Three Examples of the “Theft Industrial Complex” in 2025

By Larry Behrens

Many Americans are watching in amazement and horror at the serious allegations of government fraud and waste. These are not small clerical errors or isolated mistakes. It’s about taxpayer dollars — on an enormous scale — siphoned away from the people and programs they were supposed to help. And being stolen from those who are footing the bill.

The most recent example is in Minnesota, where an independent journalist uncovered seeming widespread abuse in childcare and health programs, including Somali-run daycare operations accused of billing the state for services never provided. Reports suggest the potential total loss may reach into the hundreds of millions — if not more.

As Americans prepare to file their taxes in April, it is infuriating to watch billions of dollars treated so casually by the same politicians who constantly tell us they care about “affordability.” At some point, the culprits must be identified and held to account because the modern left has created a Theft Industrial Complex. That’s where taxpayer money is funneled to political allies, activist organizations, nonprofit networks, and consultants who laugh all the way to the bank while escaping accountability

Here are just three glaring examples:

Minnesota’s Childcare Fraud

The Minnesota daycare scandal is a heartbreaking example. Allegations describe fraudulent billing schemes, fake attendance records, and nonexistent children bused as financial vehicles to extract money from taxpayers. The money was supposed to support real families and real children. Instead, much of it may have gone to fraud, abuse, and personal enrichment.

Gavin Newsom’s Rail to Nowhere

California offers another example. Governor Gavin Newsom wants to continue to pour staggering amounts of taxpayer funding into a high-speed rail project that remains years behind schedule, way over budget, and nowhere near completion. After 16 years and $15 billion spent, the proposed 800-mile rail has only completed 119 miles. The Trump Administration correctly cut the remaining $4 billion. Families don’t see improvement, affordability, or accountability. What they see is a political class insisting taxpayers keep writing checks while producing very little in return.

Climate Cash and Political Allies

Then there is the Biden administration’s climate agenda. Internal records and congressional findings reveal that political activists — including figures such as John Podesta — played influential roles in steering major policy decisions like the pause on natural gas export approvals. Potentially to boost financial gain for family members. At the same time, billions in federal climate grants have been awarded to organizations tightly connected to Democratic operatives. One group linked to Stacey Abrams even dissolved after congressional scrutiny intensified. Once again, the people benefiting were not working-class families — they were political insiders and aligned institutions.

The total sum of these three examples is north $18 billion dollars in questionable or wasted spending. And that’s only a snapshot of what has become routine.

It Was Never Really About Affordability

The next time you hear a leftist politician claim they are fighting for affordability, fairness, or working families, it is worth asking a simple question: why does the money so often seem to end up with political allies, activist networks, and government insiders instead of the people they claim to champion? That’s the Theft Industrial Complex at work. Taxpayers provide the funding. Political machines reap the rewards. Ordinary Americans are expected to quietly pick up the tab year after year.

As another tax season approaches, maybe it’s time to demand leaders who treat taxpayer dollars like a trust — not a slush fund. Because whenever the left starts talking about climate spending, childcare expansion, or new “equity” initiatives, the pattern is becoming impossible to ignore. They’re not fighting for our families. They’re fighting for our money.

Larry Behrens is an energy expert and the Communications Director for Power The Future. He has appeared on Fox News, ZeroHedge, and NewsMax speaking in defense of American energy workers. You can follow him on X/Twitter @larrybehrens.

This article was originally published by RealClearEnergy and made available via RealClearWire.

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Tom Halla
January 7, 2026 6:21 am

A good British term is quango—quasi autonomous non governmental organization. These captive groups are a way to put one’s wife or cousins on the payroll.

Russell Cook
Reply to  Tom Halla
January 7, 2026 11:35 am

Indeed true. After the longest-serving head of Greenpeace USA left Greenpeace – because apparently not enough money was there – he has every appearance of bringing his #2 GP USA administrator along for the ride to where the real money seems to be available for the taking, over $30 million now, from what I can find of public-available IRS 990 documents.

