Hearing Wrap Up: Minnesota Governor Walz and Attorney General Ellison Ignored Rampant Taxpayer Fraud and Silenced State Whistleblowers

WASHINGTON—Today, the House Committee on Oversight and Government Reform held a hearing titled “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I.” Criminals in Minnesota have stolen an estimated $9 billion in taxpayer funds intended to feed children, support autistic children, house low-income and disabled Americans, and provide healthcare to vulnerable Medicaid recipients. Members of Congress and the Minnesota state lawmakers who testified described how many of these schemes were concentrated within the Minnesota’s Somali community, with some taxpayer dollars diverted to terrorist networks overseas. State lawmakers testified that Governor Tim Walz and Attorney General Keith Ellison failed to take action to address this widespread fraud and have retaliated against whistleblowers who raised concerns. As the Trump Administration continues its efforts to hold those responsible accountable, Congress must also pursue legislative solutions to better protect American taxpayers.

Key Takeaways:

Fraudsters stole an estimated $9 billion from Minnesota’s social services system, yet Governor Walz, Attorney General Ellison, and Minnesota Democrats ignored warnings, failed to act, and retaliated against whistleblowers.

• House Oversight Committee Chairman James Comer (R-Ky.) stated in his opening remarks: “Federal prosecutors estimate these criminals have stolen at least $9 billion. The breadth and depth of this fraud is breathtaking. And I fear it is just the tip of the iceberg. Governor Tim Walz, Attorney General Keith Ellison, and Minnesota’s Democratic leadership have either been asleep at the wheel or complicit in these crimes. They failed Minnesotans and all Americans, handing millions of taxpayers’ money to fraudsters. They failed children and others in Minnesota. They failed their own state employees, some of whom have come forward as whistleblowers. How could they allow this massive fraud to go on for YEARS? This is why we are here. We must expose this theft of taxpayer dollars and hold everybody accountable who let it happen. The American people demand jail time for those who stole their hard-earned money and accountability for officials who sat by as resources were drained.”

• Minnesota State Representative Kristin Robbins testified: “Tim Walz and his Administration have willfully turned a blind eye to crime, in the face of countless whistleblower and Auditor reports, as well as stories by local investigative journalists and Bill Glahn a fellow at Center of the American Experiment. These are actual crimes that must be punished. They are crimes against our moral values that erode trust in government. Governor Walz has known about fraud for years and failed to act.”
  
• Minnesota State Representative Marion Rarick stated: “I am a member serving on the Minnesota House Fraud Prevention and State Agency Oversight Policy Committee. I message with whistleblowers almost daily. Their message has been consistent. They are grateful for our attention to this fraud. They have explained that they live in a constant fear of retaliation. A former compliance specialist stated Minnesota DHS functions in the opposite manner as you would think. Minnesota employees who suggest improvements or heaven forbid report fraud face significant retaliation. The messenger is shot. In 2019, employees alerted Minnesota DHS officials to sloppy contracting practices that were not legally compliant. They were later escorted out of the building. Faced lengthy investigation and received an involuntary transfer.”

President Trump and his Administration are taking a whole-of-government approach to root out rampant fraud in Minnesota, including holding fraudsters accountable for stealing from hardworking American taxpayers.

• To date, the U.S. Department of Justice (DOJ) has charged 98 defendants in Minnesota fraud-related cases – 85 of whom are of Somali descent. Sixty-four have already been convicted. The DOJ has also issued over 1,750 subpoenas, executed over 130 search warrants, and conducted over 1,000 witness interviews.
• The Department of Homeland Security (DHS) is on the ground going door-to-door conducting large-scale criminal and Homeland Security investigations. This has not been limited to daycares but any facility that may have fraud. DHS is surging resources to Minnesota and has arrested 1,000 illegal aliens in the past few weeks.
• The Department of Health and Human Services (HHS) has frozen $185 million in funding to Minnesota and now requires a justification, receipt, or photo evidence for all childcare-related payments nationwide, required Minnesota to conduct a full audit of childcare centers, and launched a fraud reporting tool at Childcare.gov.

• Other federal agencies are halting grant programs, investigating public housing fraud, and strengthening program eligibility requirements. 

The House Oversight Committee will continue to investigate massive waste, fraud, and abuse in Minnesota’s social services programs and use this investigation as a blueprint to expand oversight to other states.

• The House Oversight Committee is investigating the extensive money laundering and fraud in Minnesota’s social services programs that has been uncovered by the U.S. Attorney for the District of Minnesota. Chairman Comer has called on Minnesota Governor Tim Walz and Attorney General Keith Ellison to provide documents, communications, and records about widespread fraud that occurred under their watch. He has also called on them to appear for a public hearing on February 10, 2026.

