Minnesota’s New Paid Leave Law is Ripe for Fraud [WATCH]

Minnesota lawmakers are raising alarms over Governor Tim Walz’s newly enacted taxpayer-funded paid leave law, warning that vague language and minimal oversight could leave the program vulnerable to widespread abuse even before it fully takes effect.

The new law allows nearly all Minnesota residents to qualify for up to 20 weeks of paid leave per year for family care or medical reasons, with benefits capped at $1,420 per week and funded by taxpayers.

The program is projected to cost between $1 billion and $1.5 billion annually, though Republican lawmakers caution that the final price tag could climb significantly.

Fox News correspondent Garrett Tenney reported that concerns are already emerging from within state government.

“Already whistleblowers in state government are saying that people are planning to scam it,” Tenney said.

“Under the new law, almost every resident is eligible to take up to 20 weeks of paid leave a year to take care of family or for medical reasons, with taxpayers footing the bill and paying out a percentage of a person’s salary up to $1,420 a week.”

Tenney noted that while the official cost estimate ranges from one to one and a half billion dollars annually, critics argue the lack of clear guardrails could drive costs far higher.

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“The program is projected to cost between one and one and a half billion dollars a year, but Republican lawmakers say that could go up dramatically thanks to how vaguely the law is written, making it ripe for fraud,” he said.

State Representative Nolan West detailed what he described as one of the law’s most problematic provisions: the ability to designate a single person each year as someone requiring care, with limited verification requirements.

“One thing that people don’t know, you can designate one person annually as the person you care for,” West said.

“So I can designate my uncle living in Florida, go on vacation, and it’s up to your employer to investigate whether you’re really caring for that person or not.”

West said the responsibility placed on employers to police potential abuse creates an environment with little accountability.

“Like that’s just there’s no guardrails,” he said.

“It’s going to be ridden with fraud, just like we see in our other systems. The honor system is not the best way to distribute all his money.”

Republican lawmakers argue that similar government programs relying on self-reporting and limited enforcement have historically been exploited, and they fear the paid leave law will follow the same pattern.

They say the combination of broad eligibility, high payouts, and minimal verification invites misuse.

Despite the warnings, Governor Walz has downplayed concerns raised by critics of the program.

“Despite the growing scandal around the alleged fraud already taking place, Governor Tim Walz is dismissing those concerns from Republican lawmakers,” Tenney said.

WATCH:

🚨 JUST IN: Minnesota lawmakers are DESPERATELY warning that Tim Walz’s new taxpayer funded 20 WEEKS OF PAID LEAVE PER YEAR is ALREADY on the verge of being scammed

NOT ANOTHER DIME in funding for Minnesota until Walz RESIGNS

Under the plan, Somalis and illegals can designate a… pic.twitter.com/9Ene09BaMh

— Nick Sortor (@nicksortor) January 2, 2026