Reply to  Russell Cook
January 7, 2026 4:51 pm

Anyone can look:

Search for tax exempt organizations | Internal Revenue Service
You can use the online search tool to find Form 990 series returns, Form 990-N (e-Postcard), Pub. 78 data, and other information about tax exempt organizations. You can search by employer identification number or organization name and download data sets.

Russell Cook
Reply to  Tombstone Gabby
January 7, 2026 6:24 pm

Yes. I have. It’s why I updated my count of the man’s cash pile just less than a month ago. The people who don’t do this are the reporters in the traditional news media.

Jimmy Broomfield
January 7, 2026 6:24 am

“…After 16 years and $15 billion spent, the proposed 800-mile rail has only completed 119 miles. …”
Would you please show evidence where there is 119 miles completed. I have never heard this before.

Gregory Woods
Reply to  Jimmy Broomfield
January 7, 2026 6:50 am

They are completed – virtually….

Jimmy Broomfield
Reply to  Gregory Woods
January 7, 2026 7:35 am

Yes.

https://news.sky.com/story/california-mocked-over-billion-dollar-bridge-to-nowhere-13129715
The Fresno River Viaduct, otherwise known as “The Gavin Newsome Memorial Bridge”

SxyxS
Reply to  Jimmy Broomfield
January 7, 2026 8:00 am

Completed by California/Ukraine definition – they did some basic stuff to make it look presentable for the layman, while most of the stuff does not exist(just as most Ukraines heavy fortifications only exist on paper).

Then look at the timeline when the “finished” part will go officially online,
double that time and you’ll have the real starting date – and even then you will realize
that it only works at the most basic levels and that the original construction costs have trippled by then.
By 2040 they will most probably drop the rest of the plans.

The real crazy thing is that the track is very linear, therefore it should be easy,inexpensive and fast to built.

And the craziest and most Californian thing is.
The french SNCF dropped out of this project in 2011 in favor of Africa(Morroco) because, and this is the official statement ” California is more politically dysfunctional”

Denis
Reply to  SxyxS
January 7, 2026 8:14 am

Google AI says that there is yet to be any rail installed. Rail installation is “planned” to begin in 2026.

SxyxS
Reply to  Denis
January 7, 2026 12:02 pm

So it won’t happen before 2028.(but they’ll lay a mile for PR stunts)

The funny thing is that California is a one-party state and the wealthiest state of the most powerful country, yet they somehow managed to be more dysfunctional than an African country.

Only the left can deliver such an insane outcome..

And just imagine Californias state with the wealth of an African country(which is basically Net Zero).
All hell would break lose there as these coddled morons with 0 real life skills can not survive without a rich big mommy state.

Sparta Nova 4
Reply to  SxyxS
January 7, 2026 10:54 am

I was unaware of and have never seen any reports concerning “Ukraine’s heavy fortifications.”

I will never comprehend why you insist on bringing unrelated topics into the conversation.

SxyxS
Reply to  Sparta Nova 4
January 7, 2026 11:47 am

An obvious large scale grift is an obvious large scale grift, and in both cases it’s your American taxpayer money, not mine.
It’s about the Industrial Theft Complex and
” to launder money”(Julian Assange)
I hope you get the analogy.

And the heavy fortifications in Ukraine.

Either you live under a rock or it has not been talked about at Fox News and other MSM’s.
Just last month there was a new announcement.
But the mulitilayer (3 main iirc) is common knowledge.
It was called the most formidable fortification since WW2,
a 1.1 billion fortress with hundrdds of miles of extraordinary blablabla.

Anyway – after the first layer was broken, the troops pulled back and realized the rest were just basic trenches.
Nothing that was said to be there was there.
And that’s why the kill ratio went from 10:1 to about 30:1 (according to Col. MacGregor).
But i guess you haven’t heard about that neither, as this is not something MSM touches.

Sparta Nova 4
Reply to  SxyxS
January 8, 2026 5:37 am

I choose to not read and believe Russian propaganda.
You obviously find great entertainment value in doing so.

