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Author: Rebecca Holland

  • This Minnesota woman stole $360K from Social Security by pretending to be her dead mother for ‘literal decades’ — does this prove Elon Musk is correct about widespread fraud in the system?

    This Minnesota woman stole $360K from Social Security by pretending to be her dead mother for ‘literal decades’ — does this prove Elon Musk is correct about widespread fraud in the system?

    Mavious Redmond of Austin, Minnesota, has pleaded guilty to theft of government funds after more than 25 years of fraudulently collecting Social Security retirement benefits after her mother’s death in 1999.

    Redmond collected more than $360,000 in payments, and allegedly impersonated her mother on several occasions, including forging her signature.

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    Acting U.S. Attorney Lisa D. Kirkpatrick said in a statement, “Redmond stole well more than a quarter-million dollars in taxpayer funds. She scammed social security for literal decades. No more. My office will continue to aggressively pursue the federal programs fraud that plagues Minnesota.”

    Redmond will be sentenced at a later date. But is this an isolated case of daring theft, or an example of a larger trend of Social Security fraud?

    Social Security scams

    According to think tank Brookings, before the DOGE cost-cutting team made a target out of Social Security fraud, fraudulent payouts were an extremely small problem for the SSA.

    “Claims of widespread fraud in Social Security were misleading, with fraud representing just 0.00625% of the annual budget, far less than what private companies like Mastercard or Visa would accept,” said the report dated March 26 of this year.

    DOGE, or the Department of Government Efficiency, run by Elon Musk, is responsible for finding “fraud and waste” across government programs, but with Social Security, he may be looking in the wrong place. The inspector general found in 2021 that over the previous two decades, about $300 million in benefits was paid to Social Security recipients after their deaths. Of that, about one-third was recovered.

    Musk claimed on Feb. 16 of this year that the SSA was still paying benefits to millions of deceased Amercians, using a chart from the SSA’s Numident database. Fact checkers responded immediately to clarify that the table Musk posted on his social media did not provide evidence that payments were going to beneficiaries who were long dead — or to those impersonating them.

    Acting Social Security Commissioner Leland Dudek released a statement following Musk’s post. “The reported data are people in our records with a Social Security number who do not have a date of death associated with their record. These individuals are not necessarily receiving benefits.”

    DOGE and the White House continued to muddy the waters, however, with the president repeating Musk’s false claim two weeks later.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    The success rate of SSA scams

    As reported in The Hill, the SSA receives 80 million calls a year from citizens on its 1-800 number. JD Vance and Musk have both claimed that 40% of those calls, which would total 32 million, are from “fraudsters who steal your direct deposits.”

    The Washington Post reports that only one in every 3,100 calls succeeds — briefly — in direct deposit fraud, accounting for 0.032% of all calls to the 1-800 number.

    They further found that for every successful attempt at direct deposit fraud, five attempts were prevented by SSA staff. However, 7,000 SSA workers were laid off in early April, and more cuts are planned. Critics of DOGE and the administration note that this will mean SSA offices will be severely understaffed, and many will have to close. For seniors with limited mobility issues, or who already face economic barriers, they may have to travel hundreds of miles to visit a Social Security office in the future.

    Current stats on Social Security

    About 69 million people in the US currently receive Social Security benefits. The Old Age, Survivors, and Disability Insurance program reports a payment accuracy rate of 99.7%.

    The SSA further reports that the majority of improper payments paid out actually go to eligible beneficiaries, but are incidents of mistakes or delays, resulting in incorrect payment amounts.

    Their data also show that, contrary to claims from Musk, only 0.1% of Social Security benefits are paid to those over 100 years old. The SSA already has dedicated processes in place to prevent benefits from going to those who have died. They use data from state agencies, funeral home directors, and financial institutions to keep their records up-to-date, as well as comparing whether beneficiaries are using other programs like Medicare.

    So while fraud happens, stories like Mavious Redmond’s are newsworthy precisely because they’re so rare. The millions of Americans who rely on Social Security should not face cuts to their services to prevent a few clever fraudsters from collecting illegal payments.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘Our state … needs the money’: Hawaii lawmakers vote to impose ‘first of its kind’ tourism ‘green fee’ to cover mounting costs of climate change — what the 0.75% hike will mean for tourists

    ‘Our state … needs the money’: Hawaii lawmakers vote to impose ‘first of its kind’ tourism ‘green fee’ to cover mounting costs of climate change — what the 0.75% hike will mean for tourists

    Hawaii has passed a first-of-its-kind piece of legislation that will see a 0.75% increase to the state’s tax on tourists, specially earmarked to raise money for protection against climate change and natural disasters.

    “This legislation, which I intend to sign, is the first of its kind in the nation and represents a generational commitment to protect our ‘āina [land],” Hawaii’s governor, Josh Green, said in a May 2 release. “Hawai’i is truly setting a new standard to address the climate crisis.”

