Widespread fraud across federal welfare programs is "systemic" and driven by Democrat policy choices, Sen. Ron Johnson told Newsmax on Tuesday, arguing that layered benefit structures and lax oversight have created incentives for abuse that are costing taxpayers tens of billions of dollars annually.
The Wisconsin Republican told "Wake Up America" that recent indictments tied to alleged welfare fraud in his state represent only a fraction of a much larger problem embedded in the design of federal assistance programs.
"This is just the tip of the iceberg," Johnson said. "We've created program after program after program, layered them on top of each other, and they're all designed to make more people dependent on government."
He emphasized that "this is a massive problem. And unfortunately, we've legalized fraud in so many areas."
Johnson pointed to Medicaid expansion under the Affordable Care Act as a primary example, arguing that the federal reimbursement structure encourages states to prioritize able-bodied adults over more vulnerable populations, while allowing states and hospital systems to manipulate financing mechanisms.
Under Medicaid expansion, Johnson said, the federal government pays significantly more for childless, able-bodied adults than for disabled children, leading states to impose provider taxes that inflate federal matching payments.
"That's how states fleece the federal government," Johnson said. "Hospital associations have literally structured their budgets around that legalized fraud."
The senator also criticized enhanced Affordable Care Act subsidies enacted during the COVID-19 pandemic, saying they have resulted in millions of questionable or nonexistent enrollees on the federal health exchanges.
Citing outside estimates, Johnson claimed as many as six million of the roughly 24 million people enrolled may not exist, contributing to what he described as roughly $30 billion per year in improper payments.
"And yet Democrats want a so-called clean extension that would perpetuate that fraud as far as the eye can see," he said.
Johnson broadened his critique to immigration policy and enforcement, arguing that open-border policies and sanctuary jurisdictions have compounded welfare fraud by failing to verify eligibility for benefits. He cited Minnesota and California as examples of states where officials, he said, ignored warning signs of abuse.
Referencing recent scrutiny surrounding Rep. Ilhan Omar, D-Minn., and fraud investigations tied to Minnesota's Somali community, Johnson accused Democrat leaders of refusing to investigate misconduct for political reasons.
"People need to be indicted, they need to be convicted, and they need to be deported when we can," Johnson said. "Democrat politicians cater to these blocs and look the other way."
Johnson also cited Government Accountability Office estimates of roughly $100 billion per year in improper federal payments, saying the true figure is likely far higher.
"We're a compassionate nation," he said, "but we are being fleeced — and the federal government is probably the easiest entity to fleece."
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