Scarecrow Repair
Reply to  Jimmy Broomfield
January 7, 2026 8:59 am

I have always heard that ZERO miles of track have been laid.

Reply to  Scarecrow Repair
January 8, 2026 12:43 pm

That is correct!

Alan M
Reply to  Jimmy Broomfield
January 7, 2026 9:13 am

Better than HS2 here in Britain

Sparta Nova 4
Reply to  Jimmy Broomfield
January 7, 2026 10:52 am

“…After 16 years and $15 billion spent, “

Sounds like something from The Boob Tube (movie).

Reply to  Jimmy Broomfield
January 8, 2026 12:43 pm

There is not even one foot of track laid. The “completion” is most likely engineering designs and a few structures, but no track.

January 7, 2026 6:25 am

US population has grown about 30% over the past forty years. Yet the US federal budget has grown about 60% (inflation adjusted) over the same period. Those living in poverty (a major driver for federal spending) has only gone down about 4% over the past 40 years while spending has gone up about 60%.

Something is just totally out of whack with these numbers. And this doesn’t even include analysis at the state levels.

That 60% growth is funded out of the taxpayer’s pockets in some form or another. How would the US “affordability” crisis change if federal spending had been held to 30% to match population growth?

Sparta Nova 4
Reply to  Tim Gorman
January 7, 2026 6:51 am

Better question is, how would the budget have grown if only to keep pace with inflation?

Reply to  Sparta Nova 4
January 7, 2026 7:17 am

The 60% growth is adjusted for inflation. Inflation is not the driver for the increase.

Sparta Nova 4
Reply to  Tim Gorman
January 7, 2026 10:55 am

I understood the adjustment.

That was not the question.

KevinM
Reply to  Sparta Nova 4
January 7, 2026 7:50 am

Are federal debt spending and inflation different ways to describe the same processes?

Sparta Nova 4
Reply to  KevinM
January 7, 2026 10:56 am

Related but not the same.

SxyxS
Reply to  Tim Gorman
January 7, 2026 8:07 am

Bob Woodson claims that 70% of the LBJ welfare money never reached the poor.

Therefore it is safe to say thatt dogoodism, be it national or private mostly exists to enrich the dogooders and their friends and families and provide them with jobs.

Sparta Nova 4
Reply to  SxyxS
January 7, 2026 10:58 am

I have always believe and advocated for local charity.

Charity begins at home.

The fewer fingers in the pie the large slice on the plate.

SxyxS
Reply to  Sparta Nova 4
January 7, 2026 11:52 am

There should be a mandatory efficiency quote for all charity stuff.
Let’s say 70% for those in need and max 30% for bureaucracy.
Everything else should be harshly punished imo.
This keeps the parasites away.

Maybe there are some very specific domains that need exception but a 80:20 ratio should be the norm and 70:30 the limit.

Reply to  Tim Gorman
January 7, 2026 8:33 am

‘Something is just totally out of whack with these numbers. And this doesn’t even include analysis at the state levels.’

What’s ‘out of whack with these numbers’ is public morality. Most people will agree that theft, i.e., the forceful taking of property from one individual to benefit another, is immoral, and that any society allowing same to become prevalent will eventually collapse. The problem today is that the Left has convinced most people that theft is actually beneficial when undertaken by government.

Reply to  Tim Gorman
January 8, 2026 12:45 pm

The fraud has increased at a far higher rate than has the budget!

Tom Johnson
January 7, 2026 6:40 am

It’s not easy to spend a sudden windfall of money effectively. Ask the lottery or sport star sudden “millionaires how it worked out for them. A very large percentage of them soon end up in the same penniless state they were in when they received it. An amount that when invested properly could make someone comfortable for life, can get blown away in just a few months. When the windfall is measured in $billions and even $trillions as were the Biden debacles, it became impossible. How do you properly spend a trillion dollars effectively in just a year or so? You don’t. You divi it up amongst your co-conspirators who then grift or waste the bulk of it. Recent history is proof. Most people splurge a bit at first, then get used to splurging, and soon the windfall is gone.