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    In 2023, wildfires tore through Maui, devastating the town of Lahaina, a popular resort town. The new “green fee,” as the release puts it, is in part a response to that tragic fire, which meteorologists and climate researchers attributed to a number of environmental causes.

    “We had a $13 billion tragedy in Maui and we lost 102 people. These kind of dollars will help us prevent that next disaster,” said the governor in an interview referenced by NBC News.

    The new tourism tax

    Hawaii already taxes tourist lodgings at a rate of 10.25% for hotel stays, timeshares, vacation rentals and other short-term accommodations. In addition to this, the counties in the state add a 3% lodging tax and 4.712% excise tax on goods and services.

    The governor feels that the additional 0.75% will likely not deter tourists from vacationing in Hawaii, noting that the tax will go towards efforts like “keep[ing] the beaches perfect” and preserving many of the natural sites that tourists flock to, NBC News says.

    “The more you cultivate good environmental policy, and the more you invest in perfecting our lived space, the more likely it is we’re going to have actually lifelong, committed travelers to Hawaii,” he told the Associated Press.

    NBC reports Green also said he heard from thousands of people across the U.S. after the Maui wildfire, asking how they could help. He says that visiting the state and paying the additional 0.75% tax is a significant way they can.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Response from the hotel industry

    Jerry Gibson, president of the Hawaii Hotel Alliance, has a balanced and hopeful response to the new tax, saying that the industry was pleased lawmakers adopted the tax rate that was initially proposed, and didn’t opt for a higher rate.

    “I don’t think that there’s anybody in the tourism industry that says, ‘Well, let’s go out and tax more.’ No one wants to see that,” he told NBC. “But our state, at the same time, needs money.”

    He also noted in his interview with NBC that using the money to beautify Hawaii’s environment is a silver lining for the tourism industry.

    Climate change in Hawaii

    The state of Hawaii reports that tourism to its coral reefs brings in $385 billion each year. However, rising temperatures are bleaching the reefs at an alarming rate. If carbon emissions continue unchecked, coral reef loss in Hawaii will result in an economic loss of up to $1.3 billion per year by 2050, according to the state’s projections.

    The United States Environmental Protection Agency (EPA) reported in 2016 that Hawaii’s Waikīkī Beach brings in $2 billion per year in visitor spending alone. However, the report noted that shoreline erosion is threatening Hawaii’s beaches and adding to the likelihood of natural disasters.

    The EPA reported that the sea level has risen between two and eight inches on Hawaii’s shoreline since 1960. In the last 100 years, erosion has affected more than 70% of Kauai and Maui’s beaches. This erosion not only destroys natural habitats for animals, but also makes high waves, hurricanes, tsunamis and extreme tides more likely and more devastating.

    A government report from 2023 also noted that sea level rise is projected to cost the state $19 billion in loss of land and structures, not counting the possible damage to infrastructure or the costs of supporting citizens after natural disasters.

    The need to raise funds to protect Hawaii is only growing. The governor has maintained that the state’s 10 million annual visitors should help protect the environment, according to NBC.

    Care for ‘Āina Now, an environmental advocacy group, calculated that there is roughly a $560 million gap between Hawaii’s current conservation funding needs and money actually spent each year.

    NBC says Governor Green acknowledged in an interview that the revenue from the tax, projected to hit $100 million, falls well short of this, but plans to issue bonds to leverage the money it raises.

    How the tax affects tourists

    The new tax hike goes into effect on January 1, 2026. Including all existing taxes, the tax bill for hotel rooms and other short term stays will total nearly 19%.

    NBC reports that the only other major U.S. cities with higher state and local lodging tax rates are Omaha, Nebraska (20.5%) and Cincinnati (19.3%).

    Tourists considering Hawaii for the first time next year may need to revisit their travel budget and plan accordingly. It’s a good idea to get final quotes from your accommodation options before booking to avoid any costly surprises at checkout.

    With Bloomberg reporting that the U.S. will lose $12.5 billion in travel revenue in 2025, creating a 7% decline in visitor spending year over year, it’s unclear whether this trend will continue into 2026.

    Since World Travel & Tourism Council President and Chief Executive Officer Julia Simpson told Bloomberg tourism represents 9% of the U.S. economy, Hawaii’s new tax law has the potential to further the decline of travel revenue — but by how much remains to be seen.

    What to read next

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Dave Ramsey warns Americans to avoid this 1 major mistake when choosing a mortgage — it could end up costing you thousands

    Dave Ramsey warns Americans to avoid this 1 major mistake when choosing a mortgage — it could end up costing you thousands

    Personal finance guru Dave Ramsey is famous for his no-nonsense advice, and also for his insistence on avoiding debt.

