Minnesota Leaders Admit to Years of Fraud and Retaliation Against Whistleblowers

Rep. James Comer, chair of the House Committee on Oversight and Government Reform, stated that testimony delivered under oath at a recent House hearing established that Minnesota Gov. Tim Walz and Attorney General Keith Ellison not only knew about widespread fraud involving federal funds but also retaliated against whistleblowers who tried to expose it.

Comer said state lawmakers testified that warnings about the misuse of federal social program dollars had been brought to Walz and Ellison for years, not months or weeks.

“They said under oath that people have been warning Gov. Walz and Attorney General Ellison for years that this fraud has been ongoing,” Comer said. “When state employees and other credible whistleblowers would come forward with their concern about this massive amount of fraud, Walz would retaliate against them. That is a crime.”

The hearing focused on federal programs administered by Minnesota agencies, including child care, food assistance, housing, and human services. State lawmakers testified that billions of dollars might have been lost through fraud enabled by weak oversight and ignored warning signs.

Minnesota state Rep. Marion Rarick, R-Maple Lake, testified that whistleblowers at the Department of Human Services consistently warned leaders about fraud, but agency officials instead monitored employees discussing the issue and created a climate of fear. Rarick said whistleblowers’ concerns about retaliation intensified as fraud revelations mounted.

State Rep. Walter Hudson, R-Albertville, testified that reports from the nonpartisan Office of the Legislative Auditor repeatedly identified Minnesota’s social programs as “unacceptably vulnerable” to fraud, with payments often made before verification and oversight capacity failing to keep pace with spending. Hudson cited long-standing problems across programs including child care, food aid, and housing services, noting that warning signs were documented well before losses escalated.

State Rep. Kristin Robbins, R-Maple Grove, chair of the House Fraud Prevention Committee, said Walz’s administration “willfully turned a blind eye” to crimes despite whistleblower reports, audits, and investigative journalism. Robbins testified that taxpayer dollars were diverted to luxury properties and overseas assets, and said accountability was long overdue.

Comer stated the testimony laid the groundwork for criminal referrals, emphasizing that witnesses testified under oath and understood the consequences of providing false information. “This was about getting people on the record who are in the know,” Comer said. “These are some of the most powerful people in the state of Minnesota.”

“They said, in fact, Gov. Walz knew about the fraud and retaliated against anyone who would proclaim fraud.”

Comer added that the departments of Homeland Security, Agriculture, and Housing and Urban Development are investigating in Minnesota. He said federal investigators are working to quantify losses and pursue those responsible. “I think we’re finally going to see a lot of people in handcuffs,” Comer said.