Politics
NEW: House Expands Probe Into Minnesota Welfare Fraud
The House Oversight Committee on Tuesday announced that it was significantly expanding its ongoing probe into Minnesota’s billion-dollar public welfare fraud scandals.
House Oversight Committee Cahir James Comer (R-KY) previously announced the investigation on December 3. In a press release, the committee stated that it was examining “widespread fraud in Minnesota’s social services programs under Governor Tim Walz’s watch, the state’s efforts to cover it up, and retaliation against whistleblowers who sought to protect taxpayer dollars.”
The initial letters requested documents, communications, and records from Minnesota Governor Tim Walz and Attorney General Keith Ellison, with a response deadline of December 17, 2025.
The probe focuses on allegations of massive fraud and money laundering in state-administered programs, including those related to Medicaid, child nutrition (such as the Feeding Our Future scheme, which involved more than $240 million in fraudulent claims), housing stabilization services, autism therapy, and other social services.
Federal prosecutors in Minnesota have charged over 90 individuals in related cases, with estimates suggesting potential losses in the billions of dollars across multiple programs. The committee has cited whistleblower accounts alleging data deletion, withheld records, and possible transfers of funds to foreign entities, including concerns about oversight of remittances.
Primary targets include current and former officials from the Minnesota Department of Human Services (DHS) and the Minnesota Department of Education.
On Tuesday, the committee expanded the probe by sending letters requesting transcribed interviews to seven individuals: Eric Grumdahl (former assistant commissioner, DHS), Emily Honer (director of Nutrition Program Services, Minnesota Department of Education), Daron Korte (assistant commissioner, Minnesota Department of Education), Tony Lourey (former DHS commissioner), Mary Cathryn Ricker (former Minnesota Department of Education commissioner), and others. The committee also requested information from federal agencies, including Suspicious Activity Reports from the U.S. Department of the Treasury and staff-level briefings from the Department of Justice.
“Whistleblowers have made it clear that American taxpayers were defrauded in Minnesota, raising serious questions about whether Governor Walz and Attorney General Ellison failed to act or was complicit in the theft,” Comer wrote in the new records request. The committee has further noted that Governor Walz has not fully cooperated with document requests.
The expanded investigation comes just days after federal prosecutors announced indictments against six additional individuals in connection with ongoing fraud schemes targeting public assistance programs.
The charges involve wire fraud related to a housing stabilization program and an autism services program administered through Medicaid. Five defendants face allegations tied to the housing program, while one is charged in the autism services scheme.
“The fraud is not small. It isn’t isolated. The magnitude cannot be overstated… What we see in Minnesota is not a handful of bad actors committing crimes. It’s a staggering, industrial-scale fraud,” said acting U.S. Attorney for the District of Minnesota Joseph Thompson. He further noted that the state “has become a magnet for fraud, so much so that we have developed a fraud tourism industry.”
In reference to the housing program, Thompson said most of the $300 million in spending is fraudulent. Thompson also indicated that when investigations conclude, total fraud in Minnesota-administered programs could exceed $1 billion, with losses potentially reaching several billions more across 14 Medicaid programs flagged for significant issues.