    The millionaire advisor started his finance journey at the bottom. He filed for bankruptcy at just 28 years of age, and since then, he’s built an empire advising everyday Americans on how they can ditch their debt and make their first million.

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    Recently, he’s come down hard on 30-year mortgages, offering an in-depth look at how a longer mortgage term can see you paying thousands more in interest than if you choose a 20- or 15-year term. He warned readers of his blog strongly against taking a longer mortgage simply to make monthly payments smaller.

    In his words, “Sure, the 30-year plan gives you a smaller monthly payment. But this longer, drawn-out repayment plan has more of your money going toward the interest each month — which also makes the principal balance go down much slower.”

    How amortization works

    A mortgage is an amortized loan, or one where you make a scheduled payment (typically each month) and this payment is applied to both the principal of the loan and the interest that accrues. The payment goes to the interest first, and anything remaining goes towards the principal. This can mean that a smaller monthly payment will see you paying mostly interest, rather than paying down your principal.

    To demonstrate the difference between a 15-year mortgage and a 30-year, let’s take this example.

    Say you have a $700,000 mortgage on your home and you’ve put 20% down, or $140,000. At a 7% mortgage rate, if you choose a 15-year term, you will pay $6,252.75 per month and your interest payments over the life of the loan will be $230,757.76.

    By contrast, on a 30-year mortgage, your monthly payments will be $4,610.22 and you will pay $406,625.99 in interest. In other words, the extra 15 years will cost you an additional $175,868.23. That’s a quarter of the value of your home, and a serious amount of cash that could be put towards your retirement savings, your child’s education or making improvements to your home.

    Ramsey advised his readers to create their own amortization schedule to ensure they have a clear view of how a long mortgage could see them throwing money away.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Ramsey’s tips for mortgages

    Of course, affordability is a top issue for Americans, and 30-year mortgages are common precisely because it can be difficult to find the extra funds for a large mortgage payment each month.

    In addition to recommending a shorter loan term, Ramsey offered a few more tips for getting the best mortgage for you. Here are his words of advice — plus a few more of our own.

    1. Shop around

    Doing your homework by comparing several different lenders could lead you to a better mortgage rate or amortization schedule for your loan. Don’t feel like you have to go with your existing bank or one that’s recommended to you. If you have time to explore your options, do so as much as you can.

    2. Start early

    If you’re shopping for a new home, preapproval for a mortgage can help you to move faster when closing on a home. This process can also be lengthy. It typically takes 45 to 60 days from starting the application to securing a mortgage, due to federal regulation in the industry.

    3. Be prepared (and prepared to wait)

    Your lender will review your credit history, income and current debts in the process of evaluating you for a mortgage. You may also be expected to foot the bill for appraisals, property inspections, survey fees, title searches and lender reviews.

    Do your research ahead of time to understand what will be required, how much it will cost and the timeline for each step of the process. This can help you manage your stress while you shop for a new home.

    4. Make additional payments

    If you have an existing mortgage, or will have to sign for a 30-year term, do your best to budget for additional payments on your loan. If you can make an extra monthly payment, these typically go towards your loan principal, not the interest. Even a few thousand here and there can help you chip away at your balance, and pay off your mortgage faster.

    5. Refinance your existing mortgage

    Finally, Ramsey suggested that existing mortgage holders could look at refinancing their loans to reduce the term.

    “This would change things like your interest rate, monthly payment amount and amortization period,” he wrote.

    Again, this is a place to shop around and take your time. Look for a lower interest rate and a shorter amortization period, while keeping the monthly payment amounts realistic. If you’ve managed to increase your salary or reduce your debt or expenses since your initial loan agreement, a refinance is a smart move to get you even closer to total debt freedom.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Got $2 million? Here’s how long that nest egg will last you, depending on which US state you live in — you’ll get almost 50 more years in the cheapest state compared to the most expensive

    Got $2 million? Here’s how long that nest egg will last you, depending on which US state you live in — you’ll get almost 50 more years in the cheapest state compared to the most expensive

    A record number of people are reaching retirement age. Each day, more than 11,200 Americans turn 65 — adding up to 4.1 million Americans hitting retirement age per year.

    And yet very few of them feel they have enough saved to last the rest of their lives. The Federal Reserve reports that the reality is that most Americans aged 65 to 75 have approximately $426,000 in their 401(k).

    According to a Northwestern Mutual survey, most Americans believe they’d need closer to $1.46 million for a comfortable retirement.

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    Experts disagree. Suze Orman, for example, called $2 million in retirement savings “chump change”.

    So $2 million is a high bar. But according to a recent analysis from GOBankingRates, it should be enough to last you in all but three states: Hawaii, Massachusetts, and California.

    Here are some states where a $2-million nest egg will make you feel like a millionaire in retirement — and states you may want to avoid if you have a more modest retirement nest egg.

