Grassley Presses for Answers Amid Widening Minnesota Fraud Scandal

Grassley Presses for Answers Amid Widening Minnesota Fraud Scandal

WASHINGTON - Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) is calling on federal agencies to provide answers in the wake of widespread government fraud and whistleblower retaliation allegations in Minnesota.

In a letter to the Department of Justice (DOJ) and Federal Bureau of Investigation (FBI), Grassley requested additional information regarding the Minnesota fraud investigation, the new Assistant Attorney General for fraud position and plans to investigate fraud in other states. Grassley also wrote to the Small Business Administration (SBA), the Departments of Treasury, Health and Human Services (HHS), Education, Agriculture (USDA), Homeland Security (DHS) and the Transportation Security Administration (TSA) regarding potential nationwide fraud in public grant programs, suspicious financial transactions in Minnesota and the agencies' efforts to safeguard taxpayer dollars.

Grassley is urging the federal agencies to protect and empower whistleblowers - including those who were reportedly retaliated against by Minnesota Governor Tim Walz's administration, according to congressional testimony.

"As you are aware, public reporting has emerged regarding deplorable fraud schemes in Minnesota that deliberately targeted federal programs designed to assist children with autism, the elderly and small businesses," Grassley wrote. "Any attempt to steal taxpayer money is utterly unacceptable; however, these crimes are especially heinous when they target programs which support Americans struggling to care for their children or elderly relatives."

Specifically, Grassley pointed to allegations of extensive fraud in Medicaid, Paycheck Protection Program (PPP) loans, the Supplemental Nutrition Assistance Program (SNAP) and the Federal Student Aid (FAFSA) program. Grassley also requested information on Treasury's ongoing investigation into stolen Minnesota tax dollars that may have been diverted to terrorist organizations, and recent statements from DHS officials that alleged "nearly $700 million in cash [was] detected in passengers' luggage leaving the Minneapolis airport [over] the last two years."

Read Grassley's letters below:

• DOJ and FBI
• USDA
• SBA
• Treasury
• HHS
• Education
• DHS and TSA

Background:

On December 28, 2025, FBI Director Kash Patel announced the FBI had deployed personnel and investigative resources to Minnesota to "dismantle large-scale fraud schemes exploiting federal programs." On January 6, 2026, the Trump administration froze approximately $10 billion in federal funding for programs in Minnesota, New York, California, Illinois and Colorado, citing fraud concerns. On January 8, 2026, the Trump administration announced the creation of a new division for national fraud enforcement and the appointment of a new Assistant Attorney General focused on fighting fraud.

Grassley welcomed the Assistant Attorney General announcement and last week joined the entire Senate Republican Conference in demanding accountability from Walz.

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