U.S. House Oversight Committee calls on Walz to testify in Minnesota fraud probe
House Oversight Chair Rep. James Comer has summoned Gov. Tim Walz to testify Feb. 10, 2026, as part of a Republican‑led probe into alleged widespread fraud across roughly 14 Minnesota Medicaid and social‑services programs that federal prosecutors say involved about $18 billion in payments since 2018 and could include billions in improper claims. Walz and state officials dispute the $9 billion estimate—saying audits so far show tens of millions and calling the figure sensationalized—while the FBI, U.S. attorneys and state agencies coordinate investigations and warn additional charges may be forthcoming.
📌 Key Facts
- Federal prosecutors, led by First Assistant U.S. Attorney Joe Thompson, say 14 designated "highly vulnerable" Minnesota Medicaid/human-services programs cost about $18 billion since 2018 (CMS figure) and have suggested fraud could be "half or more" of claims in those programs — potentially $9 billion or more — calling it "industrial scale fraud" and saying additional charges are expected, while emphasizing no final figure has been established.
- Minnesota officials — Gov. Tim Walz, DHS Deputy Commissioner John Connelly and DHS Inspector General James Clark — have said they do not have evidence that fraud reaches $9 billion, reporting only tens of millions in identified issues to date, calling the federal estimate unsubstantiated or "sensationalized," and requesting documentation from federal prosecutors.
- House Oversight Committee Chair Rep. James Comer has expanded a congressional probe: sending letters to Minnesota agencies (including the Department of Human Services and Department of Education) seeking transcribed interviews and evidence, requesting federal briefings, and accusing state leadership of being "asleep at the wheel or complicit."
- The House Oversight Committee scheduled hearings on the matter: "Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part 1" for Jan. 7, 2026 (featuring Minnesota lawmakers who sounded the alarm) and a Feb. 10, 2026 hearing for which Gov. Walz and Attorney General Keith Ellison have been formally invited; the committee has called on Walz to testify.
- Walz’s office says the governor is willing to work with Congress but criticized the hearings as a "circus," defended actions his administration has taken (requesting more anti‑fraud authority from the Legislature, hiring an outside auditor, shutting down Housing Stabilization Services, opening investigations into specific facilities and creating a statewide program‑integrity director) and said he accepts responsibility for fixing oversight weaknesses.
- Minnesota has begun targeted audits of the 14 high‑risk programs (started in October), improved interagency coordination and data analytics, instituted monthly cross‑agency meetings (with BCA participation), required state employees to report suspected fraud, launched an anonymous tip portal that has generated about 200 tips, and planned a meeting to share fraud‑related information with federal prosecutors.
- FBI Director Kash Patel publicly said the FBI is conducting an "aggressive" investigation into recent Minnesota fraud reports, called existing convictions and indictments "just the tip of the iceberg," and tied federal scrutiny to viral videos alleging large‑scale fraud (including claims about roughly $110 million at some child‑care providers).
- Republican state legislators and a coalition of 98 Minnesota mayors have increased political pressure — including formal calls for Gov. Walz’s resignation citing accountability provisions of the state constitution — arguing the fraud and state mismanagement are harming taxpayers and contributing to local property‑tax concerns.
📊 Relevant Data
Federal prosecutors have convicted 59 individuals, predominantly from the Somali diaspora, in fraud schemes targeting Minnesota's social services programs between 2020 and 2025, with dozens more charged.
How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch — The New York Times
Fraud in Minnesota's programs exceeded $1 billion across three major investigated plots from 2020 to 2025, surpassing the state's annual Department of Corrections budget.
How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch — The New York Times
Pandemic-era policy changes, including COVID-19 waivers that relaxed oversight and verification requirements for child nutrition and other aid programs, enabled widespread fraud in Minnesota's welfare systems starting in 2020.
How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch — The New York Times
Minnesota officials overlooked red flags in the fraud schemes due to concerns about appearing racist, contributing to the persistence of the billion-dollar fraud primarily involving Somali immigrants.
How misreading Somali poverty led Minnesota into its largest welfare scandal — Fox News
The fraud in Minnesota is part of a national pattern where Americans stole tens of billions through pandemic aid programs like unemployment benefits and business loans from 2020 onward.
How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch — The New York Times
📰 Sources (11)
U.S. House Oversight Committee calls on Walz to testify in Minnesota fraud probe
New information:
- 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.
Minnesota fraud: US House committee to hold hearings, Walz invited to testify
New information:
- 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.
Minnesota GOP calls for Gov. Walz resignation over Medicaid fraud
New information:
- 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 responds to MN fraud viral video: 'Tip of the iceberg'
New information:
- 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.
House committee expands probe into Minnesota fraud
New information:
- 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.
Minnesota fraud: State agencies coordinate efforts after $9B claims
New information:
- 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.
Gov. Walz: ‘No evidence’ of fraud in billions despite allegations
New information:
- 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.
Gov. Tim Walz, DHS say they don’t have evidence to suggest fraud could reach $9 billion
New information:
- 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. Walz calls $9 billion fraud estimate in Minnesota-run Medicaid services ‘sensationalized’
New information:
- 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).
Federal prosecutors: Minnesota fraud crisis could top $9B
New information:
- 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.