    The rankings

    GOBankingRates ranked all the states based on how long $2 million would last in retirement. They looked at average Social Security payouts and the average annual expenditure for Americans 65 and older (based on the 2023 Bureau of Labor Statistics Consumer Expenditure Survey).

    Then they compared that data to each state’s overall cost of living to determine how many years retirees could make $2 million last.

    The state where it would last the longest?

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Virginia, where a $2-million nest egg would last a whopping 71.93 years. Average annual expenses in that state would be $27,803 a year, after accounting for Social Security income.

    Unfortunately, living in West Virginia post-retirement has some downsides. The state has some of the worst health-care outcomes in the U.S.. Other retiree-friendly states on the list include Kansas, Mississippi and Oklahoma, with $2 million projected to last up to 69 years.

    In contrast, $2 million would not last even half as much in California, Massachusetts and Hawaii, which ranked at the bottom of the list for long-term affordability. The $2-million nest egg would last about 31 years in California and Massachusetts and Hawaii 22.75 years.

    In other words, if you retire at 65 in the Aloha state, your money would likely last until you’re 88, but no longer.

    That may not seem so bad, but this analysis didn’t take into account high health-care costs, so your $2 million nest egg may shrink more quickly than the data suggests.

    Deciding where to live in retirement

    Choosing when, where and how to retire is an individual decision based on multiple variables. Here are some factors to consider as you contemplate areas to live in retirement.

    • Local cost of living, This varies across the country, as GOBankingRates’ analysis shows.
    • Housing supply and prices. This is a major consideration if you’re planning to move states or downsize to a smaller home after you retire. Hawaii, like many states, is facing a housing supply crisis, while Massachusetts and California also report low levels of housing supply, driving up the cost of living in these states.
    • Public services. For example, you will likely need health facilities and use public transportation more as you age.
    • Convenience and amenities. Are there supermarkets, pharmacies and gas stations within an easy distance? Community centres? Restaurants and theatres? As you age, proximity matters, and you’ll be less likely to want to cope with an inconvenience in your living arrangements.

    Whether or not you have $2 million, it pays to be realistic about your fixed income and make wise decisions about where to retire. That way you can ensure that your golden years are comfortable ones.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • California couple was pulled over by Georgia police and had their rental car impounded — why they say the ‘negligence’ of rental company was to blame for putting them in ‘unsafe’ situation

    California couple was pulled over by Georgia police and had their rental car impounded — why they say the ‘negligence’ of rental company was to blame for putting them in ‘unsafe’ situation

    On the lookout for stolen cars, police in Suwanee, Georgia pulled over a couple visiting from California. The driver, Noelle Wilson, wondered what was wrong. She and her partner had just gone to pick up groceries.

    “My heart dropped into my stomach,” Wilson recalls, sharing her story with ABC7 News.

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    The officer asked about the car registration. Wilson explained she was driving an Avis rental.

    She was surprised when the officer told her that the license plate on the vehicle — a black Honda CR-V — was registered to a different car: a white Chevy Malibu.

    He said that’s why he’d stopped her, wondering if she was driving a stolen vehicle.

    It turns out this isn’t the first time this has happened. The officer radioed a colleague who confirmed the problem lies with Avis.

    "All of their brand new cars, they haven’t registered them, and they’ve just been throwing different plates on the cars," the colleague said.

    While the officer on the scene was apologetic to Wilson and her partner, he had to impound their rental vehicle, leaving the couple high and dry.

    They had to order an Uber to get back to their vacation rental, but that proved to be a minor inconvenience compared to resolving the situation that Avis created.

    "Their negligence put us in a very unsafe predicament,” she said of the car rental giant.

    Avis gives couple the runaround

    Wilson spent a week trying to clear up the matter with Avis so she and her partner could get home to California.

    "All I kept getting is, ‘We can’t do anything until the car is returned,’” Wilson recalled. “How do I return this car that’s been impounded?"

    To add insult to injury, Avis was charging Wilson for not returning the vehicle, in addition to maintaining the charge for the full term of her rental even though she didn’t actually have use of the car because it was impounded.

    After that week of getting the runaround, Wilson reached out to ABC7 News, and the outlet reached out to Avis for comment.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    In response, the company reviewed Wilson’s case and a spokesperson confirmed that the incident “occurred as a result of a system error."

    What’s more, the company apologized.

    "Avis Budget Group apologizes for the inconvenience caused to Noelle, and will be refunding the rental fee in full, as well as covering the additional Uber expense incurred as a result of this incident."

    Wilson, however, calls the incident a safety issue, not just one of inconvenience or lost money.

    "I honestly think if maybe we were pulled over by somebody else, the ending on [this] story would have been completely different."

    The officer who pulled the couple over agrees.

