MN GOP lawmakers testify about fraud before Congress Oversight Committee

WASHINGTON, D.C. (FOX 9) - Minnesota Republican lawmakers spoke before a U.S. House committee as it held its first of several hearings focused on continued efforts to uncover fraud in Minnesota.

Here are some of the highlights from today's hearing:

Why you should care:

Texas Republican points to alleged disproportionate reliance on aid

Rep. Brandon Gill, R-Texas, quickly questioned witnesses during a House Oversight Committee hearing Wednesday about the Somali community’s alleged involvement in widespread fraud uncovered in Minnesota. In an exchange with Brendan Ballou, a former federal prosecutor testifying for Democrats, Gill cited data he said showed a disproportionate reliance by Somalis in Minnesota on government assistance programs.

Democrats push back on Gill, urge focus on fraudsters rather than communities

Democrats at the hearing, including ranking member Rep. Robert Garcia, D-Calif., pushed back on Gill’s remarks, cautioning against making broad accusations about Somalis in Minnesota. "When people commit fraud and people are harmed, there should be consequences," Garcia said. "We want to hold fraudsters accountable and protect innocent victims, while ensuring that those who legitimately rely on services can continue to access them.

Lee clashes with Comer during tense House Oversight hearing

Rep. Summer Lee, D-Pa., clashed with House Oversight Committee Chairman James Comer during a tense committee hearing Wednesday as members debated allegations of fraud and oversight.

Jim Jordan accuses Democrats and media of dismissing election concerns

Rep. Jim Jordan said Democrats repeatedly insisted there was "no fraud" during past disputes, calling such claims "just made up." 

Jordan argued that what he described as a recurring pattern involves "the left" spreading falsehoods that are amplified by the media or left uncorrected when contrary information emerges. He also claimed that those who challenge the narrative are unfairly labeled racist, calling the dynamic "so wrong."

During a congressional exchange, Rep. Jim Jordan questioned former Minnesota official James Hudson about the state’s decision to resume payments to the nonprofit Feeding Our Future after briefly suspending them in March 2021. 

Hudson confirmed the payments were halted and then reinstated a month later, saying he believed the reversal followed pushback from members of the Somali community who accused state agencies of racial discrimination. 

Hudson added that a lawsuit was filed alleging racial bias. Jordan criticized the response, arguing that accusations of racism were used amid concerns about fraud and the continued distribution of funds.

Fraud in Minnesota Congressional hearing

What we know:

The House Oversight Committee’s first round of hearings titled "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part 1" started at 9 a.m.

The hearing was billed to include, "Minnesota state officials who have sounded the alarm on and investigated fraud in Minnesota's social services programs," with speakers such as state representative and GOP governor candidate Kristin Robbins (R-Maple Grove), in addition to Reps. Walter Hudson (R-Albertville) and Marion Rarick (R-Maple Lake).

Rep. Tom Emmer, an often vocal critic of Gov. Walz, and prominent Republican figure in the U.S. House, also attended.

Dig deeper:

The hearings were held in the wake of rampant fraud being discovered through state-administered programs relying on federal funds.

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.

First Assistant U.S. Attorney Joe Thompson has since announced a new round of charges related to fraud in autism, Medicaid and housing programs, while saying fraud so far uncovered could total as high as $9 billion or more.

President Donald Trump has become increasingly focused on Minnesota, targeting Somalis and criticizing Walz and other Minnesota Democrats in the process.

The hearing came a day after the Minnesota Office of the Legislative Auditor 

What they're saying:

"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," Republican chairman, Rep. James Comer, said in a statement.

Rep. Hudson spoke with FOX 9 Morning News on Jan. 4 about the upcoming hearing.

"My objective and the objective of my colleagues, Chair Kristen Robbins and Representative Marion Rarick, is to drag this back to the core issues of government oversight and program integrity and to enter facts into the congressional record and observations that are backed up with documentation and media reporting that indicate that we have a real problem here in the state of Minnesota," said Rep. Hudson.

What's next:

Though their attendance has yet to be confirmed, Gov. Walz and Minnesota Attorney General Keith Ellison have also been invited to testify before the committee on Feb. 10.

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