Nebraska Auditor Exposes Waste as Fraud Tips Surge
Nebraska State Auditor Mike Foley reports an explosion of fraud tips as his office uncovers widespread misuse of government vehicles, a depleted health insurance fund, and questionable no-bid contracts.
Nebraska State Auditor Mike Foley's phone rings off the hook. Taxpayer tips about government waste now pour into his office by the hundreds, exposing a pattern of abuse that stretches from personal vehicle use to questionable multi-million-dollar contracts.
"It's just extraordinary the explosion of phone calls and allegations and emails and so forth that are pouring into my office," Foley told Fox News Digital from a State Financial Officers Foundation conference in Clearwater, Florida.
The Republican auditor links the surge to heightened media scrutiny of government spending and a national anti-fraud movement led by Vice President JD Vance.
Foley's investigators have traced widespread misuse of state assets through technology. GPS data from 45 Transportation Services Bureau fleet vehicles showed employees taking government vehicles to retail outlets, restaurants, medical facilities and a liquor store for personal trips.
In another case, Department of Agriculture program managers logged 47 improper road trips over 13 months. GPS records captured 100 additional hours beyond what they reported as work time.
The financial damage extends deeper than vehicle misuse. The state's employee health insurance fund plummeted from $83 million at the end of fiscal year 2022 to just over $7 million by fiscal year 2025.
Health insurance claims rose from approximately $209 million to $293 million during those same years. A $36 million spike occurred between fiscal years 2024 and 2025 alone. The top 20 highest-cost workers and their dependents generated 7,455 medical claims totaling $12.7 million in 2025.
Foley's local investigation ties to a broader conservative campaign against government waste. Vice President Vance's Task Force to Eliminate Fraud, established March 16, has identified nearly $6.3 billion in government contracts awarded to potentially fraudulent businesses.
A coalition of 40 conservative state treasurers, auditors and comptrollers across 28 states pledged to coordinate with Vance's efforts. Together, they oversee $3 trillion in state funds.
The political test of independent oversight sharpened when Foley referred a $2.5 million no-bid contract to law enforcement. Governor Jim Pillen's administration awarded the contract to Global Sustainability Developers, a firm run by lobbyist Julie Bushell, whom Pillen recommended.
Nebraska law requires public bidding for contracts exceeding $50,000. The administration asserted emergency timing justified bypassing competitive procedures.
"The contract was done the right way and is bringing hundreds of millions of dollars of value to Nebraska, which otherwise would have been wasted in California," Pillen spokeswoman Laura Strimple told Fox News Digital.
Foley's office found the state had more than three months to conduct proper bidding. The window ran from the bill's April 2, 2024 effective date to June 30, 2024, when the one-year performance period could have commenced. His office also noted only a small fraction of one percent of more than 8,400 state contracts awarded over two fiscal years received emergency designation.
The political pressure Foley applied translated into legislative action. Nebraska lawmakers advanced an oversight amendment for no-bid contracts with a unanimous 42-0 vote on April 2. The measure requires copies of emergency contracts and their justifications to reach the auditor's desk within three business days.
"There needs to be consequences when we find these kinds of abuses, and there are," Foley said. "Many people are losing their jobs because they've abused the trust of having access to a credit card or other assets of the government. We've put a number of people behind bars because of abuse and stealing of public funds."
The auditor highlighted eight local government fraud cases from June 2025. A Decatur Housing Authority executive director processed $18,000 in excessive compensation and $8,000 in missing cash payments. A Cedar County commissioner used a county pickup for personal business. A Nemaha County commissioner was photographed using a county gas pump after midnight.
"Nebraska regrettably is a high-tax state and people know that, and they're fed up with these high taxes, and they know that money is not being spent properly in so many instances, and they are relying on me and my office to catch this kind of thing, and we're doing a good job," Foley said.
His office oversees more than 2,500 units of local government in Nebraska with approximately 50 employees, down from 60 forty years ago. The fraud hotline continues receiving the surge of tips that now define his third term as state auditor.
As Foley's office keeps exposing systemic abuse, the message to state employees wasting taxpayer funds becomes unmistakable. Independent oversight will find you.