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Congress Escalates Pressure on Minnesota Leadership

Congressional Republicans have intensified scrutiny of Minnesota’s leadership, calling on Governor Tim Walz and Attorney General Keith Ellison to testify before the House Oversight and Government Reform Committee over a sprawling social services fraud scandal that has shaken the state and drawn national attention.

House Oversight Chair James Comer announced that Walz and Ellison have been invited to appear before the committee on February 10, following the Trump administration’s decision to freeze hundreds of millions of dollars in federal child-care funding to Minnesota. The hearing is expected to examine how large-scale fraud was able to persist across multiple state-administered programs over several years.

An earlier hearing scheduled for January 7 will feature Minnesota officials and investigators who initially flagged irregularities or worked on early fraud probes.

Allegations of Widespread Abuse of Taxpayer Funds

Republicans allege that Minnesota’s social services programs were plagued by weak oversight and enforcement failures that allowed scammers to siphon off taxpayer money on a massive scale. According to federal prosecutors, investigations now span more than a dozen Medicaid-funded and child-care-related programs, with estimates suggesting that as much as half of the roughly $18 billion spent since 2018 may have been improperly claimed or stolen.

One of the most high-profile cases involves the Feeding Our Future nonprofit, which prosecutors say was at the center of a Covid-era scheme that allegedly diverted $250 million in federal nutrition funds. Dozens of defendants have been charged in that case alone.

House Republicans argue these cases are symptomatic of a deeper breakdown in governance. Comer accused Walz and Ellison of either failing to act on warning signs or being complicit in allowing fraud to continue unchecked.

White House Signals Broader Crackdown

The controversy has moved beyond Minnesota. White House press secretary Karoline Leavitt said federal investigators are examining whether similar patterns of fraud exist in other Democratic-led states, including California and New York.

She said Minnesota is only the starting point and that additional states could face funding freezes or federal intervention if verification and enforcement systems are deemed insufficient.

President Donald Trump has echoed that message, framing the Minnesota case as part of a broader effort to crack down on fraud in public benefit programs nationwide.

Immigration Rhetoric Raises Tensions

The investigation has also taken on a charged political and cultural dimension. Trump has repeatedly claimed that a large share of the fraud in Minnesota is linked to individuals of Somali descent, a statement that has intensified scrutiny of the state’s sizable Somali American community.

Attorney General Pam Bondi said that 98 individuals have been charged so far in connection with Minnesota fraud cases, with more than 60 convictions secured. According to Bondi, 85 of those charged are of Somali descent, and additional prosecutions are expected.

Trump has called for the deportation of non-citizens implicated in fraud schemes and has publicly attacked Democratic leaders from Minnesota, including Rep. Ilhan Omar, using inflammatory language that has drawn sharp criticism from civil rights groups and Democratic lawmakers.

State Leaders Push Back

Walz’s office rejected accusations of negligence or political retaliation, saying the governor has consistently supported efforts to prosecute fraud and strengthen oversight.

A spokesperson for Walz criticized the House Oversight Committee, arguing it has a history of turning hearings into partisan spectacles rather than pursuing substantive solutions. The statement also accused the Trump administration of undermining due process while publicly attacking state officials.

Ellison, in a separate response, defended his record, stating that his office has prosecuted more than 300 Medicaid fraud cases since 2019 and recovered over $80 million in restitution and settlements for Minnesota taxpayers. He also said his office is reviewing legal options to challenge the federal freeze on child-care funds, calling the move reckless and potentially unlawful.

Federal Actions Intensify the Spotlight

The funding freeze followed a viral video circulated by a conservative influencer that allegedly showed shuttered or non-operational child-care centers receiving federal payments. The video reignited public anger over long-standing allegations that fake or poorly monitored facilities were used to exploit federal programs.

In response, the Department of Health and Human Services announced a nationwide verification system for child-care payments, along with a new fraud-reporting hotline. Federal officials said funds will remain frozen until states demonstrate that payments are being properly verified and monitored.

FBI Director Kash Patel also confirmed a surge of federal agents into Minnesota to support ongoing investigations.

Vice President JD Vance praised the administration’s actions, calling payment verification a critical step toward restoring accountability and preventing further losses.

Political Fallout Grows

The scandal has fueled calls for Walz to resign from Minnesota Republicans, including House Majority Whip Tom Emmer, who accused the governor of presiding over one of the largest public fraud crises in state history.

With multiple investigations ongoing, billions of dollars under scrutiny, and Congress preparing high-profile hearings, the Minnesota fraud case is quickly becoming a national test of how aggressively the federal government will police state-run social services programs and hold political leaders accountable for oversight failures.