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House Oversight Committee Republicans are readying to confront Minnesota Gov. Tim Walz and state Attorney General Keith Ellison at a high-stakes hearing on welfare fraud Wednesday morning.
“While Governor Walz hesitated, taxpayers lost billions. Attorney General Ellison has likewise claimed his office was aggressively holding fraudsters accountable, but when his statements were tested against the record, they fell apart,” Chairman James Comer, R-Ky., will say, according to prepared opening remarks obtained by Fox News Digital.
“We have spoken with over thirty whistleblowers, many of them current employees and Democrats, who say they were ignored, retaliated against, and even surveilled for raising concerns. Instead of protecting the whistleblowers, the Walz administration protected the system that enabled fraud.”
Hours before the hearing kicked off, the committee released a 53-page report that accused both Walz and Ellison of knowing about the fraud allegations far earlier than previously thought.
“While the Committee continues to review documents and meet with whistleblowers, it is evident that Governor Walz and Attorney General Ellison knew about the fraud in federal programs administered by the State of Minnesota much earlier than they told the American people,” the report said.
“Transcribed interviews with current and former public officials from the State of Minnesota have confirmed that Governor Walz and Attorney General Ellison would have been aware of fraud in the [Child Care Assistance Program (CCAP)] and high-risk Medicaid programs administered by DHS as early as spring 2019 and fraud in [state food aid] programs administered by [the Minnesota Department of Education] as early as April 2020.”
Both Walz and Ellison previously pushed back on any accusations that they knowingly allowed fraud in Minnesota’s social programs, and have accused Republicans of politicizing the situation.
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The high-profile hearing is the culmination of a months-long probe by the House Oversight Committee targeting allegations of fraud in Minnesota.
The panel previously interviewed current and former officials within the state’s government, including those focused on food aid.
Federal prosecutors in Minnesota have charged multiple people with stealing more than $240 million from the Federal Child Nutrition Program through the Minnesota-based nonprofit Feeding Our Future. However, the probe has since widened to multiple state-run programs being investigated for potential fraud. Childcare providers receiving state funding, mainly within the Somali community, are also under scrutiny.
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And the committee’s report accused the state’s progressive leadership of ignoring evidence of fraud in a bid to appease the Somali community in Minneapolis.
“The Committee has found that Minnesota lacked adequate oversight efforts to verify that taxpayer dollars were being used appropriately and could have stopped the flow of money to fraudsters at any time but chose not to for fear of political retribution from the politically active Somali community,” the report said.
“Further legislative efforts at the federal level are necessary to prevent this massive waste, fraud, and abuse of federal dollars from ever happening again.”
In his opening statement, Comer will call the scandal “one of the most extensive breakdowns of oversight this Committee has ever examined.”
“Billions of taxpayer dollars were stolen from social services programs while warnings piled up, whistleblowers spoke out, and state officials chose delay and denial over action,” he will say.
“Federal prosecutors estimate that as much as $9 billion may have been stolen from just fourteen Medicaid programs administered by the State of Minnesota. As our investigation has shown, it happened because state leadership failed, repeatedly, to intervene. What we’ve uncovered in Minnesota is not a paperwork error or a few bad actors slipping through the cracks. It is a sustained failure of leadership.”
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Meanwhile, Democrats on the committee have accused Comer of trying to distract from the fallout of President Donald Trump’s immigration crackdown in Minneapolis — including the killing of two U.S. citizens by federal agents.
“I encourage folks to watch those videos and see what’s happened for themselves. And I’m hopeful that this committee investigates this incident and that we have full accountability,” Rep. Robert Garcia, D-Calif., said during a previous hearing on Minnesota fraud.
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