Never Forget The Mississippi Welfare Scandal: How Millions in Anti-Poverty Funds Were Diverted to the Wealthy and Well-Connected

 

Artwork by @Amani Chiari

The Mississippi Welfare Scandal: How Millions in Anti-Poverty Funds Were Diverted to the Wealthy and Well-Connected

The Mississippi Welfare Scandal stands as one of the largest public-corruption and mismanagement cases involving federal anti-poverty funds in U.S. history. What began as a routine audit of the state’s welfare programs quickly unraveled into a sweeping investigation that exposed how millions intended for Mississippi’s poorest families were instead funneled toward high-profile projects, influential individuals, and pet initiatives backed by politically powerful figures.

At the center of the scandal is the Temporary Assistance for Needy Families (TANF) program—federal funds meant to provide basic support, work assistance, and emergency aid to low-income families. Instead of reaching families in need, a significant amount of this money was diverted to projects that had little or nothing to do with fighting poverty.

What Exactly Happened?

Between 2016 and 2019, the Mississippi Department of Human Services (DHS) allegedly misdirected over $77 million in TANF funds. This money, meant for struggling families, was instead routed through non-profit organizations and spent on:

• Construction of university sports facilities

• Luxury travel and high-end goods

• Speaking fees for speeches that were never delivered

• Fitness programs aimed at executives

• Investments into a pharmaceutical startup

The pattern was clear: individuals with political connections or celebrity status were able to access funds meant for Mississippi’s most vulnerable residents.

When Crime Wears a Badge, a Suit, or a Smile

The Mississippi welfare scandal proved something the public has never been comfortable acknowledging: being in government does not make someone incapable of criminal behavior, and there is no single “face” of crime. People who believe they can get away with wrongdoing will commit wrongdoing—regardless of what they look like, the job titles they hold, or the social circles they move in.

The same pattern exists in Minnesota’s fraud crisis.

Many of the individuals causing harm do not fit the public’s stereotype of “hardened criminals.” That’s precisely the point the public must confront. Enormous violence, inhumane lifelong trauma, systemic injuries, and generational devastation can—and often do—come from people society labels as the “good guys” simply because of their appearance, profession, or proximity to power.

We must stop waiting for a “Black face” to blame in order to excuse institutional wrongdoing. We must stop assuming disability always looks like a wheelchair. And we must stop using the language of “programs and services” to soften the truth about Minnesota’s fraud issue—because at its core, we’re talking about healthcare insurance and the delivery (or denial) of medical treatment, not charity.

These deliberate images and euphemisms are designed to obscure reality, to help the public psychologically distance themselves from the experiences of the people inside these systems, and to give fraud a “safe,” familiar face—one that is never questioned. This allows the real wrongdoers to keep profiting from misconduct carried out on human bodies, paid for by public money.

Who cares what they look like, where they work, or who they know? They are people—just like anyone else—and it is as much our civic duty to ask what they have done with our money as it is our duty to provide that money in the form of taxes.

Look at the individuals involved in scandals across states: people in polished clothes, people posing for photo ops, people occupying positions in social services, education, government, athletics, business, and community leadership. The Mississippi case made that plain. Minnesota’s situation echoes the same truth. Do not let rhetoric override facts. Ask the only question that matters: What have you done?

Key Figures at the Center of the Mississippi Welfare Scandal

John Davis – Former DHS Director

As head of the Mississippi Department of Human Services, Davis oversaw the distribution of TANF funds. He has pleaded guilty to federal and state charges related to fraud and conspiracy.
Prosecutors say he directed non-profits to spend welfare money on unauthorized projects that benefited his friends, business partners, and well-connected Mississippians.

Brett Favre – Hall of Fame NFL Quarterback

Favre’s involvement has drawn national attention. Although he has not been charged with a crime, the state of Mississippi has filed a civil lawsuit against him. Favre allegedly pushed state officials to secure $5 million in TANF funds for a volleyball stadium at the University of Southern Mississippi—his alma mater and the school where his daughter played volleyball. He was also paid $1.1 million in TANF funds for motivational speeches he did not give. Favre later repaid the money, but the state claims he still owes interest. Text messages released by investigators show Favre asking state officials whether the public could find out he received welfare money. Favre has repeatedly stated he did not know the funds were federal welfare dollars and denies all wrongdoing.

Nancy New – Non-Profit Operator

Nancy New ran the Mississippi Community Education Center, one of the non-profits chosen by DHS to distribute TANF funds. Her organization received millions of dollars and allegedly used the money on unauthorized projects. She has been indicted and pleaded guilty to charges including bribery, fraud, and conspiracy.

Phil Bryant – Former Governor of Mississippi

Text messages released through court filings show Brett Favre communicating with then-Governor Phil Bryant about the volleyball project. While Bryant has not been charged, the texts indicate he was aware of Favre’s funding requests and maintained contact with Favre and New during the period of misused funds. Bryant denies any wrongdoing.

Where the Case Stands Today

Civil Lawsuit

The state of Mississippi has filed a sweeping civil lawsuit against Brett Favre, Nancy New, and dozens of other individuals and organizations, seeking to recover the misspent $77 million.
Favre is fighting the lawsuit, maintaining that he did nothing illegal.

Criminal Charges

Several former government officials and non-profit leaders have pleaded guilty to federal and state charges. No criminal charges have been filed against Favre, but the FBI has interviewed him regarding the misuse of TANF money.

Congressional Interest

Brett Favre is scheduled to testify before a congressional committee focused on welfare reform and public assistance oversight. Lawmakers in Washington are using the Mississippi scandal to highlight structural weaknesses in state-managed welfare programs and the need for stronger reporting, transparency, and auditing mechanisms.

Why This Scandal Matters

The Mississippi Welfare Scandal underscores a troubling reality: federal funds intended to support vulnerable families can be redirected when oversight is weak and political influence is strong. Mississippi remains the poorest state in the nation, with thousands of families qualifying for TANF but only a tiny fraction receiving aid during the years in question. Instead of going to food, rent assistance, child care, or job programs, tens of millions were spent on:

• Athletic facilities

• Private business ventures

• Payments to celebrities

• Personal enrichment of officials

The scandal continues to evolve as lawsuits move forward and more details emerge.

Read The Wikipedia Page

Posted in Department of Human Services, Mississippi Welfare Scandal, TANF funds, Welfare Fraud