Building on recent federal crackdowns like the childcare funding freeze, the U.S. House Oversight Committee has opened a formal investigation into alleged multibillion-dollar fraud in Minnesota's social programs. Chairman James Comer accuses state leaders Tim Walz and Keith Ellison of complicity, with hearings starting January 7, 2026.
House Oversight and Accountability Committee Chairman James Comer (R-KY) announced the probe on December 19, 2024, targeting what he calls a "heist" of federal funds during the Walz and Ellison administrations. The first hearing on January 7, 2026, will feature testimony from Republican state lawmakers Kristin Robbins, Walter Hudson, and Marion Rarick, who say their earlier warnings were ignored.
Comer invited Governor Walz and AG Ellison to testify on February 10, 2026, alleging they were "asleep at the wheel or complicit" as up to $9 billion vanished from programs since 2018. The committee requested Suspicious Activity Reports from the Treasury and plans interviews with state officials.
The probe aligns with other Trump administration actions, including Small Business Administration Administrator Kelly Loeffler's suspension of 6,900 Minnesota borrowers tied to $400 million in suspected PPP and EIDL fraud. Loeffler noted referrals for prosecution and future nationwide accountability. It also coincides with the Department of Health and Human Services' freeze on childcare payments amid daycare fraud allegations—sparked by a viral exposé—as well as probes into schemes like fraudulent autism diagnoses and the Feeding Our Future scandal, predominantly involving Somali-descent individuals.
U.S. AG Pam Bondi signaled more prosecutions. Rep. Tom Emmer (R-MN) accused state leaders of stifling investigations for political gain, while Walz called the efforts politically motivated to cut funding. Comer emphasized congressional safeguards against future fraud.
