Congressional investigators examining alleged fraud within Minnesota’s public benefits programs say new evidence could lead to criminal referrals if links emerge between state leaders and individuals accused of misusing federal funds.
By yourNEWS Media Newsroom
The chairman of the House Oversight Committee indicated that criminal referrals remain possible as federal investigators continue examining allegations that Minnesota officials failed to act on warnings about widespread fraud within taxpayer-funded welfare programs.
Rep. James Comer, who leads the committee’s investigation, said the panel has uncovered evidence suggesting senior officials in Minnesota’s government had prior knowledge of potential abuses within federally funded assistance programs. Comer discussed the findings during an appearance highlighted in coverage by Just the News.
According to Comer, the committee has already forwarded its investigative report to the U.S. Department of Justice for review.
“We’ve given [the Justice Department] the report today that shows Walz and them knew. I don’t know that it’s a crime. Incompetence isn’t a crime, unfortunately…but at the end of the day, if some of these fraudsters implicate a coordination with Attorney General Ellison or Governor Walz, then I think that you could see some referrals from the committee,” Comer said during an interview on the television program featured in this broadcast segment.
The committee’s report concluded that officials within Minnesota’s state government—including Gov. Tim Walz and Attorney General Keith Ellison—were aware for years of allegations that fraud was occurring within certain benefit programs. Investigators say the report suggests that state leadership failed to intervene despite repeated warnings.
The investigation intensified after congressional Republicans began examining a series of welfare fraud allegations involving federal funds distributed through Minnesota state programs. Lawmakers said testimony from multiple state officials helped shape their conclusions.
Gov. Walz has rejected accusations that his administration failed to address the issue. Appearing before the Oversight Committee alongside Attorney General Ellison, the governor defended his administration’s response and pointed to federal prosecutions related to the case.
“I have watched with dismay as members of this Committee have made unfounded allegations that I am somehow complicit in defrauding Minnesota programs,” Walz said during the hearing.
“As a former member of Congress, I know that this institution can be better than these evidence-free accusations levied for nakedly partisan reasons,” he added, while reiterating that his administration would continue cooperating with federal authorities to combat fraud.
Despite those assurances, Republican lawmakers on the committee say testimony collected during the investigation raises questions about how state agencies handled early warnings about potential fraud.
Nine current and former officials from Minnesota’s Department of Education and Department of Human Services—two agencies responsible for administering the programs involved—provided testimony to congressional investigators.
The investigation was launched after new allegations surfaced involving Minnesota’s federally funded child care assistance programs. Evidence reviewed by the committee included video footage appearing to show daycare centers registered to serve hundreds of children while operating empty facilities, details discussed in reporting about the allegations involving Minnesota childcare fraud concerns.
Investigators also examined connections to a separate case involving a large fraud scheme tied to a nonprofit organization known as Feeding Our Future. Federal prosecutors previously charged dozens of individuals in connection with the operation.
In 2021, the Justice Department announced charges against 47 people accused of diverting approximately $250 million in federal pandemic relief funds distributed through child nutrition programs, according to the original announcement by the Department of Justice regarding the Feeding Our Future prosecution.
Attorney General Merrick Garland, who served during the Biden administration, described the case at the time as the largest pandemic-era fraud scheme uncovered in the United States.
The Oversight Committee is examining when Minnesota officials first became aware of irregularities connected to the nonprofit. During testimony referenced in a hearing documented by the committee’s official record of its oversight proceedings, lawmakers questioned Walz about the timeline of his knowledge of the allegations.
Walz previously said he was informed of suspicious activity tied to Feeding Our Future in November 2020. However, testimony from a Minnesota Department of Education official suggested that complaints about the program dated back to 2018, the year before Walz became governor.
The same witness told investigators that by April 2020 both the governor’s office and Attorney General Ellison’s office would likely have been notified about the concerns.
Committee members also examined decisions by Minnesota state agencies to resume funding to Feeding Our Future after earlier suspicions led officials to halt payments. Investigators noted that payments continued even though officials acknowledged they had authority to stop distributing funds.
According to testimony cited in reporting by Just the News, the Department of Education resumed payments by April 30, 2021, partly due to concerns that the nonprofit might file a lawsuit if the funding remained suspended.
The nonprofit’s founder and executive director, Aimee Bock, later faced criminal charges and was convicted in connection with the scheme. Bock had previously threatened legal action against the Minnesota Department of Education, alleging racial discrimination if the state terminated the organization’s funding. The nonprofit formally filed a lawsuit in November 2021.
During the congressional hearing, lawmakers also raised questions about statements Walz made in 2022 about a court order he said required the state to restore funding to the nonprofit.
A judge later issued a clarification disputing that interpretation. According to a court-authorized statement referenced in reporting by Fox News, the judge never ordered the Minnesota Department of Education to resume the food reimbursement payments.
“As the public court record and Judge Guthmann’s orders make plain, Judge Guthmann never issued an order requiring the MN Department of Education to resume food reimbursement payments to FOF,” the statement said.
Rep. Jim Jordan pressed Walz on the issue during the hearing, asking, “So either you’re lying or the court’s lying. And I’m just asking you which one is it?”
Walz responded that officials within the Department of Education believed the court’s ruling required them to restore the payments.
“The agency believed that the court had required them to make those payments,” Walz told lawmakers.
Comer said whistleblowers from Minnesota government agencies approached the committee during its investigation. According to Comer, some of those individuals told investigators they believed the alleged failure to intervene in the fraud was driven by political concerns.
“[T]hey came forward because they were appalled that Walz and Ellison would not do anything about the fraud, and they knew it was because of political reasons, 100% political. They didn’t want to offend the Somali population, which was a massive voting block for the Democrat Party,” Comer said.
The Oversight Committee’s investigation into the alleged misuse of federal welfare funds remains ongoing as federal authorities review the findings and consider whether additional legal action may follow.
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