US Federal largess is even worse. Once money is spent, it becomes part of the US budget and then gets permanently added to the budget every year….forever, except that it is increased by inflation each year.

January 7, 2026 6:41 am

“The Minnesota daycare scandal is a heartbreaking example.”

I bet the burro-crats who were supposed to be monitoring the program are very well paid and busy going to useless meetings where they could say how great the program is.

Sparta Nova 4
Reply to  Joseph Zorzin
January 7, 2026 6:53 am

It is reported that one special politician went from having basically nothing to 10s of M$ in one year.

Curious how that happens and can I get in on it?

George Thompson
Reply to  Sparta Nova 4
January 7, 2026 7:25 am

Not curious at all…Democrats in charge after all.

Sparta Nova 4
Reply to  George Thompson
January 7, 2026 10:59 am

I apologize for omitting the /s.

Reply to  Sparta Nova 4
January 8, 2026 10:37 am

It’s been reported that some of the money went to a Somali terrorist group in Somalia.
I forget the name of the group.
(I doubt they’re using to money to sponsor drag queen events.)

Scarecrow Repair
Reply to  Joseph Zorzin
January 7, 2026 9:01 am

Congratulations on using “burrocrats”. My sister-in-law from Mexico City taught me that. She really gets into rolling that rr.

Neil Pryke
January 7, 2026 6:43 am

I thought the UK was world leader in overpricing and late completion…HS2 rail link…and most nuclear power stations…

Sparta Nova 4
January 7, 2026 6:50 am

How can you tell a politician is lying? His lips are moving.
What do you do whan a politician says, “Trust me.”? Grab your wallet and run like hell.

Doug S
January 7, 2026 7:02 am

California taxpayers watched Nancy Pelosi stand in front of news cameras to tell us that we need to build this high speed train to fight climate change. Her push for this project was presented as a way to reduce air travel between San Francisco and Los Angeles. It was a ridiculous proposition from the very start but welcome to California.

George Thompson
Reply to  Doug S
January 7, 2026 7:26 am

Yep.

Sparta Nova 4
Reply to  Doug S
January 7, 2026 11:01 am

This is the same Nancy Pelosi who skirted Congressional Law by having her husband purchase $200M in stock based on her insider information. She did not make the purchase, so it was ok.

Reply to  Doug S
January 8, 2026 10:46 am

And don’t forget that Gavin is Pelosi’s nephew.

January 7, 2026 7:31 am

Why is anyone surprised?

ndmcclur
January 7, 2026 7:43 am

I agree, bad stuff, but where is the accounting of the Trump kleptocracy?

Reply to  ndmcclur
January 7, 2026 8:23 am

Proceed.

Sparta Nova 4
Reply to  ndmcclur
January 7, 2026 11:02 am

Ah, a sophistry diversion away from the topic at hand.

Reply to  ndmcclur
January 7, 2026 11:33 am

You mean, Trump not taking the Presidential salary.. Trump using own money for the ballroom, etc ?

Reply to  ndmcclur
January 8, 2026 11:15 am

I agree, bad stuff, but where is the accounting of the Trump kleptocracy?”

He came in already a multibillionaire. He’ll go out still a multibillionaire.
Less of taxpayer dollars is going end up the real kleptocrats’ pockets while taxpayers are able to keep more.
“Accounting”? DOGE, fraud investigations, the border mostly secured, illegal aliens being deported, etc., etc.
True. He does like to name things after himself, but that’s a small price to pay for what’s he’s done so far.

KevinM
January 7, 2026 7:47 am

“It’s about taxpayer dollars …”
…some day.
“A significant portion of the U.S. federal budget is borrowed, with recent figures showing it can range from around 27% to over 40% of total spending, varying significantly by year due to economic conditions like recessions or crises (e.g., 48% in 2020, 27% in 2024). This borrowing covers the budget deficit, which occurs when spending exceeds revenue, with borrowing financing the gap to fund government operations and programs.” 

