A Republican-led congressional oversight report alleges that senior Minnesota officers, together with Gov. Tim Walz, D-Minn., failed for years to behave on warnings about fraud within the state’s social companies packages, permitting lots of of thousands and thousands of {dollars} in confirmed or alleged losses and inserting billions extra in danger.
The Walz administration had the facility to cease fraudulent funds to high-risk entities receiving federal diet and Medicaid funds, however the state “repeatedly did not act” after officers raised issues, in accordance with a 205-page last employees report launched by the Home Oversight Committee on Monday.
Congressional investigators discovered that issues about potential racial discrimination claims — moderately than authorized constraints — contributed to the Walz administration’s determination to proceed paying suppliers suspected of fraud.
The committee additionally spoke to almost 30 whistleblowers, a few of whom accused the Walz administration of retaliation in opposition to state staff for sounding the alarm about potential fraud.
“Fraud warnings have been elevated to essentially the most senior ranges of the Minnesota state authorities, significant corrective motion was delayed or prevented, and funds continued lengthy after credible indicators of fraud emerged,” the report reads partially.
The committee discovered Minnesota is estimated to have misplaced $300 million in stolen federal diet funds meant to feed hungry youngsters in the course of the COVID-19 pandemic and that as a lot as $9 billion in Medicaid billing might have been fraudulent, an estimate attributed to a federal prosecutor and disputed by Walz administration officers.
Walz was allegedly conscious of fraud related to the now-defunct Feeding Our Future nonprofit that operated a constellation of pretend meal websites as early as 2020, however funds continued flowing to the group for roughly two extra years. The oversight panel additionally discovered Walz gave conflicting solutions about when he first discovered of the sweeping meal fraud.
Federal prosecutors have charged greater than 110 people in reference to varied fraud schemes within the state. Many defendants within the Feeding Our Future case have been recognized as members of Minnesota’s Somali immigrant neighborhood, in reference to varied fraud schemes within the state. Among the convicted fraudsters used the stolen cash for luxurious purchases and state officers have investigated whether or not a portion of it was funneled abroad to assist terrorist teams in Somalia and the Center East.
“Minnesota Governor Tim Walz and Legal professional Normal Keith Ellison are liable for one of the beautiful oversight failures this Committee has ever examined,” Comer stated in an announcement. “It’s now clear the Walz Administration selected to guard the system moderately than defend the taxpayer.”
The report caps a months lengthy investigation into the Walz administration’s dealing with of widespread fraud, which started in late 2025 and included listening to testimony from Walz and Legal professional Normal Keith Ellison in addition to members of the Minnesota state legislature’s fraud committee. 9 present and former state officers additionally participated in transcribed interviews with congressional investigators.
The panel can also be probing alleged well being care fraud in California and Ohio as a part of Republicans’ ongoing “struggle on fraud.”
The committee despatched a letter to Vice President JD Vance urging a full evaluate of Minnesota’s social companies packages for potential fraud vulnerabilities, following the report’s findings.
Vance’s anti-fraud activity drive has led to the arrest of at the least eight individuals who allegedly participated in well being care fraud schemes and the freezing of $1.3 billion in funds to house well being and hospice suppliers suspected of defrauding the federal government.
Earlier this 12 months, the Trump administration suspended almost $260 million in federal Medicaid funding to Minnesota over the Walz administration’s alleged failure to crack down on fraud.
The Trump administration has additionally required states to point out they’re aggressively probing potential Medicaid fraud or danger shedding federal funding.
The report additionally comes because the Home is predicted to think about a slate of fraud-prevention payments this week. Republicans have argued that new legislative instruments are obligatory to forestall fraud on the state degree amid alleged inaction.
The federal authorities loses an estimated $233 billion to $521 billion yearly to fraud, in accordance with a 2024 Authorities Accountability Workplace report.
