House oversight committee expands probe into fraud in minnesota social services

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House oversight committee expands probe into fraud in minnesota social services

James Comer is Chairman of the House Oversight Committee. | https://oversight.house.gov/chairman-james-comer/

Chairman James Comer (R-Ky.) has expanded the House Committee on Oversight and Government Reform’s investigation into fraud within Minnesota’s social services programs. In a letter to Judy Randall, the Legislative Auditor for Minnesota, Comer requested documents and communications related to any reviews conducted by the Minnesota Department of Human Services concerning allegations of fraud. He also asked Shireen Gandhi, Temporary Commissioner of the department, to appear for a transcribed interview scheduled for January 30, 2026.

The expansion follows an investigation launched in December 2025 after federal authorities uncovered significant money laundering and fraud in Minnesota’s social service programs. According to findings from the U.S. Attorney for the District of Minnesota, approximately $9 billion in taxpayer funds meant for child nutrition, autism support, housing assistance, and Medicaid were misappropriated.

Comer previously requested that Governor Tim Walz and Attorney General Keith Ellison provide documentation and records related to these incidents and testify at a public hearing set for February 10, 2026. The committee has also sought Suspicious Activity Reports from the U.S. Department of the Treasury as part of its ongoing inquiry into alleged fraudulent activities.

A report released on January 6, 2026 by the Minnesota Office of the Legislative Auditor indicated that the Behavioral Health Administration within the Department of Human Services failed to comply with most requirements regarding grant fund management. The report cited an instance where nearly $680,000 was paid to a grantee for one month’s work without documentation or proof that any work was completed; shortly afterward, the grant manager responsible left state employment to join the recipient organization.

On January 7, 2026, a congressional hearing titled “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I” featured testimony from state lawmakers who raised concerns about widespread fraud. During this hearing, both members of Congress and testifying legislators noted that many schemes involved individuals within Minnesota’s Somali community and suggested some funds may have been diverted abroad. Lawmakers accused Governor Walz and Attorney General Ellison of failing to address these issues adequately and retaliating against whistleblowers.

“Criminals in Minnesota have stolen an estimated $9 billion in taxpayer funds intended to feed children, support autistic children, house low-income and disabled Americans, and provide healthcare to vulnerable Medicaid recipients,” said Chairman Comer.

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