House Oversight Committee Releases 205-Page Report Alleging Minnesota Officials Failed to Stop Widespread Social Services Fraud

The House Oversight Committee released a 205-page final staff report on Monday alleging that senior Minnesota officials, including Gov. Tim Walz, failed for years to act on warnings about fraud in the state’s social services programs. The report states the Walz administration had the power to stop fraudulent payments to high-risk entities receiving federal nutrition and Medicaid funds but repeatedly failed to act.

Congressional investigators found that concerns about potential racial discrimination claims contributed to the decision to continue paying providers suspected of fraud. The committee spoke to nearly 30 whistleblowers. Some accused the Walz administration of retaliation against state employees for sounding the alarm about potential fraud.

"Fraud warnings were elevated to the most senior levels of the Minnesota state government, meaningful corrective action was delayed or avoided, and payments continued long after credible signs of fraud emerged," the report reads. Minnesota is estimated to have lost $300 million in stolen federal nutrition funds during the COVID-19 pandemic.

As much as $9 billion in Medicaid billing may have been fraudulent, according to an estimate attributed to a federal prosecutor.

Gov. Tim Walz was allegedly aware of fraud associated with the now-defunct Feeding Our Future nonprofit as early as 2020. Payments to the group continued for roughly two years after that point. The report states Walz gave conflicting answers about when he first learned of the meal fraud.

Federal prosecutors have charged more than 110 individuals in connection with various fraud schemes in Minnesota. Many defendants in the Feeding Our Future case have been identified as members of Minnesota's Somali immigrant community. Some convicted fraudsters used stolen money for luxury purchases.