Fox New host Trey Gowdy said Wednesday that Democratic Minnesota Gov. Tim Walz dodged a much bigger political backlash because the money that was used to help alleged fraudsters flowed not through the state capitol but instead through Washington, D.C.

Walz’s administration recently faced fraud allegations tied to Somali-run operations in the Minneapolis–St. Paul area. During a panel on “Special Report with Bret Baier,” Gowdy said the sheer size of the federal government creates cover, letting misconduct slip through layers of bureaucracy that would not exist at the state level.

“I think the issue that Republicans don’t talk about enough is [that] this is what you get when you have [a] massive federal government,” Gowdy told host Bret Baier. “The bigger something is, Bret, the more places it has to hide. So if this were Minnesota tax dollars we were talking about, Tim Walz would be running for his life. But it’s not. It’s money from Florida and Texas and South Carolina.”

Gowdy said that sprawling federal programs create cover for abuse that would trigger immediate backlash at the state level. (RELATED: Walz Administration Says It ‘Strengthened Oversight’ After Viral Documentary Highlights Fraud Claims)

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“We’ve just accepted this level of fraud that most Americans don’t accept at all. So there have already been convictions. There’ll probably be more. But the metaphor here is the smaller the federal government is, the less places you have to hide,” Gowdy said.

Minnesota-based YouTuber Nick Shirley posted a video Friday showing several purported Somali-run daycare centers—including one that reportedly took in $4 million in taxpayer funds—that appeared to have no children present. The 43-minute video shows Shirley visiting multiple state-funded facilities and repeatedly finding empty rooms, while KSTP reported that the Quality “Learing” Center racked up 95 violations from a Minnesota agency between 2019 and 2023.

Assistant U.S. Attorney Joe Thompson said on Dec. 18 that the alleged fraud in Minnesota’s Medicaid program has surpassed $9 billion. Several state employees claimed Walz retaliated against whistleblowers who flagged the schemes and as federal prosecutors pursued multiple cases. Walz said the state “attracts criminals” and urged the public not to demonize Somali residents.

The Department of Health and Human Services froze childcare payments to Minnesota Tuesday amid fraud allegations.

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