if that's your definition of tolerating then I would imagine that yes it is tolerated by the political leaders

Everyone knows there is fraud and it's a matter of how much you want to do about it

By tolerating, I suppose I mean that elected officials probably have a good idea what percent of the money they take from us goes to ends other than the stated purpose, but that they accept it because they think it's necessary or they benefit from it.

Scoresby

I think during COVID everyone became a monkeybrained virtue-signaler when it came to government programs.  Whether that's "tolerating" fraud is up to you to decide, but it certainly enabled it.