WASHINGTON D.C. – Federal attention on Minnesota’s public benefit programs is intensifying as the U.S. House Oversight and Government Reform Committee has invited Minnesota Governor Tim Walz and Attorney General Keith Ellison to testify amid claims of large-scale fraud tied to state-run social services.
Committee Chairman James Comer (R-Ky.) announced the invitations on December 31, 2025, as prosecutors weighed losses that could reach into the billions. Those numbers have fueled sharp arguments about weak oversight during the two Democratic leaders’ time in office.
The committee is looking at what Comer called widespread fraud in federal programs. That list includes child nutrition funding, Medicaid, and housing assistance. The best-known case involves the Feeding Our Future nonprofit, which prosecutors say took more than $250 million in COVID-era child meal funds.
New disclosures and ongoing cases suggest investigators see bigger problems, including what some have described as industrial-scale schemes across multiple programs.
The current wave of cases grew during the COVID-19 pandemic. Federal rules for child nutrition programs were loosened, which made it easier for nonprofits to claim meal reimbursements. Prosecutors have charged more than 90 people, many tied to Minnesota’s Somali community, with moving public funds into personal spending. Court filings describe purchases such as luxury vehicles, real estate deals, and money sent overseas.
Minnesota Whistleblowers Blame Walz and Ellison
Investigators and auditors say red flags appeared earlier than the pandemic. State audits and whistleblower accounts point to weak controls in programs handled by the Minnesota Department of Education and the Department of Human Services, including concerns raised as early as 2019, soon after Walz took office.
One widely cited pattern involved sites that claimed to feed thousands of kids each day, even though investigators say the meals were not served. Other cases alleged billing for services that were not provided, including autism treatment claims and housing-related services.
U.S. Attorney Joseph Thompson has warned that fraud could touch as much as half of $18 billion billed across 14 Medicaid programs labeled “high-risk” since 2018. That would put possible losses around $9 billion. Walz and other state officials push back on that figure.
They point to court records and reviewed cases that they say show confirmed fraud of closer to $218 million. Reporting by outlets such as the Minnesota Star Tribune has also tracked long-running concerns, including audits that critics say were ignored and claims of retaliation against whistleblowers.
Republican state lawmakers argue early warnings did not get enough attention. Comer has said Walz and Ellison were “asleep at the wheel or complicit,” and he has pointed to allegations involving cover-ups and missing or deleted records.
Committee Hearings Put Fraud Oversight in the Spotlight
The Oversight Committee’s first hearing, “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I,” is set for January 7, 2026. It plans to hear from three Republican members of the Minnesota House, Reps. Kristin Robbins, Walter Hudson, and Marion Rarick.
The lawmakers have argued for years that state programs were open to abuse. Robbins, who chairs the state’s Fraud Prevention and Oversight Committee, has been one of the most active voices on the issue.
A second hearing on February 10, 2026, includes direct invitations to Walz and Ellison. Comer said the committee wants clear answers, adding that taxpayers deserve an accounting of how federal money was stolen.
The committee has also requested documents from the governor and attorney general, Treasury Suspicious Activity Reports, and interviews with state officials. Comer has signaled subpoenas could follow if cooperation stays limited.
The new hearings follow Comer’s earlier steps, including letters sent in December 2025 that sought records on what state leaders knew about fraud and how they responded. The probe is also unfolding as the Trump administration takes its own actions, including a freeze on certain federal child care funds to Minnesota, while stricter checks are put in place. Walz has criticized that move as political.
Walz and Ellison Push Back
Tim Walz’s office has said it will work with Congress, but it has also criticized the committee’s approach and warned against turning the issue into a spectacle. A spokesperson pointed to steps the state says it has taken, including hiring more investigators, increasing audits in high-risk areas, closing operations flagged as suspicious, and supporting prosecutions. Walz has said his administration has referred cases to law enforcement and asked lawmakers for stronger tools.
Ellison has highlighted his office’s record on Medicaid fraud. He has pointed to more than 300 prosecutions and about $80 million recovered since 2019. His office is also reviewing legal options tied to federal funding freezes, arguing the cuts affect lawful programs that serve families who rely on assistance.
Supporters of the administration say many schemes took advantage of federal pandemic waivers. They also say state officials alerted federal agencies, including the USDA and FBI, early in some cases. They argue that some actions moved slowly due to court orders and federal requests to avoid interfering with investigations.
Bigger Stakes for Taxpayers and Public Programs
Whistleblowers and Republican critics disagree. They claim politics and relationships slowed tougher oversight. Some defendants have been reported to have donated to Democrats, including Ellison. Critics also say concerns about community tensions, including within Minneapolis’s large Somali-American population, may have shaped enforcement choices.
The Minnesota cases are now a national example of what can happen when large sums move quickly through public programs. With the DOJ bringing charges and claims that money flowed overseas (including allegations in some reports tying funds to terrorist-linked networks), the consequences reach past state politics.
Congressional hearings could also shape future federal policy. Committee leaders say they want tighter controls on how aid is approved and paid out, along with stronger penalties for those who exploit the system.
Walz and Ellison now face a public test of transparency and accountability. The Oversight Committee’s work signals a new phase in how Congress pressures state leaders over federal dollars. The core issue remains unchanged: massive fraud lasted for years, and the public wants proof it won’t happen again.
