Maine Suspends Medicaid Payments To Nonprofit Amid New Fraud Concerns
Maine health officials have suspended taxpayer-funded Medicaid payments to a nonprofit serving Somali immigrants after a third audit found the organization had been overpaid more than $1 million, intensifying scrutiny of government-funded social services tied to immigrant advocacy groups.
The Maine Department of Health and Human Services (DHHS) temporarily halted all payments to Gateway Community Services after determining the nonprofit was overpaid $1,068,598 between March 2021 and December 2022, according to 8 Investigates.
A DHHS spokesperson told 8 Investigates on Tuesday that the Office of MaineCare Services Program Integrity Unit launched the audit in January 2023 after internal data analytics flagged irregularities.
The latest findings follow two earlier audits that also uncovered significant overpayments.
Documents obtained last month showed Gateway was overpaid $662,608 between 2015 and 2018. DHHS said those funds were identified through multiyear audits initiated after complaints were filed, raising long-standing concerns about oversight and accountability.
An attorney for Gateway confirmed in an email to 8 Investigates that the nonprofit recently received formal notice from the Program Integrity Unit stating that its MaineCare reimbursements were being paused over allegations of improper billing for interpreter services.
“Gateway has very little information about what this is based upon besides that notice and it will take time to review and respond to these allegations,” the attorney said.
“Gateway stands by its previous statements on this issue and will continue to cooperate with the state as it has in the past,” the attorney added.
The case has drawn growing attention from Republicans in Maine and at the federal level, where lawmakers have increasingly questioned why organizations serving immigrant populations continue to receive massive sums of taxpayer-backed Medicaid funding with limited transparency.
Gateway Community Services operates in Portland and Lewiston and primarily serves Somali immigrants in Maine. The nonprofit, which leans Democrat politically, has maintained close ties to elected officials.
Rep. Deqa Dhalac, a Democrat from South Portland, previously served as Gateway’s assistant executive director. Rep. Yusuf Yusuf, a Democrat from Portland, previously noted in his legislative profile that he worked closely with Gateway — a reference that was later removed after questions emerged about the organization’s finances.
State Auditor Matt Dunlap told 8 Investigates that Gateway will be included in Maine’s annual state audit, which is scheduled for release in March.
At the federal level, House Oversight Committee Chairman James Comer (R-Ky.) has identified Gateway as an organization of interest amid broader investigations into social services fraud during President Donald Trump’s second term. Comer specifically named Gateway Community Services and Rep. Dhalac in a letter sent Monday to Treasury Secretary Scott Bessent requesting suspicious activity reports tied to alleged misuse of public funds.
In September, Comer also sent a letter to Maine Gov. Janet Mills and DHHS Commissioner Sara Gagne Holmes requesting records related to state and local programs that provide health care and other benefits to undocumented immigrants. That inquiry focused on potential waste, fraud, and abuse but did not name specific organizations.
The developments in Maine mirror similar controversies unfolding in Minnesota, where massive fraud scandals have emerged involving taxpayer-funded feeding and daycare programs.
Republican congressional challenger John Nagel has accused Democratic Rep. Ilhan Omar of being closely linked to the $1 billion Feeding Our Future fraud scandal centered in her Minneapolis-based district.
Nagel argues that legislation introduced by Omar helped create the conditions that allowed the fraud to flourish.
“Where did this actually start?” Nagel said, according to Townhall. “She passed legislation. Her legislation actually started it, and it allowed people to get into Feeding Our Future.”
Nagel also pointed to the geographic concentration of the fraud.
“If you look at where the fraud is, it’s primarily her district, the district that I’m running in against her,” he said. “And it’s really odd to think that all the fraud just happened in a particular area.”
Omar introduced the Maintaining Essential Access to Lunch for Students Act — known as the MEALS Act — during the COVID-19 pandemic. The bill expanded free meal programs during school closures and loosened eligibility requirements. Omar has denied any wrongdoing.
As audits, investigations, and federal probes continue, critics argue the Gateway case highlights a broader failure of oversight in Democrat-run systems that funnel billions in taxpayer dollars to politically connected nonprofits — often with little accountability until the money is already gone.