Hearing Wrap Up: Minnesota Governor Walz and Attorney General Ellison Lied About Knowledge of Fraud and Silenced Whistleblowers

WASHINGTON-Today, the House Committee on Oversight and Government Reform held a hearing titled "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part II." The Committee is continuing to investigate how criminals in Minnesota have ripped off an estimated $9 billion in taxpayer funds meant to feed children, provide housing for low-income and disabled Americans, and deliver critical healthcare to the vulnerable. During today's hearing, lawmakers emphasized that whistleblower testimony and information gathered by the Committee now shows that Governor Tim Walz and Attorney General Keith Ellison were aware of widespread fraud in Minnesota's social service programs, lied about their knowledge of the fraud, and retaliated against state employees who bravely raised concerns. Governor Walz and Attorney General Ellison testified today and repeatedly failed to provide lawmakers and the American people with a clear explanation of how such rampant fraud was allowed to flourish under their watch. As the Trump Administration continues its efforts to hold those responsible accountable, lawmakers stressed that Congress must also pursue legislative safeguards to protect American taxpayers.

Key Takeaways:

Testimony and information obtained by the Committee reveals that Minnesota Governor Tim Walz and Attorney General Keith Ellison were aware for years of widespread fraud in social service programs, lied to Americans about their knowledge of fraud, retaliated against state employees who raised concerns, and failed to take meaningful action.

• House Oversight Committee Chairman James Comer (R-Ky.) stated in his opening remarks: "For years, Governor Tim Walz and Attorney General Keith Ellison presided over one of the most extensive breakdowns of oversight this Committee has ever examined. Federal prosecutors estimate that as much as $9 billion may have been stolen from just fourteen Medicaid programs administered by the State of Minnesota. As our investigation has shown, it happened because state leadership failed, repeatedly, to intervene. We have spoken with over thirty whistleblowers, many of them current employees and Democrats, who say they were ignored, retaliated against, and even surveilled for raising concerns. Instead of protecting the whistleblowers, the Walz administration protected the system that enabled fraud. Governor Walz and Attorney General Ellison were warned repeatedly. Auditors raised red flags. Employees sounded alarms. Invoices didn't make sense. And still, the money kept flowing."

• Chairman Comer submitted for the record an interim staff report released today titled "The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota's Fraud Explosion. " The interim report, based on transcribed interviews with nine current and former Minnesota state employees and documents obtained to date, includes new explosive testimony revealing that senior officials in Minnesota state government - including Governor Tim Walz and Attorney General Keith Ellison - were aware for years of widespread fraud in federally funded social services programs, deliberately misled the American people about their knowledge of the fraud, possessed clear authority to safeguard taxpayer dollars, and repeatedly failed to take meaningful action.

By failing to act, Governor Walz and Attorney General Ellison allowed billions of taxpayer dollars to be stolen by fraudsters.

• Despite contrary claims to media, Minnesota Governor Tim Walz and Attorney General Keith Ellison were aware of credible fraud concerns as early as 2019 at the Minnesota Department of Human Services and by April 2020 at the Minnesota Department of Education.

• State agencies had clear legal authority to suspend or terminate payments to providers suspected of fraud, yet officials continued funding them, citing litigation threats and concerns about being perceived as racist rather than any actual legal barrier.

• Despite Governor Walz's claims, the Federal Bureau of Investigation never instructed Minnesota officials to continue payments to Feeding Our Future or any other provider under federal investigation for possible fraud. In the case of Feeding Our Future, the Minnesota Department of Education voluntarily continued payments despite identifying serious program deficiencies and no court order requiring payments to resume.

• As a result of these failures, an estimated $300 million in federal child nutrition funds and potentially $9 billion in Medicaid-related funds were lost or placed at significant risk.

Oversight Committee Democrats have failed to take fraud seriously.

• At today's hearing, Democrats failed to ask questions about the widespread fraud in Minnesota.

• During the Committee's nine transcribed interviews with Minnesota state health officials, Republican staff asked questions over a combined total of 36 hours and 46 minutes while Democratic staff only asked questions for a combined total of just 3 hours and 14 minutes.

While the Trump Administration prosecutes criminals, the House Oversight Committee will continue to investigate massive waste, fraud, and abuse of taxpayer funds in Minnesota and examine legislative safeguards to protect hardworking American taxpayers.

• House Oversight Committee Chairman James Comer (R-Ky.) concluded: "We are working with the Trump Administration, which is taking a whole-of-government approach to stop fraud before more money is stolen. Accountability shouldn't begin only after federal prosecutors step in and clean up the damage. Accountability should compel leaders to act and here, they didn't."
  