• Chairman Comer has also requested the U.S. Department of the Treasury provide all relevant Suspicious Activity Reports (SARs) to support the Committee’s investigation into fraud in Minnesota. 
• Chairman Comer has also requested transcribed interviews with several Minnesota state officials.

Member Highlights:

Chairman James Comer (R-Ky.) emphasized that rampant fraud in Minnesota has harmed the most vulnerable Americans.

Chairman Comer: “The fraudsters – many of whom are from Minnesota’s Somali community – have stolen from programs meant to feed needy kids, provide services to autistic children, house low-income and disabled Americans, and provide healthcare to vulnerable Medicaid recipients. How many children have gone hungry because fraudsters stole money that was intended to provide them with food? How many autistic children were denied services because fraudsters instead sent this money overseas? How many low-income seniors, people with disabilities, or those with mental illnesses were denied access to housing because fraudsters drained resources and pocketed the money for themselves?”

Chairman Comer also detailed a new audit report showing that Minnesota’s Department of Human Services intentionally backdated documents and awarded nearly $680,000 to a grantee without evidence that any work was performed. The state employee who approved the payment resigned days later and went to work for that same grantee. Chairman Comer said the findings point to rampant corruption under Governor Tim Walz’s watch and argued that American taxpayers deserve better.

Chairman Comer: “Yesterday Minnesota’s office of the legislative auditor published an audit of the state’s department of human services behavioral health administration grants. The cover letter of this audit report states quote ‘however during the course of our audit we identified a number of documents that the behavioral Health Administration either backdated or created after our audit happened.’ It sounds like Governor Tim Waltz’s DHS may have been fabricating evidence by creating documentation after the fact to mislead auditors. This new report noted that one grantee who received nearly $680,000 from this agency for one month’s work could not provide any documentation or proof that any work was actually completed. The report even notes that the grant manager who approved this money left the agency within days of approving the grant to take a job with the very same grantee that they approved money for. Have you ever seen anything like this in your time as a member of the Minnesota’s fraud prevention and state agency oversight Policy Committee?”

State Rep. Robbins: “Whistleblower reports show backdating and falsification. We also have a record of childcare fraud where they would allow the providers to submit records far after the investigation and just accept them as true. So clearly this has been a pattern at the agency and it’s unacceptable.”

Chairman Comer: “Unbelievable. We want to work with you. We want to work with these whistleblowers. We’re serious about this. The Trump Administration’s on the ground. We want to catch these people. We want to put them behind bars, and we would hold any politician that participated in these schemes accountable. We need people to go to jail or this will continue.”    

Rep. Brandon Gill (R-Texas) highlighted rampant child welfare fraud in Minnesota’s Somali communities and State Representative Robbins confirmed that Governor Tim Walz was aware of the taxpayer fraud for years but failed to intervene.

Rep. Gill: “Ms. Robbins, when would you say we concretely knew that widespread welfare fraud was occurring in Minnesota?”

State Rep. Robbins: “There have been reports since 2009 from the office of legislative auditor. I would say the credible reports on childcare fraud started surfacing 2011 to 2013.”

Rep. Gill: “So for over a decade.”

State Rep. Robbins: “Yes, sir.”

Rep. Gill: “When do you think Governor Walz knew about this fraud?”

State Rep. Robbins: “From the very beginning. He was running for governor in 2018, when there were prosecutions going on, when there was an old report, active cases in the news all the time.”

Rep. Gill: “And what was the Walz administration’s response?”

State Rep. Robbins: “They actually did nothing when they got into office. And Lieutenant Governor Peggy Flanagan had been on the committee in the legislature that had hearings on childcare fraud. And when they got into office, they did put $5 million into a little more money, but nothing changed.”

Majority Whip Tom Emmer (R-Minn.) slammed Governor Walz for retaliating against dozens of Minnesota whistleblowers who raised concerns to safeguard taxpayer dollars.

Majority Whip Emmer: “You all have an understanding that 1000 whistleblowers running an account on X have come forward to expose fraud in Minnesota state agencies, and they have been entirely ignored by Tim Walz and have even been retaliated against. Is that accurate?”

State Rep. Rarick: “That is correct. Even this morning I got another message.”

Majority Whip Emmer: “Well, in your experience, are their claims credible or are they politically motivated against Walz?”

State Rep. Rarick: “They’re completely credible, not politically motivated.”

Majority Whip Emmer: “In fact, many of these are Walz administration employees, correct?”

State Rep. Rarick: “They are Democrats as well.”

Majority Whip Emmer: “Can you quickly give us one example of the retaliation these folks have been facing?”

