House Oversight Committee Chairman James Comer (R-Ky.) opened a hearing on alleged widespread fraud and misuse of federal funds in Minnesota’s social service programs. The hearing, titled “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I,” focused on what Comer described as a massive theft of taxpayer money intended for vulnerable populations.
In his remarks, Comer stated that criminals in Minnesota have stolen an estimated $9 billion from programs designed to provide food for children, services for autistic children, housing for low-income and disabled Americans, and healthcare for Medicaid recipients. He said these funds were used to purchase luxury items and vacations, with some allegedly being funneled to terrorist organizations overseas.
Comer criticized state leadership, saying: “Governor Tim Walz, Attorney General Keith Ellison, and Minnesota’s Democratic leadership have either been asleep at the wheel or complicit in these crimes.”
He highlighted the impact on affected groups by asking: “How many children have gone hungry because fraudsters stole money that was intended to provide them with food? How many autistic children were denied services because fraudsters instead sent this money overseas? How many low-income seniors, people with disabilities, or those with mental illnesses were denied access to housing because fraudsters drained resources and pocketed the money for themselves?”
The chairman noted ongoing investigations by federal agencies. According to Comer, the U.S. Department of Justice has charged 98 defendants in connection with Minnesota fraud cases—85 of whom are Somali—and 64 have already been convicted. The Department of Homeland Security is conducting investigations at suspected fraud sites in the state. In addition, the Department of Health and Human Services has frozen childcare payments pending documentation proving legitimate care is provided. Other federal agencies are reviewing grant programs and public housing eligibility.
Comer accused state officials of ignoring warnings about fraudulent activities within social service programs: “They failed Minnesotans and all Americans, handing millions of taxpayers’ money to fraudsters.” He also referenced whistleblowers who allegedly faced retaliation after raising concerns about possible fraud.
“Again, Governor Walz accused employees who were simply doing their jobs of racism, Islamophobia, and threatened surveillance to silence them,” he said.
Comer stated that Congress must consider legislative solutions to prevent similar incidents in the future. He concluded by thanking witnesses from the Minnesota State House who have worked to uncover fraud within state programs: “These legislators are on the front lines... uncovering fraud in Minnesota’s social services programs day in and day out.”
The hearing comes as approximately 35 percent of Minnesota’s budget comes from federal grants. Comer emphasized that protecting these funds is not only a concern for Minnesotans but also impacts taxpayers nationwide.
