Minnesota Gov. Tim Walz (D-MN) and Attorney General Keith Ellison acknowledged Wednesday that their state has been engulfed in a fraud scandal targeting federally funded social services programs, as House Republicans pressed them over what they described as delayed responses to massive schemes that could have siphoned off billions in taxpayer dollars.

The House Oversight and Government Reform Committee hearing came after Republicans released a report alleging the state’s Democratic leaders were aware of mounting welfare fraud in the state but failed to act quickly enough to stop it. The hearing revisited several scandals, including the $250 million Feeding Our Future child nutrition fraud case and alleged abuse across Medicaid, autism services, child care assistance, and housing programs.

Here are the key takeaways from the fiery hearing on Minnesota’s waste, fraud, and abuse.

Minnesota officials acknowledge widespread fraud across programs

Walz acknowledged that Minnesota has faced repeated fraud scandals across a range of social services programs funded by federal taxpayers.

Even “one dollar is too much” to have stolen, Walz said, describing the fraud rings that are targeting government programs as “sophisticated” and a “moving target.”

The Feeding Our Future case, which federal prosecutors say involved $250 million in pandemic-era child nutrition funds diverted through fraudulent meal distribution sites, was one of the main focal points of the hearing. More than 80 people have been charged in connection with the scheme, one of the largest pandemic-related fraud cases uncovered in the United States.

Ellison also acknowledged the scale of the problem but defended his position against allegations that he reassured any bad actors that the state would not target them, arguing that his office has aggressively pursued criminal cases. Lawmakers had questioned him about an audio recording of a 2021 meeting in which he appears to be backing Somali business leaders, some of whom were later prosecuted for their role in the Feeding Our Future scheme.

Walz pressed on timeline of when he learned of major fraud schemes

Republicans repeatedly pressed Walz on when he personally learned of fraud allegations and why the state did not move faster to halt payments once concerns emerged.

Rep. Nick Langworthy (R-NY) questioned the governor about why it took until 2023 for Minnesota to initiate an inspector general inquiry, despite mounting allegations of fraud across multiple social service programs.

“Why did it take you until 2023 to launch an investigation under an inspector general into this massive fraud that’s been uncovered?” Langworthy asked.

Walz disputed that characterization of the timeline, saying the state had been addressing fraud concerns for years through prosecutions and legislative changes.

“I don’t believe that timeline is correct,” Walz said. “We were making changes, and these cases have been brought forward years before.”

Let me remind Governor Walz of his own state constitution, which he swore an oath to uphold. The governor may be impeached for malfeasance or nonfeasance in the performance of official duties. The billions in fraud he allowed to be perpetrated —with whistleblowers ignored and… pic.twitter.com/AaQpOApV3u

— Congressman Nick Langworthy (@RepLangworthy) March 4, 2026

Langworthy pushed back, arguing that the state had delayed meaningful oversight despite warnings from lawmakers and whistleblowers.

“Your administration did hesitate for years to fully investigate this fraud,” Langworthy said, suggesting political considerations tied to Minnesota’s Democratic coalition may have discouraged earlier action.

“That accusation is totally false,” the governor said, adding that there would be no benefit to allowing fraud to undermine programs his administration supports.

Langworthy maintained that the state’s slow response allowed fraud to spread into multiple government programs, saying, “You clearly don’t have a handle on the numbers either, and you need a serious accounting effort in the state of Minnesota right now.”

Whistleblower retaliation claims come under scrutiny

Republicans also highlighted allegations that whistleblowers within Minnesota state agencies were discouraged from aggressively pursuing fraud investigations.

Former state employees have alleged retaliation or pressure to avoid cases involving Somali-linked providers due to concerns about appearing “racist, xenophobic, or Islamophobic,” according to the committee’s report that was released ahead of the hearing.

Rep. William Timmons (R-SC) pointed to findings from the state’s Legislative Auditor, in a report titled Roadmap to Program Integrity and Fraud Prevention, that identified major vulnerabilities in the child care assistance program shortly after Walz took office in 2019.

Those warnings included weak attendance verification, repeat bad actors cycling through programs, and employees who feared retaliation for reporting fraud.

“If the buck stopped with you, as you said, who failed between 2019 and 2022, and why were they not held accountable?” Timmons asked.

Walz rejected the idea that whistleblowers were silenced, saying the state maintains strong legal protections for employees who report misconduct.

“We have the strongest whistleblower protections we can possibly have,” Walz said.

Lawmakers probe whether political sensitivities slowed fraud enforcement

Republicans also questioned whether political sensitivities surrounding Minnesota’s large Somali immigrant community may have slowed enforcement actions.

Lawmakers referenced testimony from state officials who said investigators sometimes faced accusations of racism or Islamophobia when pursuing fraud allegations involving Somali-linked providers.

Timmons cited internal messaging at the Minnesota Department of Human Services that emphasized a culture of “compassion over compliance,” which he argued may have discouraged aggressive enforcement.

The lawmaker said that internal messaging by state DHS leaders encouraged staff to approach programs with a mindset that prioritized compassion over strict compliance with oversight rules.

Walz said there was an emphasis on protecting social safety net programs, but agreed that fraud prevention must remain a priority.

Walz says Minnesota reforms could be shared with other governors

Walz said he would welcome compiling a report outlining how Minnesota has attempted to tighten fraud controls following the scandals and sharing it with governors in other states.

During an exchange with Rep. Pete Sessions (R-TX), Walz said the policy changes his administration has pursued in response to the fraud cases could serve as a reference for other states grappling with similar issues.

“If you put together a list that we can send other governors and say, ‘Here’s what we did,’” Sessions said, before Walz said, “I would welcome that.”

Walz pointed to steps his administration has taken to strengthen oversight, including legislative changes and new fraud-detection tools, such as artificial intelligence pre-screening to identify suspicious applications before funds are distributed.

“There’s more work to be done,” Walz said, adding that the goal is to prevent fraud from occurring rather than simply prosecuting cases after funds have already been stolen.