Oversight Committee Finds Walz Administration Knew of Massive Fraud, Failed to Intervene

WASHINGTON – The House Oversight Committee concluded in a report released Wednesday that Minnesota Gov. Tim Walz's administration was aware of widespread fraud in state welfare programs as early as 2018 but failed to act, allowing schemes to cost taxpayers up to $18 billion.

The fraud involved social services, childcare benefits under the Child Care Assistance Program, and food aid programs like Feeding Our Future, which exploited federal COVID-19 relief funds. Prosecutors charged 47 individuals in a $250 million scheme through Feeding Our Future, the largest pandemic-era fraud identified. Additional probes revealed overbilling, kickbacks, and fake facilities in the childcare program, with fraud rates potentially exceeding 50% among top recipients.

Committee findings show Walz's office received warnings about childcare fraud in early 2019 and Feeding Our Future concerns by April 2020. Officials, including those from the Minnesota Department of Education and Department of Human Services, lied about their knowledge, resumed funding despite red flags, and retaliated against whistleblowers. In March 2021, the education department attempted to cut Feeding Our Future funding but reversed course a month later amid lawsuit fears, approving more sites without U.S. Department of Agriculture backing.

Chairman James Comer stated the administration "handed over billions in taxpayer dollars to fraudsters and threw their own state employees under the bus." Walz and Attorney General Keith Ellison are testifying before the committee today at 10 a.m. ET. The report highlights systemic failures under Walz's watch, prompting calls for accountability to protect public funds.