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. This inaction reportedly allowed for hundreds of millions of dollars in losses and put billions more at risk. The report, released by the House Oversight Committee, states that the Walz administration had the authority to prevent fraudulent payments but failed to do so despite concerns raised by officials.
Investigators found that fears of potential racial discrimination claims influenced the decision to continue payments to providers suspected of fraud. The committee interviewed nearly 30 whistleblowers, some of whom claimed retaliation for reporting fraud concerns. The report indicates that Minnesota lost an estimated $300 million in federal nutrition funds intended for children during the COVID-19 pandemic, with up to $9 billion in Medicaid billing potentially being fraudulent, a figure disputed by Walz administration officials.
The report also mentions that Walz was allegedly aware of fraud linked to the Feeding Our Future nonprofit as early as 2020, yet payments continued for nearly two years. Federal prosecutors have charged over 110 individuals related to various fraud schemes in the state, with some defendants connected to Minnesota's Somali immigrant community. The report criticizes the Walz administration for its oversight failures and suggests that it prioritized protecting the system over taxpayer interests.
The findings come after a lengthy investigation that included testimonies from Walz and Attorney General Keith Ellison, as well as interviews with state officials. The committee has also initiated inquiries into alleged healthcare fraud in other states. Following the report, a letter was sent to Vice President JD Vance requesting a review of Minnesota's social services for fraud vulnerabilities. The Trump administration previously suspended nearly $260 million in federal Medicaid funding to Minnesota due to the state's alleged failure to address fraud effectively.
