Report alleges Minnesota officials ignored fraud warnings

A congressional report released Monday accuses senior Minnesota officials of ignoring warnings about widespread fraud in federally funded social programs for years, allowing hundreds of millions of dollars to be stolen and placing billions more at risk. The 205-page report from the Republican-led House Committee on Oversight and Government Reform alleges that Governor Tim Walz and Attorney General Keith Ellison were aware of credible fraud concerns as early as 2019 but failed to use their authority to stop payments to suspected fraudulent providers.

The report estimates that roughly $300 million in federal child nutrition funds was stolen, primarily through the "Feeding Our Future" scandal, a pandemic-era scheme where a nonprofit allegedly used fake meal distribution sites to fraudulently obtain money intended to feed children. It also cites an estimate from a federal prosecutor suggesting as much as $9 billion in Medicaid-related funds may have been lost or placed at serious risk, a figure disputed by the Walz administration.

Investigators concluded that Minnesota state agencies had clear authority to suspend or stop payments to providers suspected of fraud but repeatedly chose...