A House committee report released Monday accuses Democratic Minnesota Gov. Tim Walz's administration of failing to stop fraud in taxpayer-funded social service programs and retaliating against state employees who raised concerns about misuse of public funds.
The report, issued by the House Committee on Oversight and Government Reform, concluded that Minnesota state leaders were aware of fraud concerns for years but failed to take available steps to halt payments or remove questionable providers from government programs.
"Minnesota Gov. Tim Walz and Attorney General Keith Ellison are responsible for one of the most stunning oversight failures this committee has ever examined," Chair James Comer, R-Ky., said.
"Billions of dollars were stolen because Minnesota state leaders turned a blind eye to rampant fraud and retaliated against state employees who dared to raise concerns," he added.
The report states that Minnesota leaders were aware of credible fraud concerns as early as 2019 and had the authority to suspend payments to providers suspected of misconduct without waiting for action from courts, law enforcement agencies, or the federal government.
According to the findings, state agencies continued directing taxpayer dollars to Feeding Our Future and other high-risk entities despite identifying significant program deficiencies.
The report also alleges that concerns about litigation and accusations of discrimination were cited as reasons for continuing payments rather than taking action against suspected fraud.
Investigators reviewed testimony and documents from current and former state officials, including commissioners, agency leaders, compliance officials, and former Walz chief of staff Chris Schmitter.
The committee concluded that state employees who raised fraud concerns faced retaliation while senior administrators focused on managing political and public fallout from emerging scandals.
The report estimates that failures in oversight contributed to $300 million in lost federal child nutrition funding and potentially placed as much as $9 billion in Medicaid-related funds at risk.
Several of those conclusions mirror findings released last month by the Minnesota House Fraud Prevention and State Agency Oversight Committee.
That report accused the Walz administration of ignoring warning signs, downplaying fraud concerns, retaliating against whistleblowers, and failing to hold those responsible accountable.
"The Walz administration enabled fraud by having a culture that accepted fraud, tolerated fraud, tried to suppress fraud in some ways, and did not hold anyone accountable," Minnesota Rep. Kristin Robbins, R-Maple Grove, told St. Paul's KSTP-TV.
Democrats on the state committee disputed those conclusions.
Rep. Dave Pinto of St. Paul described the report as containing "some good information" but also "a lot of errors" and partisan speculation.
Comer also urged Vice President JD Vance and the White House Task Force to Eliminate Fraud to conduct a review of Minnesota's social service programs and anti-fraud controls.