$9B Vanishes—Minnesota Dems Blamed

Files labeled Investigations and Fraud in folder.

Minnesota Democrats stand accused of allowing $9 billion in federal taxpayer dollars to vanish into fraud schemes, leaving vulnerable Americans without essential services while luxury purchases and possible terror funding flourished.

Story Highlights

House Oversight Chairman James Comer launches hearing exposing up to $9 billion stolen from child nutrition, Medicaid, housing, and autism programs in Minnesota.
Governor Tim Walz and AG Keith Ellison face charges of negligence or complicity, ignoring whistleblower warnings and retaliating against state employees.
DOJ under President Trump charged 98 defendants, mostly of Somali descent, securing 64 convictions amid state inaction.
Republican state lawmakers testify on ignored alarms, highlighting federal intervention as a win for taxpayer accountability.
Upcoming testimony from Walz and Ellison signals deeper probe into Democratic failures harming families and fiscal responsibility.

Comer Opens Fire on Minnesota Fraud

House Oversight Committee Chairman James Comer (R-Ky.) convened the January 7, 2026, hearing titled “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I” in the U.S. Capitol Visitor Center. He directly accused Governor Tim Walz and Attorney General Keith Ellison of being “asleep at the wheel or complicit” in schemes defrauding federal programs. These initiatives, comprising 35% of Minnesota’s budget, serve child nutrition, autism care, low-income housing, and Medicaid for disabled individuals. Comer demanded accountability, including potential jail time and legislative reforms to protect taxpayers from such government overreach.

DOJ Prosecutions Expose Scale of Theft

U.S. Attorneys in Minnesota uncovered fraud through extensive investigations, charging 98 defendants—85 of Somali descent—with 64 convictions secured. Funds diverted from programs like Feeding Our Future, which stole over $240 million in the Federal Child Nutrition Program during pandemic expansions. Broader probes revealed money laundering, luxury purchases, and possible links to overseas terrorist networks. Tragically, one disabled man died from neglect by fraudulent providers, underscoring harm to those relying on these services amid Democratic state leadership’s alleged inaction.

Whistleblowers Silenced by Walz Administration

Republican Minnesota state representatives Kristin Robbins, Walter Hudson, and Marion Rarick testified at the hearing, detailing early fraud alarms raised to state agencies. Walz’s administration reportedly ignored these warnings, labeled whistleblowers as racist or Islamophobic, and retaliated through surveillance and threats against state employees. Comer requested documents from Walz and Ellison, including Treasury suspicious activity reports and transcribed interviews with officials. This pattern erodes trust in government stewardship of federal dollars meant for American families.

The December 2025 probe launch by House Oversight Republicans set the stage for federal override of state failures. Witnesses emphasized “breathtaking” negligence, positioning the issue as a national taxpayer crisis beyond Minneapolis’s diverse communities.

Impacts Demand Federal Reforms

Vulnerable Minnesotans—hungry children, autistic youth, low-income and disabled housing seekers, Medicaid users—lost critical aid to fraudsters. Nationwide taxpayers footed the bill for an estimated $9 billion loss, diverting resources from legitimate needs. Politically, the probe boosts Trump administration DOJ successes while exposing Democratic vulnerabilities, including Walz as a past VP contender. Short-term, expect subpoenas and more charges; long-term, stricter audits on social services and nonprofits to prevent repeats.

February 10, 2026, invites Walz and Ellison to testify in Part II, promising further revelations on state complicity claims. This congressional action upholds conservative principles of limited government, individual accountability, and protecting American wallets from wasteful mismanagement.