House oversight report accuses Minnesota officials of ignoring social services fraud warnings
A Republican-led congressional oversight committee has released a 205-page report accusing Minnesota officials, including Gov. Tim Walz, of neglecting warnings about fraud in the state’s social services programs. The report claims that these failures allowed hundreds of millions of dollars to be stolen or at risk, with billions more potentially involved.
The committee found that the Walz administration had the authority to stop fraudulent payments to high-risk entities receiving federal nutrition and Medicaid funds but repeatedly failed to act after concerns were raised. The report states that concerns about potential racial discrimination claims, rather than legal issues, influenced the decision to continue payments to providers suspected of fraud. Nearly 30 whistleblowers told investigators that they faced retaliation after raising alarms about fraud.
According to the report, Minnesota is estimated to have lost $300 million in stolen federal nutrition funds during the COVID-19 pandemic. It also suggests that as much as $9 billion in Medicaid billing may have been fraudulent, though Walz administration officials dispute that figure. The report indicates Walz was aware of fraud linked to the now-defunct Feeding Our Future nonprofit as early as 2020, but payments continued for about two more years.
Federal prosecutors have charged more than 110 individuals in connection with various fraud schemes, many of whom are members of Minnesota’s Somali immigrant community. Some stolen funds were reportedly used for luxury purchases, and investigators are examining whether some money was funneled overseas to terrorist groups in Somalia and the Middle East.
House Oversight Committee Chairman James Comer called the situation a significant oversight failure, stating that the Walz administration prioritized protecting the system over taxpayers. The investigation, which began in late 2025, included interviews with Walz, Attorney General Keith Ellison, and nine current and former state officials. The panel is also examining alleged health care fraud in California and Ohio as part of its broader efforts to combat fraud nationwide.
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