James Comer is Chairman of the House Oversight Committee. | https://oversight.house.gov/chairman-james-comer/
House Committee on Oversight and Government Reform Chairman James Comer addressed concerns about oversight failures in Minnesota during a hearing on federal fund misuse. Comer stated that Governor Tim Walz and Attorney General Keith Ellison were responsible for what he described as one of the most significant breakdowns of oversight the committee has investigated.
Comer said, “Instead of protecting the whistleblowers, the Walz administration protected the system that enabled fraud.” He pointed out that billions of taxpayer dollars intended for social services were stolen while warnings from state employees and auditors accumulated without action from state leadership.
According to Comer, federal prosecutors estimate up to $9 billion may have been stolen from fourteen Medicaid programs administered by Minnesota since 2018. The total cost to taxpayers for these programs exceeded $18 billion, with investigators suggesting half or more was lost due to fraud.
Comer submitted an interim staff report titled “The Cost of Doing Nothing: How Tim Walz and Keith Ellison Fueled Minnesota’s Fraud Explosion.” The report is based on interviews with nine Minnesota state employees and documents collected so far. It includes testimony indicating senior officials in state government, including Walz and Ellison, knew about widespread fraud for years but did not take sufficient action to prevent it.
In his remarks, Comer stated: “For years, Governor Tim Walz and Attorney General Keith Ellison presided over one of the most extensive breakdowns of oversight this Committee has ever examined.” He added that although Governor Walz claimed his administration addressed fraud early, evidence showed payments continued despite warnings.
The hearing also referenced specific cases such as Feeding our Future, where nearly $300 million was stolen from programs meant to feed children during the pandemic. Comer noted fraudulent activities included fake invoices and misuse of funds for luxury items. Dozens have been convicted in connection with these schemes.
Other issues highlighted included repeated violations within the Child Care Assistance Program and a dramatic increase in costs for Housing Stabilization Services—from an expected $2.6 million annually to over $100 million per year—before federal agents intervened.
Comer criticized both Democratic leaders’ response times during committee interviews compared to Republican staff efforts. He emphasized that accountability should come from state leadership rather than relying solely on federal intervention after significant losses occur.
He concluded: “While whistleblowers were silenced, fraudsters got rich. Accountability shouldn’t begin only after federal prosecutors step in and clean up the damage.”
The committee expects further explanations from Minnesota’s leaders regarding their handling of these matters.
