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A Republican-led congressional oversight report alleges that top Minnesota officials, including Gov. Tim Walz, D-Minn., has failed for many years to warn about fraud in the country’s social services programs, allowing hundreds of millions of dollars in confirmed or suspected losses and putting millions of millions at risk.
The Walz administration had the power to stop fraudulent payments to high-risk companies receiving nutrition and Medicaid funds, but the state “repeatedly failed to act” after officials raised concerns, according to a 205-page final staff report released by the House Oversight Committee on Monday.
Congressional investigators found that concerns about potential claims of racial discrimination — rather than legal hurdles — influenced the Walz administration’s decision to continue paying suppliers accused of fraud. The committee also spoke with nearly 30 detectives, some of whom accused the Walz administration of retaliating against federal employees for raising the alarm about possible fraud.
“Fraud alerts were raised to the highest levels of Minnesota state government, reasonable corrective actions were delayed or avoided, and payments continued long after signs of fraud appeared,” the report said.
House Oversight Committee Chairman James Comer, R-Ky., asked Vice President JD Vance to look into fraud prevention deficiencies in Minnesota’s welfare programs after his committee’s 205-page final report was released Monday. (Andrew Harnik/Getty Images)
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The committee found that Minnesota accounted for approximately $300 million in stolen nutrition funds intended to feed hungry children during the COVID-19 crisis and that approximately $9 million in Medicaid billings may have been fraudulent, an estimate that federal prosecutors said was disputed by the Walz administration.
Walz allegedly knew about fraud related to the now-defunct Feeding Our Future nonprofit that operated dozens of fake food sites in 2020, but payments continued to flow to the group for nearly two more years. The oversight panel also found that Walz gave conflicting answers when he first heard about the food fraud.
Federal prosecutors have charged more than 110 people in connection with various fraud schemes in the state. Many of the defendants in the Feeding Our Future case have been identified as members of Minnesota’s Somali immigrant community, in connection with various fraud schemes in the state. Some of those convicted of fraud used the stolen money to buy luxury items and federal officials have investigated whether some of it was sent abroad to aid terrorist groups in Somalia and the Middle East.
“Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for the spectacular failure of oversight of the Committee,” Comer said in a statement. “It is now clear that the Walz Administration has chosen to protect the program over protecting the taxpayer.”
The report covers a months-long investigation into the Walz administration’s handling of widespread fraud, which began in late 2025 and includes hearing testimony from Walz and Attorney General Keith Ellison and members of the Minnesota state legislature’s fraud committee. Nine current and former federal officials also participated in written interviews with congressional investigators.
The task force is investigating alleged health care fraud in California and Ohio as part of an ongoing battle against Republicans.
Minnesota Gov. Tim Walz testifies during a House Oversight and Government Reform Committee hearing at the US Capitol in Washington, DC, on March 4, 2026. The hearing examined allegations of misuse of federal funds for Minnesota’s social services and Medicaid programs. (Anna Moneymaker/Getty Images)
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The committee sent a letter to Vice President JD Vance urging a full review of Minnesota’s social services programs regarding potential fraud vulnerabilities, following the report’s findings.
Vance’s anti-fraud task force has led to the arrest of at least eight people allegedly involved in health care fraud schemes and the freeze of $1.3 billion in payments to home and hospice providers accused of defrauding the government.
Earlier this year, the Trump administration froze nearly $260 million in Medicaid funding going to Minnesota over the Walz administration’s alleged failure to fight fraud.
The Trump administration also required states to demonstrate that they are actively investigating possible Medicaid fraud or the risk of losing federal funding.
Vice President JD Vance is joined by White House deputy chief of staff and Homeland Security adviser Stephen Miller and Federal Trade Commission (FTC) Chairman Andrew Ferguson during a roundtable discussion on anti-fraud initiatives on May 26, 2026, in Washington, DC. (Andrew Harnik/Getty Images)
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This report comes as the House is expected to consider anti-fraud bills this week. Republicans have argued that new legislative tools are needed to prevent fraud at the federal level amid allegations of ineffectiveness.
The federal government loses an estimated $233 billion to $521 billion annually to fraud, according to the Government Accountability Office’s 2024 report.
