U.S. House Oversight Committee calls on Walz to testify in Minnesota fraud probe
House Oversight Chair James Comer has asked Gov. Tim Walz to testify at a Feb. 10, 2026 hearing (with an initial session Jan. 7) into alleged large‑scale fraud in Minnesota social‑services programs, accusing state leaders of being “asleep at the wheel or complicit.” Federal prosecutors and the FBI say fraud in 14 high‑risk Medicaid programs — roughly $18 billion in spending since 2018 — could be in the multi‑billion‑dollar range, while the Walz administration and state auditors say they’ve only documented tens of millions to date and are coordinating cross‑agency audits and investigations amid mounting political pressure.
📌 Key Facts
- Federal prosecutors say roughly $18 billion was spent on 14 "highly vulnerable" Minnesota Medicaid/human‑services programs since 2018 and Assistant U.S. Attorney Joe Thompson warned fraud could be "half or more" of those claims, suggesting potential fraud in the multi‑billion‑dollar (possibly $9B+) range; prosecutors called it "industrial scale" and expect additional charges.
- Minnesota officials — including Gov. Tim Walz, DHS Deputy Commissioner John Connelly and DHS Inspector General James Clark — dispute the $9B upper‑bound, saying they have only seen evidence in the "tens of millions," have not received documentation supporting the larger estimate, and Clark has asked the U.S. Attorney’s Office to share information.
- House Oversight Committee Chair Rep. James Comer has expanded the congressional probe, sending letters requesting transcribed interviews from state agencies, asking for briefings and evidence tied to whistleblower claims (as reported), and announcing hearings: a Jan. 7, 2026 panel featuring state lawmakers who "sounded the alarm," and a Feb. 10, 2026 hearing to which Gov. Walz and AG Keith Ellison have been invited (the committee has formally called on Walz to testify).
- Comer accused Walz and Ellison of being "asleep at the wheel or complicit" in alleged large‑scale fraud; Walz’s office said he is willing to work with Congress but dismissed the committee’s events as "circus hearings," while highlighting steps his administration has taken to combat fraud.
- The Walz administration says it has taken multiple actions: requesting more anti‑fraud authority from the Legislature, launching investigations into specific facilities, hiring an outside firm to audit high‑risk Medicaid programs, shutting down Housing Stabilization Services, and creating a statewide program‑integrity director.
- State agencies have ramped up coordination and oversight: audits of 14 high‑risk programs began in October, agencies now share data and meet monthly (with BCA involvement), data analytics improvements allow faster suspension of suspect payments, roughly 200 anonymous tips have been received via a new portal, and a meeting is planned to share fraud information directly with federal prosecutors.
- Federal law‑enforcement leaders have signaled aggressive, ongoing investigations: prosecutors and FBI Director Kash Patel described existing convictions/indictments as "just the tip of the iceberg," pledged to "follow the money," and said additional enforcement actions are likely.
- The controversy has produced political fallout and misinformation: some GOP state legislators have publicly called for Walz’s resignation invoking constitutional malfeasance language, 98 mayors linked alleged fraud to rising local property taxes, and a Trump‑amplified conspiracy video tied the scandal to other events — Rep. Melissa Hortman’s children asked President Trump to remove the video, and federal prosecutors dismissed a related allegation by Vance Boelter as "fantasy and delusion," saying he acted alone.
📊 Relevant Data
In 2024, approximately 107,000 people of Somali descent lived in Minnesota, representing about 2% of the state's total population of around 5.7 million.
By the numbers: Minnesota's Somali population, according to Census data — KTTC
Somali immigrants in Minnesota have a poverty rate of 37.5% among adults, compared to 6.8% for native-born non-Hispanic Whites in the state.
Somali Immigrants in Minnesota — Center for Immigration Studies
The majority of Somalis in Minnesota arrived as refugees fleeing civil war in Somalia, with resettlement beginning in the 1990s through programs facilitated by organizations like Lutheran Social Services and Catholic Charities, drawn by job opportunities and existing community networks.
