05/06/2026
There's been a lot of attention around fraud recently—stories out of Minnesota and Ohio, and a recent discussion with Luke Rosiak on the Michael Knowles' show.
First—this type of reporting matters. Independent journalism plays a critical role in uncovering real issues, and these cases deserve attention.
At the same time, context matters.
Across major, ongoing programs:
Fraud is roughly ~$20B annually
About 0.3% of federal spending
Typically well under 1% of large program outlays
High-profile cases tend to come from periods where controls were weaker (pandemic-era programs being a good example). They're real—but not always representative of the system as a whole.
Bottom line:
The system isn't perfect, but it's not structurally broken. Issues get exposed, controls tighten, and the system adapts over time.
For investors, separating headline risk from reality is what matters. https://www.raymondjamesconnect.com/aS2q3E