KevinM
Reply to  KevinM
January 7, 2026 9:03 am

AI choosing the words “from around 27% to over 40%” to represent a recent range of 27-48% is especially informative about how AI has been programmed to “think”.

Sparta Nova 4
Reply to  KevinM
January 7, 2026 11:05 am

AI confuses budget with appropriations with allocations with…..
The budget is the plan and does have planned borrowing.

Much like many people conflating debt and deficit.

KevinM
January 7, 2026 7:54 am

If the reader does not check from time to time, please Google up a pie chart of US federal government spending.

January 7, 2026 8:22 am

It is not limited to the Left. Thousand-dollar toilet seats and $400 hammers are the tip of the iceberg in military grifting, which has been the favored Neo-Con con. The Left has just managed to perfect the skill of using social guilt in addition to fear to avoid accountability.
Then there is the use of stigma to silence exposure, since few will risk being seen as helping the “other side” by calling out the excesses of their own.
Perfectly vicious, is it not?

MarkW
Reply to  Mark Whitney
January 7, 2026 10:23 am

There is often more to the story.
The thousand dollar toilet seat was for a submarine.
To flush while submerged, the toilet has to be pressurized.
Before it can be pressurized, the seat has to be firmly clamped to the rest of the toilet with an air tight seal. The lid is made from stainless steel with sufficient thickness to handle the pressure.
Also, only a small number are made, so the engineering costs are spread out over a small number of units.

You forgot about the $500 coffee pot, which turns out was destined for a B52. While these planes are pressurized, they aren’t pressurized to ground level pressures. As a result the coffee pot had to be pressurized so that the water could get hot enough to properly brew coffee. Commercial airliners have the same problem.

Reply to  MarkW
January 7, 2026 11:02 am

Partly true about the coffee maker.

Brewing coffee on a plane typically requires specialized equipment due to the limited space and power constraints of the aircraft.
Most planes use drip-stye machines or pots that resemble rugged versions of home coffee makers.
Ground coffee is placed in paper pouches or filters, and hot water from the plane’s potable water tanks is dripped through it into a pot.
These systems often incorporate microprocessors for temperature control and pre-infusion to optimize flavor despite cabin pressure. 

However, the submerged toilet system does not seem to operate as you suggest.

Waste Management Process
The waste management system on a submarine is a closed-loop system designed to treat and process human waste efficiently. Here’s how it works:
Vacuum System: Submarine toilets use a vacuum to pull waste away from the bowl, minimizing water usage. This is crucial as fresh water is a limited resource on submarines. 

Holding Tanks: Collected waste is stored in sanitary tanks. These tanks are designed to hold the waste until it can be safely discharged. When the submarine is at periscope depth or docked, the tanks can be flushed to the open sea. 

That would not seem to require an especially technical toilet seat.

Whatever the special cases, it remains that military expenditure continues to mount, and is seldom questioned, as is our often questionable involvement in military adventure across the globe.

In the Cold War, it was the “Red Menace.” Now it is “Russia, Russia, Russia”. As we have projected military presence elsewhere while incurring debt for ever more expensive toys and the enrichment of the donor class, the situation here continues to deteriorate. The waste is unquestionably bipartisan.

Sparta Nova 4
Reply to  MarkW
January 7, 2026 11:09 am

Ah yes. The superman toilet seat. I remember that.

The true story of the $5000 coffee maker.

The idea was to use the standard used in commercial airlines.
There were a few minor requirements that had to be addressed.
First, the dimensions did not fit in the spot on the plane.
Second, the coffee could not spill under any circumstance involving flight dynamics.
The coffee makers were delivered.
Public outcry ensued.
The manufacture gave the money back with a stipulation that they never be contracted for it or anything else again.

Sparta Nova 4
Reply to  Sparta Nova 4
January 7, 2026 11:52 am

I forgot to mention one of the added requirements prohibited spillage in the event the aircraft crashed.

Reply to  Sparta Nova 4
January 7, 2026 12:08 pm

Chuckle.

Sparta Nova 4
Reply to  Mark Whitney
January 8, 2026 5:40 am

It’s true.