    "We ran the VIN, the car’s not even registered with the state," he said in a phone interview with ABC 7. "You’d think big companies like this, this wouldn’t happen."

    Car rentals and consumer protection

    There are a number of consumer protection laws that apply to car rentals, including protections for reserved cars being available on-time and at the right location, pricing for services, disclosure of additional fees, and protecting your rights during damage claims.

    To avoid the kind of situation Wilson for herself in, you may have to do extra due diligence when you pick up a rental car.

    You can verify the vehicle registration number (VIN) online, read your rental agreement thoroughly, and ensure you hold onto any documentation related to the rental.

    The Federal Trade Commission advises car rental customers who find themselves in a situation where they suspect car rental fraud report it to ReportFraud.ftc.gov, or contact the attorney general for their state.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘It’s a scam’: Minnesota mother speaking out after she says Medicaid-funded program falsified documents, billed for 30 hours worth of services she never received — all at taxpayer’s expense

    A Minnesota mother is speaking out after she discovered the Housing Stabilization Services (HSS) had falsified records of her case, allegedly offering her months of help when in reality, she was barely contacted by the agency at all.

    Rachel Lien, a recovering addict who needed support setting up in her new apartment with her son, was referred to Brilliant Minds Services by a friend.

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    Brilliant Minds is, on paper, one of the top service providers for the HSS program. When Lien got in touch with one of their representatives, she explained that she had already found housing, but needed help with paying for things like cleaning supplies and a vacuum.

    Lien waited months for help, eventually receiving a vacuum and nothing else, in spite of her multiple attempts to follow up on her request.

    In the meantime, local news station KARE 11 reports Brilliant Minds staff were falsifying documentation on her case, detailing many visits, apartment hunting on her behalf and other services totalling 30 hours of billable time for the agency.

    “I never met with them,” Lien told KARE 11. “It’s a scam, a total scam.”

    The Housing Stabilization Services program of Minnesota

    Minnesota’s HSS program is one of the first of its kind in the country. This Medicaid-backed program provides support for those looking for low-income housing, help with moving expenses and guidance on transition and housing retention services. The goal of the program is primarily to help older adults and people with disabilities find and keep safe and affordable housing.

    However, the program is unlicensed, and the Minnesota Department of Human Services (DHS) told KARE 11 it currently has 40 active fraud investigations into its service providers. The DHS also reported to KARE 11 that the program became difficult to manage as demand was much higher than anticipated.

    “HSS has surpassed what was initially projected … in terms of the number of individuals enrolled in the program and providers delivering services. This rapid growth has brought additional challenges to build and implement quality assurance and oversight that matches the unforeseen scale of the program," the DHS wrote to KARE 11.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Lien’s false records

    When Lien reported her case to KARE 11 for investigation, they asked her to reach out to Brilliant Minds and request copies of all her records.

    For nearly a month between March and April of this year, Brilliant Minds’ records show that every Friday and Saturday morning, a case worker was helping Lien find housing, a service she never requested and didn’t need.

    Further falsified records show that a case worker allegedly met with her for an in-person intake session on March 8 — the same time she was attending a local group counselling session.

    “Everything listed is a complete lie," Lien told KARE 11.

    The news station attempted to contact Brilliant Minds several times for comment, but found their phone line had been disconnected and that their office was dark and locked during their regular business hours.

    They finally responded through email, saying, “All services rendered — both direct and indirect — were thoroughly documented in our Electronic Health Record (EHR) system … The client was discharged after approximately four weeks due to the client’s continued lack of engagement, and as such, no further billing occurred beyond that period.”

    However, Lien provided KARE 11 with proof of her continued attempts to contact her case worker through texts and email.

    Following the news station’s report, the DHS increased the risk level for HSS service providers from “limited” to “high” risk. The providers will now be subject to unannounced drop-in visits from DHS personnel and other measures to ensure their compliance.

    The burden on taxpayers

    In Lien’s case, KARE 11 reports her falsified records amount to a $2,060 bill — funded by local taxpayers — and all she has to show for it is a vacuum cleaner.

    Costs for the HSS program have risen exponentially since its inception in 2020. Then, the program cost approximately $3.25 million. In 2024, the cost was almost $92 million, and Brilliant Minds submitted over $1 million in claims.

    What can vulnerable communities do?

    Though each state approaches housing-related services for Medicaid beneficiaries differently, clients of the programs can ask for full records of their case files if they feel their case is being mishandled, or if they’re facing long wait times for responses like Lien.

    The Minnesota DHS also lists a number of other housing assistance programs that low-income residents can take advantage of.

    And at the federal level, the Housing Choice Voucher Program allows individuals to apply for a subsidy that covers part of their rent, and is paid directly to their landlord.

