Walz Administration Knew of Billion-Dollar Fraud Scheme and Did Nothing, Congressional Report Finds

Despite public statements otherwise, Governor Tim Walz and Attorney General Keith Ellison knew of widespread fraud in Minnesota’s federally funded social programs as early as 2019 and chose not to act, a House investigation led by Republicans concluded on Monday in its staff report.The House Committee on Oversight and Government Reform released a sweeping 205-page report titled “The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota’s Fraud Explosion.” The product of a monthslong investigation, the report alleges that senior Minnesota state officials had both the knowledge and the legal authority to stop fraudulent payments but repeatedly failed to do so.“Governor Walz and Attorney General Ellison knew about the fraud in federal programs administered by the State of Minnesota much earlier than they admitted,” the report asserts.The consequences of the fraud were staggering. Federal prosecutors have confirmed that at least $300 million was stolen from Department of Agriculture child nutrition programs — money intended to feed hungry children during the COVID-19 pandemic. Investigators also estimate that as much as $9 billion in Medicaid funding may have been lost or placed at serious risk since 2018.At the center of the scandal is Feeding Our Future, a now-defunct nonprofit that allegedly operated a network of fake meal sites. Mr. Walz was aware of fraud linked to the organization as early as 2020, the report states, yet payments continued flowing to the group for roughly two more years. The committee also found that Mr. Walz gave conflicting accounts of when he first learned about the scheme.Rather than halting payments to high-risk providers, the report alleges that the Walz administration actively worked to suppress internal dissent. State employees who raised concerns about fraud were then subjected to retaliation, including intimidation through regular check-ins with senior agency officials and threats of military surveillance. The committee spoke to nearly 30 whistleblowers as part of its investigation.Officials cited fear of being accused of racial discrimination as the primary reason for continuing payments to suspected fraudsters, investigators found. Many of the defendants charged in the Feeding Our Future case have been identified as members of Minnesota’s Somali immigrant community. Authorities have also investigated whether a portion of the stolen funds was funneled overseas to aid terrorist groups.More than 110 individuals have been federally charged in connection with various fraud schemes across the state and 65 convicted so far. The founder and executive director of Feeding Our Future, Aimee Bock, was sentenced to 500 months in prison for her role. Her co-conspirator, Salim Said, who co-owned Safari Restaurant, which claimed to serve thousands of meals per day within weeks of being formed, was also found guilty on 21 counts of wire fraud, conspiracy to commit wire fraud, federal programs bribery, money laundering, and related charges.“Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for one of the most stunning oversight failures this Committee has ever examined,” Committee Chairman James Comer of Kentucky 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. 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,” Mr. Comer said.After the fraud was exposed, Mr. Walz, who was previously Kamala Harris’s 2024 vice presidential running mate, said he would not run for re-election. He campaigned, however, in Maine last month for Democratic Senate candidate Graham Platner. He has also blasted the Department of Immigration and Customs Enforcement for what he called severe abuses during Operation Metro Surge, which began in December 2025. Mr. Ellison announced last October that he will run for a third term.Following the report’s release, Mr. Comer sent a letter to Vice President JD Vance urging a thorough federal review of Minnesota’s social services programs. The Trump administration had already suspended nearly $260 million in federal Medicaid funding to Minnesota earlier this year over the state’s alleged failure to address fraud. The House is also expected to consider a slate of fraud-prevention bills this week, with the Government Accountability Office estimating that between $233 billion and $521 billion is lost to fraud nationally each year.

Walz Administration Knew of Billion-Dollar Fraud Scheme and Did Nothing, Congressional Report Finds

Walz Administration Knew of Billion-Dollar Fraud Scheme and Did Nothing, Congressional Report Finds

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