet said that the "Princess of Wales's quiet support can change the trajectory of a brand."

Royal expert Helena Chard told Fox News Digital that Middleton’s inclusion came as no surprise.

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"Catherine's style, grace and ability to connect with people certainly aids her accolade of 'the eternal influencer' with her style, model-like elegance and fashion choices making her a global fashion icon. High street brands and designers all hope to dress the Princess of Wales and celebrate 'the Kate effect'," Chard said.

She continued, "Catherine emulates a combination of the late Queen Elizabeth’s magic and mystique. Her regal stoicism along with her kind, empathetic, reassuring demeanor is the perfect mix that captivates Royal fans globally."

British Royals expert Hilary Fordwich told Fox News Digital that Middleton is a "pillar of strength and popularity."

"It is becoming increasingly apparent that the ever-stoic Princess Catherine is really a rock star and pillar of strength and popularity. Rather than just surviving cancer, she’s thriving and it shows. She literally looks as if she’s lapping up life. Her resilience is so inspiring for so many," Fordwich began. 

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She continued, "She literally personifies the British spirit of stoicism, restraint and dignity, all so admired by the public. Her dedication to duty rather than perpetual drama really makes her a national treasure. She’s relatable because she is the real deal, truly authentic without having to pretend she is. She’s comfortable in her own skin, with her own family and with her own roots, which are decidedly middle-class, which has actually been her strong foundation rather than a weakness. She doesn’t virtue-signal, she actually does live her family values."

Royal experts also reflected on how 2025 has been a defining year for Middleton — from announcing her cancer remission to hosting world leaders alongside Prince William.

"It is extremely significant that Kate is carrying out her duties with renewed vigor," Richard Fitzwilliams, a royal expert, told Fox News Digital.

"Her confidence radiates especially in public speaking, an area where she was once nervous. She knows that no one else has her profile and can communicate worldwide as she and William can. An indication of the strength of their brand is the dizzying heights of popularity both of them have consistently achieved in the polls, over 70 percent popularity," he said.

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Royal expert Ian Pelham Turner told Fox News Digital that Middleton’s transition from a "commoner" to the future queen has come through years of dedication and hard work.

"It is an ongoing trend of finding ways to support cancer charities, making sense in her life of the trauma she has overcome and balancing her life between public duties as a member of the Royal family, a mother of three children, a husband soon to become King and being a former commoner, who never thought in her childhood days she would one day become the Queen," Turner began.

"How do you make this transition work? Through hard work, determination to succeed, an ability to multitask and making each day a precious day after facing a potential terminal illness, she has learned that life has given her a second incredible chance to do good in the world, and she intends to grasp that opportunity with both hands," he concluded.

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