    What to read next

    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘End the excuses’: California Gov. Gavin Newsom calls on cities to ban homeless encampments as he escalates crackdown — but here’s why critics are calling it ‘backwards’

    ‘End the excuses’: California Gov. Gavin Newsom calls on cities to ban homeless encampments as he escalates crackdown — but here’s why critics are calling it ‘backwards’

    California Gov. Gavin Newsom has introduced a model ordinance, calling on state municipalities to ban tent encampments on public property.

    “There’s nothing compassionate about letting people die on the streets,” Newsom said in a press release on May 12. “Now, we’re giving [local leaders] a model they can put to work immediately, with urgency and with humanity, to resolve encampments and connect people to shelter, housing and care.”

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    Following the model ordinance would make it illegal “to construct, place or maintain on public property any semi-permanent structure.” Furthermore, it would be unlawful to “sit, sleep, lie or camp on any public street, road or bike path, or on any sidewalk in a manner that impedes passage.” Unhoused Californians are also restricted from camping in the same spot on public property for more than three days or nights in a row.

    In addition, prior to any enforcement, officials would be required to provide notice and “make every reasonable effort to identify and offer shelter” and “offer supportive services” to persons living in the encampment.

    The effort will in part be backed by $3.3 billion in new funding available to communities for housing and treatment options for the most seriously ill and homeless in California.

    Homelessness in the Golden State

    As the largest state by population, California also has the largest unhoused population. According to data from the U.S. Department of Housing and Urban Development, 187,000 people were homeless in California last year — accounting for nearly one quarter (24%) of the national total. Two-thirds of the state’s homeless were also unsheltered.

    On the bright side, the amount of homeless in California only increased 3% between 2023 and 2024, while it grew 18% across the country in the same time period.

    Read more: Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich in America — and that ‘anyone’ can do it

    Despite the high number of homeless in the state, California remains one of the richest in the U.S. Median household income in the state was an estimated $95,521 in 2023, according to U.S. Census Bureau data from the American Community Survey, compared to $77,719 nationwide. But the high cost of living, including real estate and rental prices in major cities, has kept many low-income earners from securing affordable housing in California. The state’s minimum wage is $16.50 per hour, while Zillow reports the average rent price to be $2,400 per month as of May 18.

    Newsom can’t force municipalities to adopt the new model ordinance, however, some local leaders may be on board. San Francisco Mayor Daniel Lurie previously vowed to clean up city streets, while San Jose Mayor Matt Mahan has proposed arresting homeless people who refuse housing.

    Criticisms of Newsom’s plan

    Some officials are skeptical of the initiative, and have accused the government of exaggerating the state’s funding of programs to tackle homelessness. In the governor’s press release, it’s stated that Newsom had provided communities $27 billion to address the crisis.

    “That’s just not true. More than half of it went to housing, not homelessness,” Jeff Griffiths, Inyo County Supervisor and California State Association of Counties President, said in a statement. “How much of that housing has actually been built?”

    Jesse Rabinowitz, Campaign and Communications Director for the National Homelessness Law Center, called the approach “backwards” and told The New York Times “we will continue to push for real solutions to homelessness, like housing and services.”

    Newsom did not mince words when he placed the responsibility at the feet of local authorities.

    “The state has changed, and so too now must the cities and counties,” Newsom said during a press conference. “It is time to take back the streets. It’s time to take back the sidewalks. It’s time to take these encampments and provide alternatives. And the state is giving you more resources than ever. And it’s time, I think, to just end the excuses.”

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • Trump’s benchmark payment rate increase for insurance companies? It comes at a cost, both for insurers and Americans — here’s the skinny for older adults in the Medicare Advantage plan

    Trump’s benchmark payment rate increase for insurance companies? It comes at a cost, both for insurers and Americans — here’s the skinny for older adults in the Medicare Advantage plan

    Insurance companies are cautiously optimistic about the Trump administration’s policies for their industry: insurers saw their stocks soar in early April when the federal government announced a record 5.06% benchmark increase to Medicare Advantage plans.

    That is more than double the rate (2.23%) proposed by the Biden administration in January 2025, which was seen as a budget cut by the insurance industry. The Trump administration increase will amount to $25 billion for insurers like Humana and UnitedHealthcare, which participate in the revitalized Medicare Advantage program.

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    Advocates highlighted that program costs have seen margins fall sharply in the insurance sector. Enrolled older adults have used more care than anticipated since the pandemic, and many insurers have already cut benefits, exiting some markets to remain profitable. The increased funding is expected to make health insurance companies a haven on the stock market during an unpredictable and volatile time.

    Lo and behold, both Humana and UnitedHealthcare’s first quarter earnings caused the companies’ stocks to drop precipitously on April 16.

    Adding to the pinch, the Trump administration also enacted changes that will make it harder for insurers to inflate their profits. These changes are expected to dull the shine of the increased funding and may make companies even more reluctant to pass on savings to customers.