How did MN get the nation's largest Somali population? — Star Tribune
Pandemic-era waivers in Minnesota's child nutrition programs relaxed oversight and verification requirements starting in 2020, which prosecutors say enabled fraud schemes that exploited these programs, leading to convictions in cases involving over $250 million.
Federal Jury Finds Feeding Our Future Mastermind and Co-Defendant Guilty in $250 Million Fraud Scheme — U.S. Department of Justice
Somali Minnesotans have a poverty rate of about 36% from 2019 to 2023, more than triple the U.S. overall poverty rate of 11.1%.
Inside 'Little Mogadishu': Minnesota's beleaguered Somali community and its push for belonging — Fox News
In Minnesota fraud schemes, individuals from the Somali community are overrepresented in convictions, with federal prosecutors noting that the billion-dollar fraud was perpetuated mainly by Somali immigrants, far exceeding their 2% population share.
How Misreading Somali Poverty Led Minnesota into Its Largest Welfare Scandal — American Enterprise Institute
📰 Source Timeline (12)
Follow how coverage of this story developed over time
- Introduces a specific new Trump‑amplified conspiracy video tying the Hortman assassination, Gov. Walz, MNsure immigrant coverage cuts, and the broader Minnesota fraud scandal.
- Reports that Rep. Melissa Hortman’s son Colin and daughter Sophie issued detailed public statements asking President Trump to remove the video and apologize, describing how such conspiracies mirror the beliefs of their parents’ killer.
- Clarifies that federal prosecutors have formally dismissed Vance Boelter’s letter to the FBI claiming Walz ordered other killings as 'fantasy and delusion' and that investigators say Boelter acted alone.
- Reiterates that the House Oversight Committee has formally called on Gov. Tim Walz to appear at a Feb. 10, 2026 hearing focused on alleged fraud in Minnesota social‑services programs.
- Reemphasizes that the probe is framed by committee Republicans as examining whether state leadership was 'asleep at the wheel or complicit' in allowing large‑scale fraud.
- Underscores that Minnesota’s programs under scrutiny include multiple human‑services streams whose combined federal and state spending since 2018 is estimated around $18 billion, with federal prosecutors publicly floating potential fraud totals in the multi‑billion‑dollar range.
- House Oversight Committee Chair James Comer announced a hearing titled "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part 1" set for 9 a.m. CT on Jan. 7, 2026.
- A second hearing is scheduled for Feb. 10, 2026, for which Gov. Tim Walz and AG Keith Ellison have been invited to testify.
- The Jan. 7 panel will feature Minnesota state lawmakers Kristin Robbins, Walter Hudson, and Marion Rarick, described as officials who "sounded the alarm" on fraud in social-services programs.
- Comer accused Walz and Ellison of being "asleep at the wheel or complicit" in massive fraud and said Congress will not stop until taxpayers get answers and accountability.
- A Walz spokesperson responded that the governor is "always happy" to work with Congress but called this committee’s events "circus hearings" and contrasted Walz’s work jailing fraudsters with the president "selling pardons" to let them out.
- Ellison’s office confirmed he was invited and signaled willingness to respond to Congress, while continuing to publicly rebut viral fraud claims.
- Identifies specific GOP legislators — Sens. Bill Lieske and Nathan Wesenberg, and Reps. Marj Fogelman, Drew Roach and Mike Wiener — who are formally calling on Gov. Tim Walz to resign over the Medicaid fraud allegations.
- Clarifies that the legislators are invoking Article 8, Section 6 of the Minnesota Constitution (malfeasance/nonfeasance recall language) but are not initiating a formal recall petition.
- Adds a detailed on‑record statement from Walz’s office outlining actions he says he has taken: requesting more anti‑fraud authority from the Legislature, launching investigations into specific facilities (one already closed), hiring an outside firm to audit high‑risk Medicaid programs, shutting down Housing Stabilization Services, and creating a statewide program‑integrity director.
- Reports that the GOP lawmakers frame their resignation call as about 'accountability' rather than partisan politics and say Medicaid fraud is one of the top concerns they hear from constituents.
- FBI Director Kash Patel released a public statement on X specifically about 'recent social media reports in Minnesota' on fraud, confirming the FBI is running an 'aggressive' and ongoing investigation to dismantle large‑scale schemes exploiting federal programs.
