In a massive, long-overdue crackdown on government waste and rampant abuse, the Department of Health and Human Services (HHS) has officially put all 50 states on notice.

As The Gateway Pundit previously reported, a federal HHS Office of Inspector General audit found Colorado made at least $77.8 million in improper fee-for-service Medicaid payments for Applied Behavior Analysis (ABA) therapy for children diagnosed with autism in 2022-2023 alone.

Every single one of the 100 sampled enrollee-months contained at least one improper or potentially improper claim. Auditors flagged another $207+ million in potentially improper payments.

Similar horror shows hit Wisconsin ($18.5 million improper), Indiana, and Maine, with confirmed improper payments across audited states totaling around $198 million (roughly 31% of the spending reviewed in those samples).

The Department of Homeland Security’s Homeland Security Investigations (HSI) has arrested two Muslim women in Minnesota for defrauding American taxpayers of more than $21 million through a brazen scheme targeting the state’s autism services program.

Now the feds are going nationwide.

CMS has issued a direct call to all 50 states to re-evaluate high-risk ABA providers, remove illegitimate ones, and report back with plans to clean house. States have tight deadlines — 10 business days to respond and 30 days for a full strategy.

This comes alongside the new AERO initiative (Audit Enforcement and Risk Oversight), which is using AI and aggressive follow-up to finally hold states accountable for years of ignored audit failures and chronic noncompliance across HHS programs.

The spending numbers are insane and demand scrutiny:

• In North Carolina, Medicaid ABA spending surged from roughly $1.9 million just five years ago to over $505 million in 2025 — with projections blasting past $1 billion soon. Some reports flag increases in the thousands of percent.
• Across eight states with available data, combined Medicaid autism therapy spending exploded from $347 million to over $2.2 billion in recent years — a 561% increase.
• Minnesota saw one of the most grotesque spikes: from under $700,000 in 2018 to $342+ million by 2024 in its EIDBI autism program.

HOLY SMOKES. HHS is now launching a wide-scale AUDIT of all 50 states’ taxpayer AUTISM programs due to rampant fraud

North Carolina data just dropped: +11,000% PERCENT SURGE IN AUTISM BILLING

It was NOT just Minnesota!

PRESIDENT TRUMP ON FRAUD: “You haven’t seen… pic.twitter.com/WhdeVNhTXU

— Eric Daugherty (@EricLDaugh) May 28, 2026

The post MASSIVE FRAUD PROBE: HHS Auditing All 50 States Following Shocking, Nationwide Explosion in Medicaid Autism Billing — Taxpayer Dollars Drained by ‘Bad Actors’ appeared first on The Gateway Pundit.