    Criticism of the plan

    The Medicare Advantage program has not been without its critics since its inception in the Balanced Budget Act of 1997.

    The program uses taxpayer dollars to pay private insurers for coverage for older adults and those with disabilities. Medicare Advantage was introduced by Republican Representative John Kasich in the omnibus, and the Democrats have been critical of using public funds to pay private companies through the program.

    How much the federal government spends on Medicare Advantage influences its monthly premiums and plan benefits. There is no baseline of coverage across the different private insurers who participate in the program.

    Pundits have said the Biden administration was skeptical of the program, and the low rate of increase proposed for 2026 by Biden was seen as a cut to funding, given the rate of inflation.

    Despite stricter rules enacted by the Trump administration on billing practices, the Department of Justice has launched a civil fraud investigation into UnitedHealthcare’s practices. Critics have looked askance at Trump for continuing to pour taxpayer money into an industry mired in legal woes.

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    Trump’s policies and their impact on older adults

    There is little evidence, however, that Trump’s policies will be a big win for the average American. While a boost in funding might mean savings will be passed on to clients, it seems more likely that the cash injection will be used to rally the insurers’ market performance.

    “Though required by law, this excessive increase in payments to Big Insurance — when evidence demonstrates they are already being overpaid — demonstrates the crucial need for Congress to fix the way payment rates for MA insurers are calculated,” pundit Rachel Madley wrote on her Substack Health Care Un-covered. “Sadly, analysts expect the extra payments Big Insurance will get in 2026 will go to increasing profit margins, not increasing benefits or availability of care.”

    With Medicare Advantage enrollment already on the rise, other analysts predict that, following this announcement, even more Medicare-eligible seniors may elect to join the program in 2025 and 2026. Only time will tell if the $25 billion is used to improve profits or to increase benefits for a growing number of seniors.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • St. Louis tow lot federal investigation reveals systemic ‘corruption within the city’ and $5 million worth of missing vehicles — here’s why the story was ‘swept under the rug’ for years

    St. Louis tow lot federal investigation reveals systemic ‘corruption within the city’ and $5 million worth of missing vehicles — here’s why the story was ‘swept under the rug’ for years

    Almost four years after longtime civil servant and whistleblower Angelica Woods first spoke to local news station KSDK about the corrupt practices she witnessed after a year working in the city’s tow lot, the once-buried report has finally come to light.

    Woods was a dispatcher for the tow lot, and in that time witnessed city staff setting aside vehicles for friends and family, then pocketing the payment for themselves. Her suit, filed in 2021, also alleged that these employees forged paperwork to cover their tracks.

    At the time, Woods told KSDK, “People pretty much made up rules as they went."

    Woods was fired from her role for speaking out, though she had worked for the city in various roles for 23 years at the time of the suit. Now in 2025, she has finally won the modest sum she sued the city for, and has paved the way for two other city employees to come forward with their stories.

    "Because a lot of cash was being taken under the table here, it was a lot of corruption within the city," Woods said about the way she and other city staff were treated for trying to do the right thing.

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    Audit report on the tow lot

    A city audit was quietly released in March of this year, finding that 568 of 1,133 vehicles (that’s 50%) were missing from the inventory — accounting for nearly $5 million in missing city revenue. The audit also found that more than $80,000 in cash was unaccounted for, and 33% of tow tickets were missing, incomplete or had incorrect amounts listed for vehicle sales or value.

    Newly-elected Mayor Cara Spencer responded to the situation, stating, "This audit … should not have been swept under the rug."

    "A lot of the employees was taking the cars and benefiting for themselves," said George Hooker, another longtime city employee who previously worked as the auctioneer for the tow lot.

    In spite of the fact that Hooker signed paperwork that he would be protected as a government whistleblower, he still faced consequences.

    "They promised me that I was protected under it, but I still got moved," he said. "Betherny is the one that transferred me. She transferred me because I was complaining to her about what was going on down here."

    Former Streets Director Betherny Williams transferred Hooker to the city’s refuse division, and he claims Williams buried him in difficult work assignments as a retaliation.

    Systemic corruption

    "Once I started ruffling feathers, they got me out of there pretty quickly," said James Mundy, another city employee who briefly served as commissioner of the tow lot. He was also transferred for trying to speak up to his superiors about what he saw.

    Speaking to KSDK in 2021, Lynette Petruska, Angelica Woods’ attorney, said, "What the city is really doing here is they’re sending a message loud and clear. We’ve got this whistleblower protection on paper, but don’t do the right thing and don’t blow the whistle because if you blow the whistle, you’re going to pay.”

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    The city’s audit from March recommends that payments at the tow lot be converted to online systems instead of the current cash payments — a recommendation that seems long overdue in 2025. The audit also recommends implementing a digital system to track all records, which also raises questions about why city staff have been using paper-based methods for so long. The city’s Comptroller Donna Baringer forwarded the audit findings and additional evidence collected to the federal prosecutors investigating the case.

