Congressional Report: Minnesota Officials Failed to Act on Fraud Warnings for Years

Washington — A Republican-led congressional investigation has concluded that senior Minnesota officials, including Governor Tim Walz, allowed hundreds of millions of dollars in fraud to go unchecked despite years of internal warnings.

The 205-page report, released Monday by the House Oversight Committee, details how the Walz administration continued payments to suspected fraudulent entities in the state's social services programs even after concerns were raised at the highest levels of government.

According to the investigation, Minnesota is estimated to have lost $300 million in federal nutrition funds intended to feed children during the COVID-19 pandemic. Additionally, as much as $9 billion in Medicaid billing may have been fraudulent—a figure attributed to a federal prosecutor, though Walz administration officials dispute the estimate.

"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 stated.

The committee found that concerns about potential racial discrimination lawsuits, rather than legal constraints, contributed to the administration's decision to keep disbursing funds to providers suspected of fraud. Investigators interviewed nearly 30 whistleblowers, several of whom alleged retaliation by the Walz administration after they raised alarms about fraudulent activity.

The investigation centered largely on Feeding Our Future, a now-defunct nonprofit that federal prosecutors say operated a network of fraudulent meal sites. The report alleges Governor Walz was aware of associated fraud as early as 2020, yet payments to the organization continued for approximately two additional years.

Attorney General Keith Ellison also figures prominently in the findings. According to the report, a December 2021 audio recording reveals Ellison met with individuals later convicted in connection with the Feeding Our Future scheme. During the meeting, the group—convicted fraudsters—told Ellison they were facing alleged racial discrimination due to the Minnesota Department of Education withholding payments.

"The fraudsters pledged the Somali community's political and financial support to Ellison if he were to intervene on their behalf," the report states. "Ellison said he would help 'fight these people.'"

Ellison's office confirmed he received campaign contributions from several Feeding Our Future defendants following the meeting but said he later returned those donations.

Federal prosecutors have charged more than 110 individuals in connection with various fraud schemes in Minnesota. Some defendants have been identified as members of the state's Somali immigrant community. Investigators have also examined whether stolen funds were funneled overseas, including whether portions reached terrorist organizations in Somalia and the Middle East.

"Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for one of the most stunning oversight failures this Committee has ever examined," said Representative James Comer, chairman of the House Oversight Committee.

The investigation, which began in late 2025, included testimony from Walz and Ellison, members of the Minnesota state legislature's fraud committee, and nine current and former state officials who participated in transcribed interviews with congressional investigators.

The findings have already produced concrete consequences. Earlier this year, the Trump administration suspended nearly $260 million in federal Medicaid funding to Minnesota over the state's alleged failure to combat fraud.

Vice President JD Vance's anti-fraud task force has led to the arrest of eight individuals allegedly involved in healthcare fraud schemes and the freezing of $1.3 billion in payments to home health and hospice providers suspected of defrauding the government. The committee has sent Vance a letter urging a comprehensive review of Minnesota's social services programs for potential fraud vulnerabilities.

The report comes as the House prepares to consider a package of fraud-prevention legislation. According to a 2024 Government Accountability Office report, the federal government loses between $233 billion and $521 billion annually to fraud.

Spokespersons for Walz and Ellison did not immediately respond to requests for comment.