Ernst Says Failing to End Government Grift Is the Greatest Fraud of All

WASHINGTON - Today, Senate DOGE Caucus Chair Joni Ernst (R-Iowa) called on Congress to crack down on rampant government fraud by passing her Protecting American Taxpayers Act, exposing how weak oversight and outdated payment systems have allowed scammers to siphon billions of taxpayer dollars.

Speaking on the Senate floor, Ernst said the federal government's current "pay and chase" approach-sending taxpayer dollars before verifying recipients-is fueling unprecedented waste, fraud, and abuse while leaving hardworking Americans to foot the bill. She noted that everyday Congress delays passing her bill, grifters are getting away with stealing another $1.4 billion.

Watch Ernst's remarks here.

Ernst highlighted a series of egregious examples of taxpayer-funded fraud, including:

• A Nigerian fraudster who stole more than $1.3 million in federal disability and unemployment benefits intended for vulnerable Americans,
• California prison inmates collecting roughly $1 billion in unemployment benefits while incarcerated,
• Pandemic relief payments approved under the names of celebrities and fictional characters, and
• Fraudulent businesses and fake identities receiving taxpayer-funded assistance with little or no verification.

Ernst's full remarks:

"We've all received that email from a wealthy Nigerian prince asking us to wire him some money, with promises that he will return the favor with a huge reward as soon as he can access his fortune.

"Or we've gotten that phone call from an unknown number claiming to be the IRS, warning that an arrest warrant will be issued if we don't immediately pay off an outstanding tax debt.

"And, of course, everyone's been told that our extended vehicle warranty is about to expire unless we renew immediately.

"Folks, we all know these are scams and aren't being fooled.

"Yet, somehow government bureaucrats are being bamboozled by even less sophisticated schemes.

"Except, they're not giving out access to their own bank accounts, but rather to taxpayer dollars and the U.S. Treasury.

"So folks, I'm not making this up- a Nigerian socialite actually submitted more than 100 fraudulent applications for unemployment and disability assistance that were approved.

"He finagled more than $1.3 million of U.S. taxpayer money in this scheme.

"Some of the funds were intended to provide daycare services for disabled children, but he instead spent the money constructing a luxury resort and nightclub in Nigeria.

"This Nigerian prince of fraud was outdone by California prison inmates, who collected about $1 billion in unemployment benefits using names like John Doe, John Adams and 'Poopy Britches," while serving time behind bars.

"Other con artists successfully applied for COVID cash during the pandemic using the names of well-known celebrities and fictional characters, like Charlie Brown and Nancy Drew.

"Taxpayer dollars have even been handed out to phony businesses with such obviously made up names that are so outrageous. No one could possibly believe they were real, such as Satanic Lives Matter and others that are so tasteless I can't even say them.

"Others uploaded pictures of doll faces to 'verify' their identities on applications for government assistance, and were still approved!

"Too often, the bilking is being done by the very bureaucrats overseeing the benefits.

"Over the years, I've documented countless examples of government employees caught with their hands in the cookie jar, embezzling millions of dollars and abusing their positions for personal gain.

"As a veteran, one particular example that really makes my blood boil involves a service representative for the Department of Veterans Affairs who was shaking down disabled veterans for bribes to 'grease the wheels' to speed up the approval of backlogged claims.

"A $3,385 kickback paid to him via Venmo was listed on the memo line as: CROOKED SHIT

"I apologize for my language, but that's what the Venmo actually said. We had to modify our chart today.

"So a VA representative was shaking down disabled veterans. This actually happened. That representative was caught and is being held responsible for shaking down our disabled veterans.

"The problem in most of these cases is the money is going out the door before verifying if the recipient is legitimate.

"If fraud is later detected, then the government has to decide if it's worth trying to recover the stolen money.

"This 'pay and chase' system makes it way too easy for scammers to take the money and run.

"It's like giving the cash advance and your bank routing number to the Nigerian prince who promised you a financial reward for your help, only to realize later you've been ripped off.

"Good luck getting any of your money back!

"It's the grift that keeps on giving.

"As a result, fraudsters are getting away with stealing more than $1.4 billion in taxpayer money every single day.

"Every single day, folks, $1.4 billion, are fraudsters are making off with.

"If grift was a government agency, the Department of Fraud would the fifth largest.

"The $521 billion going to fraud every year exceeds the individual annual budgets of the Departments of Veterans Affairs, Agriculture, Transportation, Homeland Security, State, and Justice.

"That's right, folks, fraudsters are being better taken care of than our veterans and our farmers.

"While hardworking Americans are struggling to make ends meet, fraudsters are living large on the loot that they're taking from the Treasury.

"Government grift and graft are endless, and so are the excuses for not stopping it, but the public's patience isn't.

"So who is responsible for allowing fraud to continue?

"Folks, the buck stops right here with Congress.

"Congress decides how much of your paycheck must be sent to Washington and writes the laws determining exactly how every one of those dollars be spent.

"But the haste to spend trillions of tax dollars as quickly as possible is resulting in outrageous amounts of waste, fraud, and abuse.

"From fake child care centers in Minnesota to convicts collecting unemployment checks, fraudsters are blatantly getting away with treating the national treasury like their own personal piggy bank.

"At the request of Majority Leader Thune, I've compiled a comprehensive package of proposals put forth by our Senate colleagues, on both sides of the aisle, to end fraud once and for all.

"Specifically, my Protecting American Taxpayers Act will-

"stop handing out quick cash with no questions asked;

"trigger automatic investigations when there are sudden and suspicion spikes in payment claims;

"ban convicted fraudsters from receiving taxpayer dollars;

"take back the money that was already stolen; and

"send scammers to the slammer.

"If enacted, this bill would save $240 billion.

"The choice is quite simple: Give this money to fraudsters or return it to the taxpayers.

"The bill is now before the Senate, and every day we delay passing it, grifters are getting away with stealing another $1.4 billion.

"And allowing that to continue is the greatest fraud of all."

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