WASHINGTON – House Oversight Committee Chairman James Comer, R-K.Y., on Wednesday accused Minnesota Gov. Tim Walz and Minnesota Attorney General Keith Ellison of allowing fraud and misuse of federal welfare funds in Minnesota. Rep. Comer alleged that billions in taxpayer dollars were stolen while state officials delayed action and dismissed whistleblower warnings.
“What we’ve uncovered in Minnesota is not a paperwork error or a few bad actors slipping through the cracks. It is a sustained failure of leadership,” Comer said.
Federal investigators allege that since 2018, a sweeping fraud scheme has siphoned half or more of the $18 billion in federal funds for 14 Minnesota-run social programs intended for child nutrition, services for autistic children, housing for low-income and disabled Americans, and Medicaid for vulnerable residents. Nearly 100 people have been charged so far, with dozens already convicted.
In December 2025, the Committee began investigating the responses from Walz and Ellison, and lawmakers accused state leaders of ignoring warnings from whistleblowers who suffered retaliation for raising alarms.
Walz told the committee he has zero tolerance for wasted taxpayer dollars and testified that his administration has cooperated with the Department of Justice and taken actions to hold those accused of fraud accountable.
“There’s undoubtedly more to do. We’ll continue to do the important work of combating fraud, but as we do so, we’re going to remain true to Minnesota principles,” Walz said. “We will feed our hungry children, we will help the poor afford healthcare, we will assist people with disabilities, while also keeping fraud in check.”
Ellison praised Walz’s response to the fraud cases and said his office works daily to hold suspects accountable. He cited efforts to push bipartisan legislation in the Minnesota legislature that would expand resources to prosecute Medicaid fraud outside the state’s jurisdiction. He stressed that coordination among investigators is essential to combating fraud.
However, Ellison argued that Operation Metro Surge had disrupted the fraud investigation and harmed Minnesota communities and its economy. He mentioned Immigration and Customs Enforcement agents detaining children, prompting school closures and sowing fear among residents. Two U.S. citizens were killed during the Surge, which is part of President Donald Trump’s deportation operation
“That is why, if we are going to discuss law enforcement efforts in Minnesota, we cannot ignore the devastating effect of Operation Metro Surge,” Ellison said.
Walz asked for Congress’ help in investigating fraud.
“I’m with you, I want your help on fraud,” Walz said as he gestured to the GOP side of the Committee. “Why would I not want money to go to the programs I care deeply about feeding people, clothing people, housing people?”
Rep. Virginia Foxx, R-N.C., pressed Walz to explain when he became aware of the fraud cases in the Feeding Our Future program. During the COVID-19 pandemic, the non-profit claimed to distribute meals to school children but was found to have stolen hundreds of millions of dollars while providing few or no meals.
“I think by late 2020, we started to see the irregularities. And I will note that we cooperated,” Walz said.
“State officials were aware of the fraud in early 2020,” Foxx said.
Foxx continued to probe Walz on why it took him so long to act on the fraud charges. She accused Walz of being afraid of “political retaliation.”
“Governer Walz, you did not do your job. You did not protect taxpayer dollars. You allowed massive fraud. You and Mr. Ellison allowed massive fraud to go on in the state of Minnesota,” Foxx said.
Rep. Tom Emmer, R-Minn., pressed both Ellison and Walz on when they became aware of the alleged misconduct and questioned their interactions with alleged Somali suspects involved in the charges.
“If these concerns are proven to be true, you should be disbarred and you should go to jail,” Emmer said heatedly.
Trump has repeatedly blamed Minnesota’s Somali community for the state’s alleged fraud. Most people charged in the fraud were of Somali descent, either U.S. citizens or legal residents.
Rep. Ro Khanna, D-Calif., asked Ellison to comment on the Somali community, and the attorney general said Somali Minnesotans are highly educated and contribute positively to the state.
“If you pick out a few people who’ve done wrong, sure, you can do that, but I can guarantee you, you can do that in any ethnic group at all in the state of Minnesota or anywhere in America,” Ellison said.