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

MINNEAPOLIS (FOX 9) - A group of Minnesota House and Senate Republicans is calling for Gov. Tim Walz to resign amid allegations of significant Medicaid fraud during his administration. They're also seeking accountability from the Walz administration related to other ongoing fraud investigations under his watch.

The latest being potential fraud at Minnesota child care centers, exposed recently by a YouTuber.

GOP reacts to viral video 

What we know:

Earlier this month, First Assistant U.S. Attorney Joe Thompson suggested it was possible that as much as half or more of $18 billion paid through 14 Medicaid waiver programs could be fraudulent. Minnesota State Senators Bill Lieske and Nathan Wesenberg, along with State Representatives Marj Fogelman, Drew Roach, and Mike Wiener, have urged Gov. Walz to step down.

The legislators referenced Article 8, Section 6 of the Minnesota Constitution, which mentions serious malfeasance or nonfeasance as grounds for recalling officials.

They clarified that they are not initiating a recall, but believe the situation warrants resignation. A joint statement from the legislators emphasized that the call for resignation is not politically motivated but is based on the need for accountability. They expressed concerns over the persistent fraud and lack of action from Gov. Walz, stating that Minnesotans deserve better leadership. 

A YouTube influencer recently in Minnesota visited several child care centers and reportedly uncovered more than $100 million in fraud. FBI Director Kash Patel called it "just the tip of the ice berg."

"Our caucus has been working to expose fraud for years and hold the Walz administration accountable. The amount of attention and outcry that you are seeing is a direct result of the massive frustration from Minnesota taxpayers who are tired of being ripped off by fraudsters," said Lisa Demuth, Speaker of House of Representatives.

FOX 9 has done extensive reporting on the prosecution of fraud against the federal child nutrition program, including the massive Feeding our Future scheme dating back to 2022. Along with our extensive, years-long coverage of the Feeding Our Future scheme, FOX 9 has also looked into fraud cases connected to the Feeding Our Future fraud, like fraud against the Housing Stabilization program, an autism program, and – more recently – charges filed for fraud against an Intergrated Community Services program.

GOP steps for Walz Administration

Dig deeper:

Demuth, speaking for the Minnesota GOP on Monday, outlined six steps they are looking for Walz and his administration to take to combat and put an end to the fraud.

• Release the documents related to fraud requested by media and fraud committee.
• Release any records related to inspections of sites identified in the viral video.
• Redirect available resources to unannounced in-person site visits.
• Conduct a full review of money directed to Non-Government Organization by state agencies. That’s as basic as confirming IRS status, cross-checking for connections to indicted fraudsters.
• Consider stopping payments for the other 13 high-risk programs.
• Gov. Walz should ask Attorney General Keith Ellison to withdraw lawsuit against federal officials seeking to stop redetermining process by U.S. Department of Agriculture.

Should Gov. Walz resign?

What they're saying:

Republican officials in the House and Senate on Monday called for Gov. Walz to resign over the ongoing fraud during his tenure as governor. Demuth didn't hold back in her reaction.

"There’s almost $9 billion of suspected fraud. To have a governor in his second term that has allowed this to go on under his watch, under his administration for this long, taxpayers are fed up with this," Demuth said. "They’re frustrated, we’ve watched our state budget explode, watched our taxes and fees go up. Minnesota taxpayers across the state are done with funding fraud here in the state, that’s the frustration we are hearing."

Gov. Walz responds

What they're saying:

The Office of Gov. Walz issued a statement Monday in response.

"The Governor has worked for years to crack down on fraud and asked the state legislature for more authority to take aggressive action. 

He has strengthened oversight – including launching investigations into these specific facilities, one of which was already closed. He has hired an outside firm to audit payments to high-risk programs, shut down the Housing Stabilization Services program entirely, announced a new statewide program integrity director, and supported criminal prosecutions."