- Patel explicitly called existing Minnesota fraud convictions and indictments 'just the tip of the iceberg' and pledged that the FBI will 'continue to follow the money and protect children.'
- The article notes that Patel’s language mirrors earlier comments by Assistant U.S. Attorney Joe Thompson, who recently suggested that of roughly $18 billion spent on 14 'highly vulnerable' Medicaid programs since 2018, more than half might be fraudulent.
- The piece ties Patel’s statement to a viral YouTube video that alleges about $110 million in fraud at Minnesota child‑care providers (drawing in part on prior local investigations), and frames it as context rather than validated findings.
- FOX 9 positions Patel’s statement alongside its own prior reporting on fraud in Housing Stabilization Services, autism programs, and Integrated Community Supports, emphasizing that federal officials see those as part of a broader pattern.
- U.S. House Oversight and Government Reform Committee Chair Rep. James Comer has expanded his investigation into Minnesota Medicaid fraud, sending new letters to officials at the Minnesota Department of Human Services and Minnesota Department of Education requesting transcribed interviews.
- Comer also requested a briefing from U.S. Attorney General Pam Bondi’s office and is seeking evidence related to whistleblower claims that state officials may have tried to 'cover up' the full extent of the fraud.
- The article reiterates that Assistant U.S. Attorney Joe Thompson recently suggested fraud in 14 vulnerable Minnesota Medicaid programs could exceed $9 billion, while Walz administration officials (Deputy DHS Commissioner John Connelly and DHS Inspector General James Clark) say they have only seen evidence in the tens of millions and have not received documentation supporting the $9B figure.
- For the first time, Minnesota state agencies are formally coordinating by sharing data and tools to fight fraud, with monthly cross‑agency meetings led in part by BCA Superintendent Drew Evans.
- The state began auditing 14 designated high‑risk programs in October and is using those audits to identify early trends before they spread to other agencies.
- DHS Inspector General James Clark acknowledges past weaknesses in business vetting and says the state has significantly improved data analytics to allow faster suspension of payments to suspect providers.
- State employees are now required to report any suspicions of fraud, and the BCA has already received about 200 tips through a new anonymous online portal.
- A specific meeting is planned in the new year for state agencies to share fraud‑related information directly with federal prosecutors.
- The article highlights that 98 Minnesota mayors sent a letter linking fraud and state mismanagement to rising local property taxes, keeping political pressure on the issue.
- DHS Deputy Commissioner John Connelly said, “We’ve seen evidence of tens of millions of dollars to this point,” and not $9 billion.
- DHS Inspector General James Clark said he has asked the U.S. Attorney’s Office to share information and hopes to meet soon, adding he has not seen evidence of $9B in fraud.
- Gov. Walz said he takes responsibility for fixing oversight issues but called billion‑dollar estimates unfounded and politically amplified.
- Article reiterates Assistant U.S. Attorney Joe Thompson’s assertion that 'half or more' of $18B since 2018 could be fraudulent, framing the dispute.
- Minnesota DHS stated it does not have evidence indicating Medicaid fraud could reach $9 billion.
- Walz reiterated there is no substantiation for the federal prosecutors’ upper‑bound estimate.
- The state’s position distinguishes ongoing, targeted audits of high‑risk services from the unverified $9B figure.
- Gov. Tim Walz publicly characterized the $9 billion Medicaid fraud estimate as “sensationalized.”
- The governor’s comments add an official state response to the U.S. Attorney’s Office estimate that some portion of spending across 14 programs could be fraudulent.
- Places the federal estimate in context of ongoing state oversight actions and audits (underway since earlier announcements).
- Adds that the 14 Medicaid programs under investigation cost $18 billion since 2018 (CMS figure).
- First Assistant U.S. Attorney Joe Thompson says fraud could be 'half or more' of claims in the flagged programs and that he sees 'more red flags than legitimate providers.'
- Thompson characterizes it as 'industrial scale fraud' and says prosecutors expect additional charges in the coming weeks and months.
- Prosecutors emphasize no final figure yet but indicate the total could be $9 billion or more.