House Oversight Launches Investigation Into Multibillion-Dollar Minnesota Fraud

House Oversight and Accountability Committee Chairman James Comer (R-KY) has launched a sweeping investigation into alleged systemic fraud and misuse of federal funds in Minnesota’s social services programs. The inquiry is scheduled to begin on January 7, 2026. This initial session will feature testimony from Minnesota state lawmakers, including Republican Reps. Kristin Robbins, Walter Hudson, and Marion Rarick, who claim that their prior warnings about fiscal misconduct were ignored by state leadership.

The investigation targets a “heist” of taxpayer dollars that has occurred during the administrations of Democrat Governor Tim Walz and Attorney General Keith Ellison. Chairman Comer has formally invited both Walz and Ellison to testify on February 10, 2026, accusing them of being “asleep at the wheel or complicit” in the disappearance of billions of dollars. To support the probe, the Committee has requested Suspicious Activity Reports (SARs) from the U.S. Department of the Treasury and scheduled transcribed interviews with various state officials.

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This congressional action coincides with an aggressive federal crackdown led by the Trump administration. Small Business Administration Administrator Kelly Loeffler announced the suspension of 6,900 Minnesota borrowers linked to approximately $400 million in potentially fraudulent pandemic-era loans. Furthermore, the Department of Health and Human Services has frozen all childcare payments to the state following allegations of widespread fraud at daycare centers. Federal investigators are also probing schemes involving fraudulent autism diagnoses and the “Feeding Our Future” program, which allegedly diverted funds intended for hungry children.

Critics, including House Majority Whip Tom Emmer (R-MN), allege that state leadership intentionally stifled investigations to maintain political support within specific immigrant communities. Reports suggest that Minnesota’s social programs may have lost as much as $9 billion to fraud since 2018.

While Governor Walz has defended his record and characterized the investigations as politically motivated attempts to justify funding cuts, Chairman Comer maintains that Congress has a duty to ensure accountability. The Committee’s ultimate goal is to expose the failures that allowed these “criminal actors” to exploit taxpayer-funded programs and to implement rigorous safeguards against future theft.