For the first time in more than a year, participation in the Supplemental Nutrition Assistance Program (SNAP) has dipped below 40 million people. Yet fraud concerns and eligibility loopholes remain widespread—particularly in Minnesota, as one retired millionaire’s story demonstrates.
Minnesota Millionaire Exposes Loophole
Minnesota’s income-only eligibility rules have created room for millionaire Rob Undersander to become eligible for SNAP benefits because his retirement income falls below the threshold.
He told Fox News Digital the system is “fraud by design” because he qualified based solely on income rather than assets. Undersander ended up donating all the money and benefits he received to charity.
“I strongly support SNAP benefits for truly needy individuals, but when we have nearly one in seven Americans receiving food support in the wealthiest nation on earth, with historically low unemployment rate, something is wrong,” Undersander said.
Policy experts say his experience highlights a flaw embedded in federal SNAP rules for decades. Rachel Sheffield, research fellow in welfare and family policy at The Heritage Foundation, told The Daily Signal, “A loophole that has been part of SNAP for more than two decades now allows people applying for SNAP to bypass asset limits.”
“While most people on SNAP don’t have the amount of assets Mr. Undersander has, his case shows how this loophole undermines the intent of the program and fails to ensure that benefits are going to those truly in need,” she added.
Minnesota’s SNAP System Under Attack
Minnesota’s SNAP policies have faced scrutiny before. KSTP’s 5 INVESTIGATES revealed the Minnesota Department of Human Services “repeatedly reported incorrect information” about SNAP to the federal government.
One federal report falsely showed a 173.9% spike in SNAP issuance between 2020 and 2021 after the state double-counted Pandemic EBT funds.
In December 2025, the agency said it had begun discussions about resubmitted corrected data, KSTP reported.
Nationwide Fraud Concerns
Agriculture Secretary Brooke Rollins said that “the Minnesota case is just one of many examples.” She explained that although SNAP participation recently fell, fraud remains widespread, including an estimated half a million people receiving benefits multiple times, about 200,000 cases involving stolen Social Security numbers of deceased individuals, and prior instances of illegal immigrants accessing the program.
“Minnesota, California, [and] New York are ground zero for massive fraud,” Rollins said. “But we’re working on it, and I think we’re going to make great progress in the years to come.”
The Trump administration has emphasized removing ineligible recipients and tightening oversight. Rollins said that “since the president was sworn in, we’ve moved 3.3 million people off of food stamps into work and into a better life of dignity.”
The SNAP Fraud Reporting Act, introduced this month by U.S. Rep. Dave Taylor, R-Ohio, and co-sponsored by several Republican lawmakers, would require every state to submit detailed reports on past and ongoing SNAP fraud cases to the U.S. Department of Agriculture.
As federal officials continue reviewing Minnesota’s data and broader program vulnerabilities, the SNAP debate is likely to intensify. State and federal governments face mounting pressure to ensure the program serves those it was originally designed to help.