• To date, the U.S. Department of Justice (DOJ) has charged 98 defendants in Minnesota fraud-related cases - 85 of whom are of Somali descent. Sixty-four have already been convicted. The DOJ has also issued over 1,750 subpoenas, executed over 130 search warrants, and conducted over 1,000 witness interviews. Other federal agencies are freezing funding, halting grant programs, investigating public housing fraud, and strengthening program eligibility requirements.

Member Highlights:

Chairman James Comer (R-Ky.) emphasized that rampant fraud in Minnesota has harmed the most vulnerable Americans.

Chairman Comer: "While state officials hesitated, billions of taxpayer dollars were stolen from programs meant to serve children, the disabled, and families in crisis. What we've uncovered in Minnesota is not a paperwork error or a few bad actors slipping through the cracks. It is a sustained failure of leadership. We are taking oversight of fraud seriously, and today I hope the Democrats will do the same, but their track record is not promising."

During his questioning, Chairman Comer highlighted that the courts never ordered Governor Walz to resume payments to programs ripe with fraud. He pressed the Governor over his failure to halt the distribution of taxpayer funds to criminal actors. He further argued that the Governor moved to stop the flow of funds only after the Trump administration DOJ intervened in 2025.

Chairman Comer: "In the Feeding our Future case, Governor Walz and Attorney General Ellison publicly suggested that courts forced the state to continue payments. The judge in that case took the extraordinary step of publicly correcting them. The truth is the state made a choice once again to keep sending money out the door. The Feeding our Future scandal alone involved nearly $300 million stolen from programs meant to feed children during the pandemic. We're talking about fake invoices, meals that never existed, luxury cars, and overseas investments-all paid for by American taxpayers…

"Despite these warnings, you didn't stop payments. When fraud concerns were raised, did your administration stop payments? The answer is no. You didn't stop payments because you didn't want to rock the boat. The Democrat position is keep the money flowing. We all support programs for the vulnerable. But not fraud. You did eventually pause payments but that wasn't until late 2025 when the federal government stepped in, is that correct?"

Governor Walz: "We have been partners."

Chairman Comer: "This decision occurred after large-scale fraud was going on for years. But the agencies did raise concerns of fraud for years, correct?"

Governor Walz: "Yes…"
Rep. Jim Jordan (R-Ohio) criticized Governor Walz for misleading the public about his knowledge of widespread fraud in Minnesota and for failing to justify his administration's resumption of payments to fraudsters linked to the Feeding Our Future program.

Rep. Jordan: "Governor, why didn't you tell the truth? Why didn't you just tell the truth about the Feeding Our Future program? This program, my understanding, received $3 million. The first year, within a couple years was getting $200 million of taxpayer funds. Whistleblowers raised concerns as the chairman said. Auditors raised concerns. Everybody raised concerns. March 30th, 2021, the payments are stopped and a little over a month later, the payments are restarted. Why didn't you tell the truth about why you restarted the payments?"

Governor Walz: "Well, we did tell you."

Rep. Jordan: "And I asked that question. I said, 'why didn't you tell the truth about why you restarted the payments?' The payments stopped because there were concerns obviously. Then they restarted a month later. What was the reason for restarting the payments?"

Governor Walz: "The agency believed that the court had required them to make those payments."

Rep. Jordan: "And that was false, wasn't it?"

Governor Walz: "I can't tell you, Congressman."

Rep. Jordan: "Somebody's lying. Somebody's lying because you can't say the court ordered you to restart the payments. And then the court says, we didn't order you to restart the payments. So, either you're lying or the court's lying. And I'm just asking you, which one is it? And you can't tell me. 98 people have been indicted. Do you know how many are Somalian? 85%. A key voting bloc. I think that's what drove this whole thing."

Majority Whip Tom Emmer (R-Minn.) emphasized that Governor Walz has publicly acknowledged the existence of an active organized crime ring in Minnesota. In addition, he slammed Attorney General Ellison for claiming efforts to protect taxpayer dollars are political.

Majority Whip Emmer: "Can we agree that this fraud is a serious thing?"

Governor Walz: "Yes."

Majority Whip Emmer: "Is there an organized crime ring in Minnesota?"

[silence]

Majority Whip Emmer: "I will answer it for you. Governor Walz believes there is an active crime ring in Minnesota. In October, the Governor said, 'we got an active crime ring in Minnesota, and it's been going on for years.' This is a serious thing. The Attorney General says this is political. You are the only one who thinks protecting taxpayer dollars is political. Mr. Ellison, my concern is that you actively obstructed this investigation… If these concerns are proven to be true, you should be disbarred and you should go to jail."

Rep. Andy Biggs (R-Ariz.) pointed out that members of the Minnesota Somali community met with Attorney General Ellison to express concerns over being investigated for fraud. Attorney General Ellison later accepted political campaign contributions from the same Somali fraudsters.