State Rep. Rarick: “Yes, I can. In my opening statement, I mentioned that the most severe ones [were] that they would be fired with cause, so they couldn’t have unemployment insurance, that they would be blacklisted from all state agencies. And I would bet, I bet that it’s also Hennepin County and Ramsey County, as you know, those are Democrat run, and much, much more.”

Majority Whip Emmer: “Based on what you’ve learned representative over the last several years, do you have any doubt that Governor Tim Walz knew about this fraud as it was occurring?”

State Rep. Rarick: “He absolutely knew that it was occurring.”

Majority Whip Emmer: “It’s clear that someone is criminally complicit. You can’t just let this amount of money get out of your administration over a period of seven years without knowing there was a hearing in the state regarding the fraud. But before that hearing, Governor Walz fired the official who was slated to testify so that they could not testify.”

Rep. Jim Jordan (R-Ohio) blasted the Walz administration for not only failing to prevent widespread fraud but actively facilitating it for political gain.

Rep. Jordan: “There was a meeting that took place between the Attorney General and affiliates of Feeding our Future, is that right? 

State Rep. Hudson: “That is correct.” 

Rep. Jordan: “What happened at that meeting? They’re on trial now.”

State Rep. Hudson: “We have it on tape. There was an audio recording made at that meeting that was entered into evidence in the trial, and it was later revealed Attorney General Keith Ellison was focused on one thing and one thing only. That was keeping these folks in business. There were no questions that he asked of these folks about how the kids are doing and how they’re getting fed. Instead, the focus was entirely on ensuring that the money continues to flow. I’ll add that he went so far as to say that he was going to fight these people in reference to the state agencies.” 

Rep. Jordan: “You said money’s going to flow. Did the money flow to Mr. Ellison’s campaign a couple weeks later… Is that accurate?” 

State Rep. Hudson: “Sure did.”

Rep. Jordan: “They aren’t just overlooking the fraud they are assisting. They’re going after whistleblowers as your colleague pointed out and they’re benefiting from all this politically with contributions to their campaign not to mention getting votes. Is that all accurate.” 

State Rep. Hudson: “I believe so.”

Rep. Jordan: “Have any of you ever seen anything like this? I have never seen anything like this.”

State Rep. Robbins: “No sir we’ve never seen anything on this scale. It is unbelievable and it is breathtaking.”

Rep. Virginia Foxx (R-N.C.) noted how Minnesota fraudsters are stealing from American taxpayers to purchase luxury cars, homes, vacations, and live lavish lifestyles.

Rep. Foxx: “According to the FBI, the $250 million in federal taxpayer money stolen was funneled into luxury cars, homes and lifestyles… The Committee is back today because this fraud is just the tip of the iceberg. Do you all believe the Walz administration serious pursued whistleblower reports of fraud?”

State Rep. Rarick: “I think the Walz administration seriously retaliated against whistleblowers. Threats of firing them.”

Rep. Foxx: “Innocent American taxpayers are collateral damage in their reckless disregard for taxpayer funds. Hardworking American communities are left to pay the price.”

Rep. Byron Donalds (R-Fla.) warned that reports show Americans’ hard-earned money is being siphoned off by fraudsters and funneled to terrorist networks overseas.

Rep. Donalds: “I want to talk about use of funds. You’ve talked about some of these funds [being] used to buy property in Kenya. Property in Turkey. Do I have that correct?”

State Rep. Robbins: “Yes.”

Rep. Donalds: “Somalia?”

State Rep Robbins: “Yes.”

Rep. Donalds: “I think it’s important for the Committee to understand that these remittances, in part, are used in what’s called the ‘Hawala.’ I want to make sure the terminology is right. The ‘Hawala Network.’ Miss Robbins, can you speak to what the Hawala network is?”

State Rep. Robbins: “Yes. So it’s an informal network where someone brings, goes to a place, in Minneapolis—which is like a money exchange or a money sending site—and they say, ‘I want to send X amount of dollars.’ And then there’s a receiving site in Somalia. And they put the cash, take the cash out, so money doesn’t cross the border. It’s an order for money here that gets transmitted to Somalia.”

Rep. Donalds: “Because I’m out of time, I want to expound in Somalia and other parts in the Middle East, in the Middle East region writ large, a Hawala network is a bunch of money exchangers hand-to-hand, not bank account to bank account.”

State Rep. Robbins: “Exactly.”

Rep. Donalds: “And what is clear in Somalia and other parts is that Al-Shabab, the largest Al-Qaeda affiliate in Somalia, they have their hands all through this network. So taxpayer money, United States dollars that are being remitted into Somalia, in part, have been utilized, or have fallen into the hands, of Al-Shabab. Do you think that’s a correct assessment?”

State Rep. Robbins: “Yes. We have plenty of evidence of that.”

READ MORE: 

Chairman Comer Opens Hearing on Massive Fraud in Minnesota’s Social Programs