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A Republican-led congressional oversight report alleges that top Minnesota officials, including Gov. Tim Walz, D-Minn., failed for years to act on warnings about fraud in the state’s social services programs, allowing hundreds of millions of dollars in confirmed or suspected losses and putting billions more at risk.
The Walz administration had the power to stop fraudulent payments to high-risk entities receiving federal 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 limitations, contributed to the Walz administration’s decision to continue paying providers suspected of fraud. The committee also spoke with nearly 30 whistleblowers, some of whom accused the Walz administration of retaliating against state employees for raising the alarm about possible fraud.
“Fraud warnings were raised to the highest levels of Minnesota state government, significant corrective action was delayed or avoided, and payments continued long after credible signs of fraud emerged,” the report reads in part.
House Oversight Committee Chairman James Comer, R-Ky., asked Vice Chairman JD Vance to examine deficiencies in fraud prevention in Minnesota’s social services programs after Monday’s release of his committee’s 205-page final staff report. (Andrew Harnik/Getty Images)
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The committee found that Minnesota is estimated to have lost $300 million in stolen federal nutrition funds intended to feed hungry children during the COVID-19 pandemic and that up to $9 billion in Medicaid billing may have been fraudulent, an estimate attributed to a federal prosecutor and disputed by Walz administration officials.
Walz was allegedly aware of fraud associated with the now-defunct nonprofit Feeding Our Future that operated a constellation of fake food sites as early as 2020, but payments continued to flow to the group for about two more years. The oversight panel also found that Walz gave conflicting answers about when he first learned of widespread meal fraud.
Federal prosecutors have charged more than 110 people in connection with various fraud schemes in the state. Many defendants in the Feeding Our Future case have been identified as members of Minnesota’s Somali immigrant community, in connection with several fraud schemes in the state. Some of the convicted fraudsters used the stolen money for luxury purchases, and state officials have investigated whether some of it was funneled abroad to help terrorist groups in Somalia and the Middle East.
“Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for one of the most astonishing oversight failures this Committee has ever examined,” Comer said in a statement. “It is now clear that the Walz administration chose to protect the system rather than protect the taxpayer.”
The report caps a month-long investigation into the Walz administration’s handling of widespread fraud, which began in late 2025 and included hearing testimony from Walz and Attorney General Keith Ellison, as well as members of the Minnesota state legislature’s fraud committee. Nine current and former state officials also participated in transcribed interviews with congressional investigators.
The panel is also investigating alleged health care fraud in California and Ohio as part of Republicans’ ongoing “war on fraud.”
Minnesota Governor Tim Walz conducts evidence during a House Committee on Oversight and Government Reform hearing at the U.S. Capitol in Washington, DC, on March 4, 2026. The hearing examined alleged 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 complete review of Minnesota’s social services programs for potential fraud vulnerabilities, following the report’s findings.
Vance’s anti-fraud task force has led to the arrest of at least eight people who allegedly participated in health care fraud schemes and the freezing of $1.3 billion in payments to home health and hospice providers suspected of defrauding the government.
Earlier this year, the Trump administration suspended nearly $260 million in federal Medicaid funding for Minnesota over the Walz administration’s alleged failure to crack down on fraud.
The Trump administration has also required states to show they are aggressively investigating possible Medicaid fraud or risk losing federal funds.
Vice President JD Vance joined White House Deputy Chief of Staff and National Security Advisor 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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The report also comes as the House is expected to consider a series of fraud prevention bills this week. Republicans have argued that new legislative tools are needed to prevent fraud at the state level amid alleged inaction.
The federal government is estimated to lose between $233 billion and $521 billion annually due to fraud, according to a 2024 report from the Government Accountability Office.