Minnesota’s new paid leave law is set to take effect January 1, amid growing concerns that the program could be vulnerable to fraud in a state already reeling from a massive welfare scandal.

The legislation, signed by Governor Tim Walz last year, will provide Minnesota workers with up to 12 weeks of partially paid leave annually to care for newborns or sick family members, plus another 12 weeks for personal illness recovery. Benefits will be capped at 20 weeks per year for those who utilize both provisions.

“Everyone deserves paid time away from work, to heal, to grow, and to live,” Lt. Governor Peggy Flanagan said at the 2023 signing ceremony. “This time is not optional. It’s not a nice-to-have. It’s a must-have if we truly are going to be the best state in the country to raise a family.”

The program will operate independently from existing federal and Minnesota parental leave policies, though it can run concurrently with them. A newly established agency, the Minnesota Department of Employment and Economic Development, will oversee the program with more than 400 full-time employees.

Critics are voicing serious concerns about the program’s vulnerability to fraud, especially as Minnesota continues grappling with what prosecutors estimate could be a $9 billion fraud scandal involving nonprofit and welfare programs.

“In the middle of a massive fraud scandal, Minnesota Democrats are bragging about creating a new entitlement just as ripe for abuse,” wrote Red State contributor Bonchie on social media. “The scheme involves businesses forced to pay a premium, with the state paying workers for 20 weeks of ‘paid leave.’ Are Minnesotans tired yet?”

Bill Glahn, policy fellow at the Center of the American Experiment who has extensively covered fraud issues in Minnesota, told Fox News Digital he describes the new program as “the next billion-dollar fraud.” Glahn explained that Republicans had previously refused to consider similar proposals when they controlled the state House, but Democrats pushed the legislation through after gaining full control, without any Republican support.

A key criticism centers on the decision to create an entirely new state-run bureaucracy rather than utilizing private insurance companies to administer the program. Glahn warned the system could be exploited through various means, including fake companies, phantom employees, minimal contributions followed by large benefit claims, and multiple people claiming paid leave to care for the same relative without effective oversight.

“This is going to be just like all these Medicaid programs that they start de novo, where they say, ‘Oh, we’ll probably have two or three million dollars worth of claims on this,’ and then it quickly balloons up to 100, 200 million,” Glahn said.

He also noted that because claims are tied to private homes rather than centralized locations, detecting fraud becomes nearly impossible. Individuals could potentially work briefly to qualify for benefits, then repeatedly claim extended periods of paid leave, effectively receiving payment for an entire year while working only a fraction of that time.

Dustin Grage, a Townhall columnist who has commented extensively on Minnesota fraud issues, echoed these concerns: “When you build a multi-billion-dollar state benefit program with weak oversight, fraudsters line up. We’ve already seen what happens in Minnesota. The paid family leave system will be a magnet for abuse.”

State officials defend the program’s integrity. A spokesperson for the Minnesota Department of Employment and Economic Development told Fox News Digital that fraud assertions are “not based in fact” and emphasized that the program has launched with “strong systems in place to verify identities and work histories and to detect and prevent fraud.”

The spokesperson detailed several safeguards, including requirements for appropriate professionals to certify each leave request. “For example, a medical provider must attest that medical leave is necessary and also must verify who they are. Identifications are verified through licensure information, certification that is required on every application,” the spokesperson said.

Employers will also play a role in prevention efforts, receiving notifications about every leave application with opportunities to review information and report concerns.

Despite these assurances, the scale of Minnesota’s ongoing fraud scandal—which reportedly affects at least 14 different programs—has created deep skepticism about the state’s ability to protect any new benefit program from similar exploitation.

“It’s going to be just like every other program,” Glahn warned.