A Republican-led congressional oversight report released Monday accuses Minnesota Gov. Tim Walz’s administration of repeatedly ignoring warnings about fraud in state social service programs, allowing hundreds of millions of dollars in confirmed or alleged losses while placing billions more at risk.
The 205-page final staff report from the House Oversight Committee alleges senior Minnesota officials failed for years to halt suspicious payments tied to federal nutrition and Medicaid programs despite repeated internal warnings and escalating concerns from whistleblowers.
According to investigators, the Walz administration had the authority to stop payments to high-risk organizations receiving taxpayer funds but “repeatedly failed to act” even after state officials raised alarms.
“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 states.
Congressional investigators also concluded that concerns about potential racial discrimination accusations — rather than legal barriers — contributed to decisions to continue funding providers suspected of fraudulent activity.
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The committee interviewed nearly 30 whistleblowers during the months-long probe, with several alleging retaliation against state employees who attempted to flag suspicious activity or push for stronger oversight measures.
Investigators estimated Minnesota lost roughly $300 million in stolen federal nutrition funds during the COVID-19 pandemic, much of it tied to the sprawling Feeding Our Future scandal involving fake meal distribution sites.
The report also cited claims from a federal prosecutor that as much as $9 billion in Medicaid billing may have been fraudulent, though Walz administration officials disputed that estimate.
Congressional investigators alleged Walz was aware of concerns tied to the now-defunct Feeding Our Future nonprofit as early as 2020, yet payments to the organization allegedly continued for nearly two more years.
The oversight panel additionally accused Walz of giving conflicting accounts about when he first learned about the scope of the fraud scheme.
Federal prosecutors have already charged more than 110 individuals connected to various fraud operations across the state.
Many defendants in the Feeding Our Future case have been identified as members of Minnesota’s Somali immigrant community.
Prosecutors say some convicted fraudsters used stolen taxpayer funds on luxury purchases, while state officials have also investigated whether portions of the money were funneled overseas to support terrorist groups in Somalia and the Middle East.
House Oversight Committee Chairman James Comer blasted Walz and Minnesota Attorney General Keith Ellison following the report’s release.
“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 in a statement. “It is now clear the Walz Administration chose to protect the system rather than protect the taxpayer.”
The investigation began in late 2025 and included testimony from Tim Walz, Ellison, members of Minnesota’s legislative fraud committee, and interviews with nine current and former state officials.
A newly released 200-page report is putting Minnesota’s top Democrats under intense scrutiny.
The report alleges Gov. Tim Walz and Attorney General Keith Ellison were aware of major fraud concerns tied to programs like Feeding Our Future as far back as 2020, but failed to act on… pic.twitter.com/kSLzriZkIS
— Fox News (@FoxNews) June 8, 2026
More over at The New York Post:
Walz administration ignored fraud warnings as billions vanished, House oversight report alleges https://t.co/8dNsUQGXbp pic.twitter.com/5twaDocgLn
— New York Post (@nypost) June 8, 2026
