A 205-page House Oversight report alleges Minnesota officials knew about fraud concerns in state-administered programs as early as 2019 but failed to stop payments, retaliated against whistleblowers and allowed billions in taxpayer funds to be lost.
By yourNEWS Media Newsroom
A House Committee on Oversight and Government Reform Majority Staff report released Monday alleges that Minnesota Gov. Tim Walz and Attorney General Keith Ellison were warned for years about fraud in taxpayer-funded state programs but failed to take meaningful action while billions of dollars were allegedly stolen.
The 205-page report, titled “The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota’s Fraud Explosion,” says senior officials in the Walz administration and Ellison’s office were aware of credible fraud concerns in Minnesota Department of Human Services programs as early as 2019 and in Minnesota Department of Education child nutrition programs by April 2020.
MN Fraud Final Staff Report by yourNEWS Media
According to the committee report, state officials had authority to suspend payments or remove providers suspected of fraud from government programs but repeatedly declined to do so.
The findings, which were also circulated in an X post, accuse Minnesota leaders of political caution, bureaucratic inaction and retaliation against employees who raised warnings.
The report says that in the Feeding Our Future case, Minnesota Department of Education officials identified serious deficiencies but continued payments for another eight months until the FBI conducted raids. Investigators said those continued payments were not required by a court order.
The committee also found that Minnesota agencies did not need direction from courts, the FBI or federal officials to stop payments to suspected fraudsters. According to the report, state officials had the power to act but did not use it.
The report states: “Litigation threats and fear of accusations of discrimination, not legal or regulatory barriers, were repeatedly cited by state officials as the reason for continued funding of entities suspected of fraud.”
The committee also alleged that the Walz administration retaliated against employees who attempted to raise concerns about fraud. The report cites intimidation through regular high-level check-ins, threats of surveillance and efforts to keep whistleblowers quiet rather than address the underlying problems.
Investigators said concern inside the Department of Human Services increased only when officials realized negative media coverage was likely.
Walz and Ellison later claimed they knew “very little” about the fraud, according to the report. But committee investigators said transcribed interviews and documents contradicted those claims.
The report says Walz gave shifting explanations to the media about when he first learned of Feeding Our Future issues, citing April or May 2020, then summer 2020, then November 2020. At a March 2026 hearing, according to the report, he could not provide a specific date.
The committee said Minnesota Department of Education officials briefed Walz’s staff about an April 28, 2020, draft lawsuit and litigation hold from Feeding Our Future that included discrimination claims. Payments continued afterward, according to investigators.
The report also said the fraud concerns extended beyond one nonprofit. Minnesota’s Department of Human Services had 14 “high-risk” Medicaid programs under Department of Justice investigation. Since 2018, those programs have cost taxpayers more than $18 billion, and the U.S. Attorney’s Office suspects half or more may have been fraudulent, according to the committee, potentially totaling $9 billion.
Investigators pointed to rapid growth in programs including Housing Stabilization Services and Early Intensive Developmental and Behavioral Intervention as warning signs. The report said some programs saw provider and spending increases of hundreds of percent, which investigators described as major red flags that were ignored for years.
The committee concluded that the oversight failures diverted resources from vulnerable populations and allowed criminal schemes to grow. The report also said some schemes may have had ties to international terrorist networks.
House Committee on Oversight and Government Reform Chairman James Comer, R-Ky., said the findings show a major failure by Minnesota state leaders.
“Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for one of the most stunning oversight failures this Committee has ever examined,” Comer said. “Today’s report is the culmination of months of investigative work and reveals hard evidence showing how the Walz Administration failed to stop widespread fraud, allowing criminals to enrich themselves at the expense of American taxpayers.”
“Billions of dollars were stolen because Minnesota state leaders turned a blind eye to rampant fraud and retaliated against state employees who dared to raise concerns,” Comer said. “It is now clear the Walz Administration chose to protect the system rather than protect the taxpayer.”
“Americans are fed up with fraud and expect action from the government entrusted with their hard-earned money,” Comer added. “The House Oversight Committee has now passed over a dozen bills aimed at protecting taxpayer funds and strengthening oversight of federal programs ripe for fraud.”
“This Committee will continue to work alongside President Trump’s anti-fraud task force to have the backs of hardworking Americans,” he said.
Comer’s statement was also promoted in a second X post.
The full House Oversight report is available here.
The report now places renewed scrutiny on how Minnesota officials handled repeated fraud warnings, why payments continued after deficiencies were identified and whether concerns about litigation and discrimination accusations outweighed safeguards meant to protect taxpayer dollars.
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