Minnesota fraud: US House committee to hold hearings, Walz invited to testify

Minnesota Governor Tim Walz, testifies during a Committee on Oversight and Government Reform hearing on "A Hearing with Sanctuary State Governors" on Capitol Hill in Washington, DC, on June 12, 2025. (Photo by Alex WROBLEWSKI / AFP) (Photo by ALEX WR … (Getty Images / Getty Images)

The U.S. House Committee on Oversight and Government Reform will hold hearings on fraud in Minnesota in early January, according to a press release. Minnesota Gov. Tim Walz is among those invited to testify at a second hearing in February. 

Fraud in Minnesota hearings

What we know:

Committee Chair James Comer (R-Kentucky) announced on Wednesday the committee will hold a hearing titled "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part 1" starting at 9 a.m. CT on Jan. 7. 

The hearing will include "Minnesota state officials who have sounded the alarm on and investigated fraud in Minnesota's social services programs," according to a news release. That includes Minnesota State Reps. Kristin Robbins (R-Maple Grove), Walter Hudson (R-Albertville) and Marion Rarick (R-Maple Lake). 

Gov. Walz and Minnesota Attorney General Keith Ellison have also been invited to testify before the committee on Feb. 10. 

What they're saying:

In a statement about the hearings, Comer said: 

"In addition to conducting transcribed interviews with Minnesota state officials, the House Oversight Committee will hold hearings on fraud in Minnesota’s social services programs to expose failures, identify solutions, and deliver accountability. Next week, we will hear from Minnesota state lawmakers who sounded the alarm on this fraud — and whose warnings were ignored by the Walz administration. This misconduct cannot be swept aside, and Congress will not stop until taxpayers get the answers and accountability they deserve."

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Minnesota GOP on fraud under Walz: 'Taxpayers are tired of being ripped off'

Minnesota Republican leaders gathered Monday on Zoom to discuss the ongoing fraud in the state under the Walz Administration. A YouTube influencer has gone viral for going to various child care providers in the state and exposing more than $100 million in potential fraud.

Comer added that Walz and Ellison "have either been asleep at the wheel or complicit in a massive fraud involving taxpayer dollars in Minnesota’s social services programs."

"American taxpayers demand and deserve accountability for the theft of their hard-earned money. The U.S. Department of Justice is actively investigating, prosecuting, and charging fraudsters who have stolen billions from taxpayers, and Congress has a duty to conduct rigorous oversight of this heist and enact stronger safeguards to prevent fraud in taxpayer-funded programs, as well as strong sanctions to hold offenders accountable," Comer said in the statement.

The other side:

A spokesperson for Gov. Walz told FOX 9 on Wednesday, "We’re always happy to work with Congress, though this committee has a track record of holding circus hearings that have nothing to do with the issue at hand. 

"While the governor has been working to ensure fraudsters go to prison, the president has been selling pardons to let them out."

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Minnesota AG Keith Ellison addresses viral fraud claims, ICE activity and his 2026 priorities

Minnesota Attorney General Keith Ellison joins us to respond to a viral video alleging fraud in the state, discuss the latest ICE activity in the Twin Cities and outline his priorities for the Attorney General’s Office heading into 2026.

A spokesperson for Ellison told FOX 9 on Wednesday, "Since he was first elected, Attorney General Ellison and his Medicaid Fraud Control Unit have prosecuted over 300 Medicaid fraud cases and won over $80 million in recoveries and restitution for the people of Minnesota. Attorney General Ellison also led a bipartisan push to expand the resources and tools available to his Medicaid Fraud Control Unit during Minnesota's last legislative session and plans to do so again in 2026. Attorney General Ellison has put fraudsters in prison while defending our tax dollars and the services they pay for.

"Attorney General Ellison will review Representative Comer's invitation and respond at the appropriate time."

Fraud in Minnesota

Dig deeper:

The hearing comes as Gov. Walz is under ever-increasing criticism for how his administration has handled rampant fraud in state-administered federal programs. The issue is a huge liability for Walz, who is running for a third term as governor, as opponents accuse him of doing too little to stop fraud and his administration of retaliating against whistleblowers.

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Political professor discusses Minnesota fraud impact

Hamline University Professor David Schultz spoke live about the impact the widespread fraud investigations have had on Minnesota politics. He also touched on the ongoing ICE operations in the state and President Trump's backing of Mike Lindell for governor. 

In recent months, as more fraud schemes have been uncovered, the Walz administration has taken steps to combat the fraud, suspending or pausing licensing for programs that have raised red flags. In October, the state began auditing the 14 high-risk Medicaid programs and earlier this month, Gov. Walz tapped Tim O'Malley to head a state fraud prevention program.

Walz agrees the issue is serious and requires significant attention, but accuses opponents of amplifying it for political gain, especially as the state faces increased publicity and scrutiny over fraud in state programs.

READ MORE: Through the years: A decade of investigating fraud in Minnesota

This week, YouTuber Nick Shirley's video alleging fraud at Somali-run day care centers in Minneapolis went viral, prompting the federal government to freeze all child care payments to the state of Minnesota

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DHS investigating widespread fraud at MN daycares

The Department of Homeland Security says it is sending its investigators on "door-to-door" visits to "suspected fraud sites" in Minnesota as part of a crackdown effort. FOX 9's Mary McGuire has the story.

In response to this, Walz posted on social media, "This is Trump’s long game. We’ve spent years cracking down on fraudsters. It’s a serious issue — but this has been his plan all along. He’s politicizing the issue to defund programs that help Minnesotans."

Over the weekend, FBI Director Kash Patel announced he was intensifying the agency's investigation into fraud in Minnesota. Monday, Sec. Kristi Noem announced the Department of Homeland Security was doing "door-to-door" visits at "suspected fraud sites."

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Gov. Walz responds to $9 billion fraud accusations

Gov. Walz responded on Friday to speculation from federal prosecutors that fraud throughout Minnesota’s service programs could total more than $9 billion. FOX 9’s Rob Olson has the latest.

All this comes days after First Assistant U.S. Attorney Joe Thompson announced a new round of charges related to fraud in autism, Medicaid and housing programs. During the news conference, Thompson said fraud against 14 vulnerable Medicaid programs in Minnesota is just the tip of the iceberg, suggesting Medicaid program fraud could total as high as $9 billion or more.

READ MORE: Fraud in Minnesota: Detailing the nearly $1 billion in schemes

However, Walz and officials from the Department of Human Services (DHS) said there’s no evidence to suggest a number anywhere near that much.

It should be noted, fraud against the Federal Child Nutrition Program, including the massive Feeding our Future scheme, is estimated to have bilked $300 million from taxpayers, according to federal prosecutors. Prosecutors suspect fraud against the state's Housing Stabilization Program and autism programs also could number in the hundreds of millions of dollars.

Days after Thompson announced new charges, the House Committee on Oversight and Government Reform to expand its investigation into Medicaid fraud in Minnesota.

All of this has been happening as President Donald Trump has become increasingly focused on Minnesota, targeting Somalis and criticizing Walz and other Minnesota Democrats. 

Fraud in MinnesotaTim WalzKeith EllisonMinnesotaPolitics