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Feds raid multiple Minnesota autism service providers amid Medicaid fraud investigations

Federal agents raided multiple Minnesota autism service providers Thursday in the latest law enforcement action involving a state already under intense scrutiny over allegations of widespread fraud in taxpayer-funded programs.

The FBI confirmed that federal and state agencies were conducting "court-authorized investigative activity" at multiple locations across Minnesota, including sites in the Twin Cities and Rochester, according to MPR News. Meanwhile, Minnesota Attorney General Keith Ellison's office also confirmed that its Medicaid Fraud Control Unit executed search warrants at Iska Inc. in St. Louis Park and Bright Horizon Therapy in Edina, both of which provide autism-related or other Medicaid-funded services.

The operation involved the FBI, the Department of Health and Human Services Office of Inspector General, IRS criminal investigators, U.S. Postal Inspectors and the Minnesota Bureau of Criminal Apprehension, according to FOX 9 Minneapolis.

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"This is an active investigation, and no further details are available at this time," FBI Minneapolis spokesperson Matt Vogel told MPR News.

Iska Inc. received more than $16.7 million in Medicaid payments between 2018 and 2025, according to state data reviewed by the Minnesota Star Tribune. The business participated in Minnesota's Early Intensive Developmental and Behavioral Intervention program, which provides services to children and young people with autism and has faced increasing scrutiny over fraud allegations.

The latest searches follow a series of enforcement operations targeting suspected fraud in Minnesota's publicly funded programs. In April, federal and state investigators executed 22 search warrants in Minnesota, including at autism service providers and childcare businesses.

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The Justice Department also announced charges against 15 defendants in May in connection with alleged health care fraud schemes involving more than $90 million in intended losses. The cases included an alleged $46.6 million scheme targeting Minnesota's autism intervention program, which DOJ said saw Medicaid claims surge from more than $600,000 in 2018 to more than $400 million by 2025.

The raids come ahead of Vice President JD Vance's planned visit to Minnesota — alongside members of the White House Task Force to Eliminate Fraud — where allegations of public-services fraud have fueled growing questions about oversight. 

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Officials have not announced charges related to Thursday's searches, and the allegations against any individual business remain unproven.

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ActBlue's woes not over as top Republican predicts potential DOJ charges over foreign cash controversy

A top House Republican leading the investigation into ActBlue is warning that Democrats' main fundraising platform could potentially face criminal charges.

Committee on House Administration Chairman Bryan Steil, R-Wis., told Fox News Digital that the congressional investigation into ActBlue would continue and that he suspected the Department of Justice (DOJ) would act as well if federal prosecutors believed a crime could be proven in court.

"We know that ActBlue did not have the fraud prevention standards in place that were necessary to prevent foreign funds from finding their way, through the ActBlue platform, into Democratic campaigns and Democratic causes. I'm of the belief that we ultimately need to continue this investigation," Steil told Fox News Digital.

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"And then, separate of that, the United States Department of Justice will make a decision as to whether or not they believe that there was a crime committed. And if they can prove that in court, my belief would be that the Department of Justice would move forward."

Steil's committee, along with the House committees on oversight and the judiciary, have for years probed allegations that ActBlue's lax verification standards have allowed foreign cash to seep into American elections. ActBlue has denied any wrongdoing and dismissed the probe as a partisan attack.

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ActBlue has, however, sought to shore up its donor verification standards as the probe has gone on, including most recently rolling out a new passport verification system.

"Our investigation is about getting the facts to the American people, and, in large part, putting ourselves in a position to update our campaign finance laws for the digital era," Steil said. "So many of our campaign finance laws were written for a previous time. It is absolutely essential that we're updating our laws to actually address the fact that we are in a campaign finance digital era."

President Donald Trump directed now-former Attorney General Pam Bondi to open an investigation into ActBlue in April 2025, but the current status of that probe is unknown. Fox News Digital reached out to the DOJ with Steil's comments, asking for an update on the investigation.

The platform has long been used by many Democrats to raise money for their political campaigns, including Democratic leaders in the House and Senate, though it said it paused donations from Americans abroad in 2025.

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ActBlue has consistently denied wrongdoing in responses to Fox News Digital and communications to House investigators. Ten top figures within the company, including executives and founders, have pleaded the Fifth Amendment to avoid answering questions in both public and private sit-downs with GOP-led committees.

But a new report released earlier this month, first reported by Fox News Digital, appeared to show employees green-lighting donations despite some questions about where they came from.

Chief among the GOP's concerns was ActBlue's passport number verification. According to the report, the field only required the correct number of characters for a U.S. passport number rather than a valid code for a donation to be accepted.

A letter sent to House investigators by ActBlue's lawyers earlier this month said its new program "adds passport-based identity verification as a further enhancement to ActBlue’s multi-layered approach to fraud and foreign-contribution prevention."

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"The new program uses the best available technology to allow eligible donors located abroad to verify their identity using a valid U.S. passport. It reflects substantial engineering investments by ActBlue to ensure that, as it resumes processing contributions from foreign addresses, its compliance systems can withstand scrutiny," the letter said.

Steil said at the time that the update "only confirms what we've been saying: ActBlue failed to verify the citizenship of individuals who made donations from abroad."

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Fox News Digital reached out to ActBlue for comment on Steil's most recent remarks.

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