Senator Chuck Grassley, Chairman of the Senate Judiciary Committee, delivered an opening statement at a subcommittee hearing addressing fraud schemes in Minnesota and their broader implications. Grassley thanked Senator Cruz for chairing the session and highlighted his long-standing commitment to exposing waste, fraud, and abuse in government programs.
Grassley referenced recent revelations of large-scale fraud in Minnesota that may have resulted in the loss of billions of taxpayer dollars. He stated, "What happened in Minnesota is as bad as it gets." The fraudulent activities targeted federal programs intended to assist children with autism, the elderly, and small businesses. Grassley condemned these actions: "It’s deplorable that fraudsters would target programs designed to help Americans struggling to take care of their children and families."
He also criticized alleged retaliation by the Walz administration against whistleblowers who attempted to expose the fraud. "If true, such retaliation can’t go unpunished," he said. Grassley emphasized the importance of protecting whistleblowers, calling them "the public’s greatest assets and allies" in uncovering large-scale fraud.
To address these issues, Grassley wrote to nearly ten agencies—including the Department of Justice (DOJ) and FBI—in January regarding the allegations. He stressed accountability and called for updates on government efforts to resolve the problem.
Recent responses include deployment of FBI personnel and resources to Minnesota announced by Director Patel in December 2025. Attorney General Bondi has assigned additional DOJ prosecutors to Minnesota. On January 8, the Trump administration created a new division within DOJ focused on national fraud enforcement led by a new Assistant Attorney General.
The Treasury Department has implemented additional reporting requirements for banks and financial institutions in Minnesota aimed at identifying suspicious overseas cash transfers. Secretary Bessent commented on these measures: “Minnesota is going to be the genesis for a national rollout.”
The Department of Education has started forming a dedicated fraud detection team that has already prevented $1 billion in student aid fraud since January 2025.
Grassley noted that similar allegations have surfaced beyond Minnesota, with fraudulent activity affecting federal programs nationwide including Medicaid and student aid. He called for bipartisan cooperation among federal and state agencies: "Federal and state agencies across the country must work together to get to the bottom of these sophisticated fraud schemes."
The Senate Judiciary Committee plays a significant role in legislative oversight affecting constitutional protections, public safety, civil rights, judicial matters, and federal law enforcement across the United States through its hearings such as this one (official website). The committee is led by a chairperson—currently Senator Grassley—and includes members from both major political parties (official website).
Grassley concluded his remarks by reiterating his expectation for ongoing updates from relevant agencies regarding anti-fraud efforts.
