A congressional oversight report, led by Republicans, alleges that senior officials in Minnesota, including Governor Tim Walz, did not act on warnings about fraud in the state’s social services programs, resulting in significant financial losses. The report, released by the House Oversight Committee, claims that the Walz administration had the authority to prevent fraudulent payments but failed to do so despite concerns raised by officials. Investigators noted that fears of potential racial discrimination claims influenced the decision to continue payments to suspected fraudulent providers.
The report estimates that Minnesota lost approximately $300 million in federal nutrition funds intended for children during the COVID-19 pandemic, with an additional $9 billion in Medicaid billing potentially being fraudulent. It also states that Governor Walz was aware of fraud linked to the Feeding Our Future nonprofit as early as 2020, yet payments continued for nearly two years afterward. Over 110 individuals have been charged in connection with various fraud schemes in Minnesota, with some defendants identified as members of the Somali immigrant community.
The oversight investigation included testimonies from Governor Walz, Attorney General Keith Ellison, and other state officials. The committee has also requested a review of Minnesota’s social services programs for potential fraud vulnerabilities. Earlier this year, the Trump administration suspended nearly $260 million in federal Medicaid funding to Minnesota due to concerns over the state's handling of fraud.