    Impact on St. Louisans

    KSDK reported in 2021 that a special audit from that time found up to 150 cars appeared to leave the tow lot for free between 2018 and that year, a figure that did not include stolen cars that were released to their owners. Almost $78,000 in tow and storage fees were also waived for no reason.

    However, a number of citizens came forward after the news station broke the story and claimed that their stolen cars were not retrievable from the tow lot for free — despite a city ordinance that allows owners to collect their stolen vehicles without a charge within a 72-hour time frame.

    Protection for whistleblowers

    According to the U.S. Government Accountability Office, the federal government alone loses an estimated $233 to $521 billion to fraud each year. These numbers are based on an assessment covering 2018 to 2022, and the GAO reported that “no area of the federal government is immune to fraud.”

    However, no matter which level of government a civil servant works for, the US has laws in place to protect whistleblowers. Both government employees and private sector employees can find the info they need on whistleblowers.gov to file a complaint and understand their rights.

    When whistleblowers file a complaint, the government site recommends keeping a paper trail of related communication with your employer, including emails, meeting notes, etc. The Office of the Inspector General also maintains a hotline where federal employees can report corruption. City and state-level OIGs are also the first line of defense if you have evidence of bribery, conflicts of interest, or other criminal activity.

    Finally, if you are aware of a dangerous situation in your workplace, such as an employee who is retaliating against others using physical violence or threats of violence, be sure to call the police right away to report the crime.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

  • ‘It’s not safe’: This Houston couple says their brand-new home in a gated community has become a mold-ridden uninhabitable nightmare — now they’re left in an ‘unfathomable’ position

    ‘It’s not safe’: This Houston couple says their brand-new home in a gated community has become a mold-ridden uninhabitable nightmare — now they’re left in an ‘unfathomable’ position

    When Angela and Terry Taylor of Houston moved into a four-story home in a gated community in 2020, they thought it would be a safe, low-maintenance environment where they could ease into retirement.

    Instead, things started to go wrong almost immediately. The Taylors noticed condensation on the windows and doors. Angela began to feel ill.

    They soon identified the problem: mold. A doctor discovered mold in Angela’s sinuses and told her it was the highest level he had seen in 32 years.

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    Then they checked out the house. Hundreds of thousands of mold spores per cubic meter, on the walls, beneath stucco finishes — even their furniture.

    "It’s not safe for anybody to be there," their attorney Ernest Freeman told KHOU 11.

    The Taylors have moved into an apartment, carrying the costs of the apartment and their new home at the same time.

    "We’re trying to retire one of these days and these are some of the most expensive days of our lives," said Terry Taylor. "It’s unfathomable that we’re in the position we’re in."

    Now they’re suing the home builder, Pelican Builders, and sharing their story to alert other people to the dangers.

    Mold takes a physical and financial toll

    "We worked hard, raised our kids and this is our time, and I’ve gotten sick," Angela said. "It’s just a nightmare."

    The couple said they initially tried to work with the builder on a solution.

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    Pelican Builders’ lawyer Ben Westcott said that the company offered to repair the Taylors’ home at no cost in 2022. He said the Taylors’ decision not to take the offer led to further degradation of the property.

    But Freeman and his clients note that the builders’ offer did address underlying structural issues that caused the mold growth in the first place.

    Mold grows when houses aren’t properly sealed. Warm air fills the inside of the walls, forced down from the attic. Cooler air from the other side of the wall makes condensation form, causing mold to grow rapidly.

    What you can do if your new home has serious structural issues

    If you, like the Taylors, find structural problems in a new-build home, there are several avenues you can pursue to get help.

    First, review your contract and the builder’s warranty. This type of warranty is standard for new homes, and is also enforced when any extensive remodels to your existing home take place. It covers permanent parts of your home, including concrete floors, plumbing, electrical work and the like.

    You may also have a home warranty, which covers replacements or repairs. This can include appliances or air conditioning systems, and servicing for these items.

    If your warranty covers the repairs you need, you should have no trouble enforcing the terms of your agreement with your builder.

    If the issues are not part of the warranty, but are so significant that the property is uninhabitable, your builder should also make a good faith agreement to repair the damage and underlying issues with the home.

    If your builder refuses to cooperate, you can file a complaint with your state’s contractors licensing board. The specific rules and regulations vary by state, but each board can pursue disciplinary action against a contractor who fails to uphold a reasonable standard for their work.

    Finally, you can consider hiring a lawyer. Look for a representative who has handled similar cases in the past, and can help you understand the laws in place in your state to protect homeowners.

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    This article provides information only and should not be construed as advice. It is provided without warranty of any kind.