Giving_Cat
Reply to  Mark Whitney
January 7, 2026 11:07 am

> Thousand-dollar toilet seats and $400 hammers are the tip of the iceberg in military grifting, which has been the favored Neo-Con con.

About that $800 toilet seat. You’ve undoubtedly been in a commercial aircraft toilet. The military “seat” you reference included all the conformal surrounding structure. Understand that a pound of parasitic weight even back in those days of the 1980s was worth hundreds of dollars in total lifecycle costs. Those toilet seats have saved many thousands over their service history in just operating costs. Shall we move on to discuss the massively reduced maintenance?

Reply to  Giving_Cat
January 7, 2026 11:43 am

I accept that example may have been poorly chosen. That does not refute the general argument of waste and abuse. Shall we discuss the F-35 or Fat Leonard? I seriously doubt those scandals were alone in the basket.

Sparta Nova 4
Reply to  Mark Whitney
January 7, 2026 11:57 am

I worked on some electronics for the F-35.
Quite a story. Unfortunately I can not discuss it as I was never “read out.”

It seriously abused the concept of “Spiral Engineering” incurring delays and cost overruns, etc. Quite a fiasco.

Giving_Cat
Reply to  Mark Whitney
January 7, 2026 12:30 pm

> I accept that example may have been poorly chosen.

Accepted and understandable.

Sparta Nova 4
Reply to  Mark Whitney
January 7, 2026 11:26 am

Ah, the $500 hammer. Fun story and true.

An airman needed a hammer. His sergeant told him to draw one from supply.
Supply told him they did not stock hammers and he needed a procurement specification so they could buy it.
The airman did a bit of research and identified a Sears Craftsman hammer, price $9.95 with a lifetime warrantee. He typed the information and took it to supply.
Supply informed him it needed signatures.
Configuration management informed him is was not the proper format, it needed the military specification 1-6 sections plus a cover sheet.
He did all of it and submitted it.
It came back annotated that it needed dimensioned drawings.
He drew it up, all 6 faces.
He was told it needed dimension tolerances. He applied standard mechanical tolerances.
He was told it lacked inspection requirements, specifically test requirements.
More research. He included an hammer impact test, a nail pull test, and a handle grip test.
He was told the supplier needed to submit a test report with the delivery.
That was added.
The document went out.
The hammer was delivered with the test report.
The cost was $500.
The cost breakdown was: $9.95 for the hammer and the rest was for inspection, test, and report.

All during this, the airman considered picking up a rock and using it to drive the nail. This was not allowed due to safety regulations.

This is a true story.
It received a Golden Fleece Award.

Reply to  Sparta Nova 4
January 7, 2026 11:48 am

That is certainly more in line with the point I was trying to make. Wherever there is a huge volume of spending other people’s money, there is an inverse relationship regarding efficiency and accountability.
And everyone has a pet project that they would like to see get as little scrutiny as possible.

Bob
January 7, 2026 1:41 pm

There is nothing surprising here. It is easy to blame the people who are ripping us off like the Somalis in the daycare scandal and I do blame them. The ones I want punished are the department heads handing out the money. The ones cheating us by taking the money are bad but nothing compared to the low down government bottom feeders giving them the money.

Sean2828
January 8, 2026 2:14 am

The examples you cited are peanuts compared to the money thrown at healthcare and academia.
In healthcare, payments are structured to give large hospital systems the largest portion of the money while your primary care physician provides the same service as the hospital at a third the cost until they are bled dry and go out of business. As a result only about 3-5% of the money in the system is used for primary care where it could be more cost effective to have preventative treatment.
In academia you have the double whammy of student loans and government grants. The student loan system guarantees schools get paid handsomely no matter the value of the degree. With research grants the schools often get charged 50-70% overhead rates that are use to build buildings and support a bloated count of administrators who are now more numerous than the faculty.

January 8, 2026 12:40 pm

We should not forget the $100 Million raised by the Fireaid Concert. The disbursements seemed to go to 188 NGOs, none of which sent even $1 to the actual fire victims.