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Press Release Published: Jun 8, 2026

Oversight Committee Releases Bombshell Report Exposing Rampant Fraud Plaguing Minnesota’s Taxpayer-Funded Social Programs

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Chairman Comer urges President Trump’s Anti-Fraud Task Force to conduct a thorough review of Minnesota’s social services program

WASHINGTON—The House Committee on Oversight and Government Reform released a staff report today titled, “The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota’s Fraud Explosion.” The report exposes how senior Minnesota state officials, including Governor Walz and Attorney General Ellison, were aware of widespread taxpayer fraud in federally funded social programs for years, possessed the authority to stop payments and ban fraudulent providers from participating in these programs, but repeatedly failed to act. As a result, billions of American taxpayer dollars were potentially paid to fraudulent actors. The report includes testimony and documents obtained by the Committee showing that Minnesota state leaders consistently failed to address known fraud concerns and retaliated against state employees who sought to protect taxpayer funds, allowing criminal schemes to flourish and diverting critical resources from vulnerable Americans.

“Minnesota Governor Tim Walz and Attorney General Keith Ellison are responsible for one of the most stunning oversight failures this Committee has ever examined. Today’s report is the culmination of months of investigative work and reveals hard evidence showing how the Walz Administration failed to stop widespread fraud, allowing criminals to enrich themselves at the expense of American taxpayers. Billions of dollars were stolen because Minnesota state leaders turned a blind eye to rampant fraud and retaliated against state employees who dared to raise concerns. It is now clear the Walz Administration chose to protect the system rather than protect the taxpayer. Americans are fed up with fraud and expect action from the government entrusted with their hard-earned money. The House Oversight Committee has now passed over a dozen bills aimed at protecting taxpayer funds and strengthening oversight of federal programs ripe for fraud. This Committee will continue to work alongside President Trump’s anti-fraud task force to have the backs of hardworking Americans,” said House Committee on Oversight and Government Chairman James Comer (R-Ky.).

Below are some key findings from the report:

  • Governor Walz and Attorney General Ellison were aware of credible and systemic fraud in Minnesota’s social services programs as early as 2019 but failed to take action to protect taxpayer funds.
  • Minnesota state agencies had clear authority to suspend or stop payments to providers suspected of fraud without requiring independent direction from courts, law enforcement agencies, or the federal government but failed to act. 
  • Minnesota officials continued directing taxpayer dollars to Feeding our Future and other high-risk entities despite identifying serious program deficiencies, enabling hundreds of millions of dollars in federal funds to flow to fraudsters.
  • Testimony and documents show that concerns about litigation and accusations of discrimination—not legal barriers or directives from law enforcement—were cited as reasons for continuing payments to suspected fraudsters. 
  • The Walz Administration retaliated against state employees who raised concerns about fraud, while senior state officials prioritized managing political and media fallout over addressing known fraud vulnerabilities.
  • Failures to prevent fraud resulted in an estimated $300 million in federal child nutrition funds being lost and potentially $9 billion in Medicaid-related funds to be lost or placed at serious risk.

Based on the Committee’s findings, Chairman Comer also sent a letter to Vice President JD Vance urging the White House Task Force to Eliminate Fraud to conduct a thorough review of Minnesota’s social services programs. 

Read the letter to Vice President Vance here. 

Read the full report here.

This week, the House of Representatives is slated to consider ten Oversight Committee bills aimed at protecting taxpayer funds and combating rampant fraud and improper payments in federal programs. The Government Accountability Office (GAO) estimates that between $233 billion and $521 billion is lost annually due to fraud. 

The Committee is also releasing transcribed interview transcripts conducted as part of its investigation into fraud in Minnesota’s social services programs:

  • Emily Honer, Director of Nutrition Program Services for MDE (2023 to Present), previously Supervisor of Business Operations and Support Services for MDE (2019-2023)
  • Daron Korte, Assistant Commissioner for MDE (2014 to Present)
  • Mary Cathryn Ricker, Former MDE Commissioner (2019 to 2021)
  • Tony Lourey, Former DHS Commissioner (January 2019 to July 2019)
  • Dave Greeman, Former DHS Chief Financial Officer (2021 to 2025)
  • Eric Grumdahl, Former DHS Assistant Commissioner of Homelessness & Housing Support (2022 to 2025)
  • Shireen Gandhi, then-Temporary DHS Commissioner (February 2025 to February 2026), previously Deputy Commissioner for Agency Effectiveness (2022-2025), Assistant Commissioner for Agency Effectiveness (2021-2022), and Chief Compliance Officer for DHS (2017-2021) 
  • Jodi Harpstead, Former DHS Commissioner (2019 to 2025)
  • Chris Schmitter, Former Chief of Staff for Governor Tim Walz (2019 to 2025)