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Sen. Joni Ernst, chairwoman of the Senate Small Business and Entrepreneurship Committee, stated that the federal government is losing $1.4 billion every day to fraud and abuse, draining taxpayer funds across multiple programs.
In remarks highlighting recent investigations, Ernst pointed to specific cases of misconduct. These include a social media influencer who allegedly used platforms to recruit participants in a small business scheme, defrauding the system of about $3.5 million. Another involved a Department of Veterans Affairs representative accused of soliciting bribes from disabled veterans in exchange for processing disability paperwork.
Ernst credited whistleblowers and investigators, including those who uncovered issues in Ohio’s Medicaid program and Minnesota’s Department of Human Services, for bringing attention to these problems. She noted that some whistleblowers faced retaliation after raising concerns.
“We lose $1.4 billion every single day. That is taxpayer money,” Ernst said. She added that she has worked on waste, fraud, and abuse issues for 12 years. Cases are being referred to the Office of Inspector General with the goal of prosecution and recovery of funds.
Ernst emphasized the role of oversight in exposing bad actors within federal agencies and programs. “We have all kinds of bad actors,” she said, while expressing gratitude for efforts that have spotlighted the issue.
On the legislative front, Ernst expressed confidence that Republicans would advance funding for immigration enforcement. She indicated that a package to fund ICE, Customs and Border Protection (CBP), and related security efforts could reach President Donald Trump’s desk by the end of the week, describing it as doable. She also voiced support for a potential Reconciliation 3.0 package before the August recess, with defense spending as a primary focus, though other items would be considered case-by-case.
Sen. Bill Hagerty, R-Tenn., reinforced the push for border funding, stating that one senator’s opposition could not block the measure. “We need to fund ICE. We need to fund the Department of Homeland Security fully,” Hagerty said, noting that Republicans would not allow defunding of these priorities.
The discussion also touched on President Trump’s influence in recent primaries. Trump-backed candidates saw success, including in Kentucky where Rep. Andy Barr won a GOP Senate primary to succeed Senate Minority Leader Mitch McConnell. Ernst highlighted the importance of quality candidates and Trump’s sway with Republican voters. She predicted strong midterm performance for Republicans, citing the party’s focus on safety and security.
Ernst serves on the Armed Services Committee and stressed the need to fully protect the nation through adequate defense resources.