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Walz, Ellison grilled in U.S. House fraud hearing

Minnesota Gov. Tim Walz and Attorney General Keith Ellison testified before the U.S. House Oversight Committee, where they were questioned about alleged welfare fraud in the state. They told the panel a federal immigration crackdown — including Operation Metro Surge — has diverted resources, politicized oversight and hindered fraud investigations, with Walz calling Minnesota a “scapegoat,” disputing the Justice Department’s $9 billion fraud figure as far exceeding what has been charged or documented, and warning that threatened funding cuts are undercutting program‑integrity work.

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📌 Key Facts

  • Gov. Tim Walz and Rep. Keith Ellison told a U.S. House panel that a federal immigration crackdown in Minnesota has hindered the state's fraud investigations by diverting federal resources and politicizing oversight.
  • They explicitly linked their testimony to the fallout from Operation Metro Surge, saying the federal surge and threatened funding cuts are undercutting, not aiding, Minnesota's program‑integrity work.
  • Walz said Minnesota has been made a "scapegoat" in the federal response.
  • Walz argued the Department of Justice's cited $9 billion fraud figure far exceeds what has actually been charged or documented in court so far.
  • Both Walz and Ellison were grilled during the House fraud hearing on these issues.

📊 Relevant Data

Approximately 39% of working-age Somalis in Minnesota do not have a high school diploma, compared to the state average of around 7%.

Minneapolis, MN's Somali community economic reality — Facebook

The unemployment rate among Somalis in Minnesota is about 40%, compared to the state average of around 3%.

Minnesota's Somali population, by the numbers: Poverty: 58% Food stamps: 42% Unemployed: 40% No high school education: 41% At least $1B in ... — Facebook

Somali Minnesotans contribute approximately $8 billion to the Minnesota economy and have a higher labor participation rate than the general population.

[PDF] Contrary to Trump's claims, Somalis add $8B to MN economy — Congress.gov

Somali immigrants began resettling in Minnesota in the 1990s primarily through federal refugee resettlement programs, with Minnesota's strong network of resettlement agencies and social connections facilitating the growth of the community.

How did MN get the nation's largest Somali population? — Star Tribune

Minnesota's Medicaid improper payment rate is about 2.1%, which is lower than the national average of 6.1%.

Federal data shows Minnesota's Medicaid program has improper ... — CBS News

Operation Metro Surge involved up to 3,000 federal immigration enforcement agents in Minnesota, aimed at combating fraud, but was criticized for causing economic harm estimated at $203 million in one month and diverting resources from state investigations.

Operation Metro Surge results in 203 million impact - Minneapolis, MN — Minneapolis MN Gov

Among Somali immigrants in Minnesota, low education and lack of English-language ability are strong predictors of poverty.

Somali Immigrants in Minnesota - Center for Immigration Studies — Center for Immigration Studies

📰 Source Timeline (2)

Follow how coverage of this story developed over time

March 04, 2026
10:45 PM
Immigration crackdown hurt MN fraud fight, Walz, Ellison tell House panel
Twincities by Alex Derosier
New information:
  • This particular piece reinforces that both Walz and Ellison told the House panel the immigration crackdown in Minnesota has actually hindered the state’s fraud investigations by diverting federal resources and politicizing oversight.
  • It underscores that Walz framed Minnesota as a 'scapegoat' and argued DOJ’s touted $9B fraud figure far exceeds what’s actually been charged or documented in court so far.
  • It links their testimony explicitly to the fallout from Operation Metro Surge, making the point that the federal surge and threatened funding cuts are undercutting, not aiding, program‑integrity work in Minnesota.