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Minnesota Governor Tim Walz Faces Backlash Over Alleged $18 Billion Fraud Scandal

Stella Green, December 30, 2025

Rep. Pete Stauber, R-Minn., stated on Tuesday that Minnesota Gov. Tim Walz has not taken accountability for billions in fraud committed against the state and its legal residents.

Stauber said fraudulent claims paid by the state government total between $9 billion and $11 billion, with some estimates reaching as high as $18 billion. He claimed these funds were fraudulently used by members of the Somali community in Minneapolis under Walz’s watch for years.

“This has happened for the last six, seven, eight years,” Stauber said. “Walz allowed this massive theft to occur.”

Stauber noted that his state party leader, Alex Plechash, did the right thing by demanding Walz resign. “Our GOP chair in Minnesota is right to challenge Tim Walz on staying in office.”

“Minnesotans are outraged at this fraud,” Stauber added. “We’re looking at hundreds of millions of dollars in fraud at day care centers, healthcare facilities, medical transport, and autism centers.”

He also said that Walz’s administration threatened and monitored DHS whistleblowers who came forward.

Stauber claimed that Walz has been protected by some state media outlets until he became a national candidate. “You know, the Minneapolis media shielded Tim Walz until he became a national candidate,” he said.

“We knew that when the national media would expose him, they would find out that he is a major disappointment for the state of Minnesota to allow this fraud to happen.”

Stauber expressed confidence that the Trump administration will hold all involved responsible. “I am glad that the Trump administration is coming to Minnesota to save us from this fraud,” he said.

Conservative YouTuber Nick Shirley has been credited with uncovering much of the fraud through a video showing locations where alleged fraudulent activity occurred, which went viral with tens of millions of views.

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