Rep. Biggs: "Okay, so in 2021, you met with a group of Somalis, businesspeople. Those three people were there, Safari Restaurant Partners in Quality Care, also known as Parters In Nutrition, some of their named partners. And Feeding Our Future representatives, who said they were having difficulties because they were being investigated and that that conduct is very racist, xenophobic and Islamophobic. Do you remember that meeting?"

Attorney General Ellison: "Yes, I do…"

Rep. Biggs: "Well, let's go on from that because you may not remember some of the things you said to them… these people were being investigated for fraud. And you later took $10,000 in campaign donations from these same individuals. Do you remember that?"

Attorney General Ellison: "I would disagree with that characterization."

Rep. Biggs: "I'm sure it is uncomfortable for you, but you took $10,000 from those same people that were ostensibly supposed to be investigated, yeah?"

Attorney General Ellison: "No, that's inaccurate."

Rep. Biggs: "No, it's not inaccurate. You're entitled to say it's inaccurate, but the facts are the facts. You accepted money from these people committing fraud."

Rep. Virginia Foxx (R-N.C.) tore into Governor Walz and Attorney General Ellison for failing to take the abuse of taxpayer funds seriously. She highlighted that the Walz administration delivered over $300 million in taxpayer dollars to Feeding Our Futures, even after fraud in the program had been exposed.

Rep. Foxx: "I issued you a subpoena in September 2024 because you and your administration were not forthcoming about how your administration, quote, 'failed to identify what has been described as the largest pandemic fraud in the nation,' end quote, in September 2024. You are aware the Feeding Our Future fraud and your administration's handling of it, correct? Yes or no?"

Gov. Walz: "Yes." Rep. Foxx: "We now know Feeding Our Future received a total of over $300 million in federal funds. This is after you and your administration knew about the fraud concerns. Why didn't you stop sending money to Feeding Our Future? As soon as the fraud concerns were raised. Didn't you say you were fearful of political retaliation? That's what we understood. You were afraid of political retaliation. So given the size and scope of the Feeding Our Futures fraud, I think you and your administration would have been on high alert looking for additional fraud in the state. But after seeing the handling of Feeding our Futures, it came as no surprise to learn that even more staggering amounts of fraud, estimated at up to $9 billion, were uncovered in the childcare assistance program, the Minnesota Medicaid program, and other programs. How could you allow such massive fraud schemes in your state to get to this point?"

Rep. Tim Burchett (R-Tenn.) emphasized that the Committee has interviewed more than 30 Minnesota whistleblowers, many of whom testified that the Walz administration retaliated against them for raising concerns.

Rep. Burchett: "Have you ever used taxpayer funds, directly or indirectly, to take action against individuals suspected of disclosing potential wrongdoing within a government entity?"

Gov. Walz: "I have not."

Rep. Burchett: "Well, almost 30 whistleblowers accused you and your administration of retaliation. Would you say that's a conspiracy?"

Gov. Walz: "I can't speak to what they said."

Rep. Burchett: "Okay. Are you aware of reports alleging state officials have engaged in retaliation against whistleblowers?"

Gov. Walz: "Not specifically, no."Rep. Burchett: "You're not aware of that? When 30 have come forward? A whistleblower told our office that her supervisor at the Minnesota Department of Health and Human Services threatened to make her job difficult. And the supervisor that did that later received a promotion."

Rep. Brandon Gill (R-Texas) also voiced concerns that whistleblowers were silenced, arguing that disregarding their warnings has come at a significant cost to American taxpayers.

Rep. Gill: "How come multiple whistleblowers have said that your administration told them not to say anything about widespread fraud across multiple agencies, because doing so would be considered racist or Islamophobic?"

Gov. Walz: "I can't speak to it because that's not anything I would say."

Rep. Gill: "That's not what the whistleblowers are saying. But according to another report, quote, 'there's just a continuous effort to stifle you, to shut you up. And it's impossible to overcome.' Your administration's response to whistleblowers has also been described as, quote, nearly 'unbearable retaliation.' We've heard claims that, quote, 'they've been denied vacations, promotions and that it's hurt people's careers to speak out against fraud.' Do you think that that had something to do with the prevalence of fraud in your administration?"

Gov. Walz: "I can't speak to it."

Rep. Gill: "But are you going to take responsibility for this?"

Gov. Walz: "I certainly I supervise 40,000 employees.

Rep. Gill: "And as you have said, the buck stops with you, and your administration has treated whistleblowers like absolute dirt. And that's a big reason why we've seen so much of our hard-earned tax dollars defrauded."

READ MORE:

Comer Opens Hearing on Minnesota Fraud with Governor Walz and Attorney General Ellison

Oversight Committee Releases Explosive Testimony Revealing Minnesota Fraud Cover-Up by Governor Walz and Attorney General Ellison