Federal investigators in Minnesota prosecuted one of the largest alleged COVID-19 child nutrition fraud schemes, with defendants found guilty in 2025 of diverting roughly $250 million by faking meal counts and submitting false reimbursement claims. Separate investigations involving other nonprofits serving children in Minnesota remain underway. The broader enforcement posture is paired with new scrutiny on nonprofit accountability. The DOJ reports $6.8 billion in False Claims Act settlements and judgments in 2025—an all-time high—while Treasury Secretary Scott Bessent argues public money and tax-exempt status require public accountability. Higher education institutions that operate or partner with nonprofits—especially those managing federally funded programs—will feel downstream compliance pressure via audits, reporting controls, and grant-eligibility requirements.