Vice-President JD Vance has asked the Department of Justice to open a criminal investigation into Minnesota Governor Tim Walz and Attorney General Keith Ellison, acting on a House Republican report alleging they failed to act on widespread taxpayer fraud in state social programmes, a referral Ellison immediately denounced as a “political stunt from an administration that uses the machinery of government to target its perceived opponents.”
What the House oversight committee’s 205-page report alleges against Walz and Ellison
The Republican-controlled House oversight committee released a 205-page report on Monday alleging that Walz and Ellison were aware of “widespread taxpayer fraud” in social service programmes and “repeatedly failed to act.” The report further claimed that state leaders retaliated against employees who raised fraud concerns, “allowing criminal schemes to flourish and diverting critical resources from vulnerable Americans.”
Announcing the referral on X, Vance said he had directed the justice department’s fraud division to open a criminal investigation.
“Minnesota state officials are not above the law, and if they facilitated fraud, lied under oath about what they knew, or harassed and intimated whistleblowers, they must face justice,” he wrote.
James Comer, a Republican from Kentucky and chair of the House oversight committee, claimed that Walz and Ellison were “responsible for one of the most stunning oversight failures this committee has ever examined.” His press release added that “testimony and documents show that concerns about litigation and accusations of discrimination – not legal barriers or directives from law enforcement – were cited as reasons for continuing payments to suspected fraudsters.”
The report claims Minnesota officials were aware of fraud in social service programmes as early as 2019. State agencies held the authority to suspend or halt payments to providers they suspected of fraud but “failed to act,” the report alleges, allowing hundreds of millions of dollars in federal funds to flow to fraudulent services.
Ellison says the referral is a political stunt from an administration targeting its opponents
Ellison, who has filed dozens of lawsuits against the Trump administration, rejected the report’s findings as “unfounded” and said Vance’s referral was a “political stunt from an administration that uses the machinery of government to target its perceived opponents while extending leniency to those aligned with its interests.” The report contained no evidence that he or his office ignored or failed to act on fraud claims, he said.
“The people of Minnesota know the difference between accountability and political theater. They have seen the consequences of these policies first-hand,” Ellison said. “A partisan report and a social media post from the vice-president do not change the record – and they do not change our commitment to uphold the law, protect the public, and pursue justice without fear or favor.”
Walz’s office says the oversight committee is ‘nothing more than a joke’
Walz’s office pointed to his March congressional testimony, in which he described the federal government’s campaign against Minnesota as “political retribution” and set out the actions his administration had taken to address fraud.
Teddy Tschann, a spokesperson for Walz, said the committee had “proven time and time again to be nothing more than a joke.”
“They continue to rehash Covid-era fraud to distract from endless wars, gas prices, ICE, and the president’s insider trading,” Tschann said. “Governor Walz is glad to see fraudsters are going to prison. If the committee is concerned about corruption, they should investigate why President Trump continues to let fraudsters out of prison.”
The $250m Feeding Our Future fraud scheme that sits at the centre of the dispute
The largest scheme at the heart of the allegations was a $250 million fraud involving a Covid-era non-profit called Feeding Our Future, which submitted false claims that the organisation was feeding children. The money was instead used to fund “lavish lifestyles,” the federal government has said. Aimee Bock, the orchestrator of the scheme, was recently sentenced to nearly 42 years in prison. Dozens of others, largely Somali, have been prosecuted as part of the case.
Other programmes, including childcare providers and autism therapy providers billing Medicaid, have faced charges as fraud investigations continue. The scale of the fraud led Walz to abandon his bid for a third term as governor, saying he needed to focus on leading the state rather than running a campaign.
Why the Trump administration made Minnesota fraud a political priority
Fraud in Minnesota became a fixation for the Trump administration late last year, after right-wing influencers amplified long-running fraud prosecutions and produced videos alleging new schemes. Fraud allegations, particularly those directed at Somali communities, served as part of the justification for deploying thousands of federal immigration agents into the state. Two US citizens were killed in the streets by agents earlier this year.
The justice department is also reportedly investigating Walz, Ellison and local officials for allegedly obstructing immigration enforcement. Federal authorities have attempted to freeze funding for programmes including childcare support and food assistance, citing fraud concerns.
House Democrats say Republicans are relitigating fraud to go after Minnesota politically
House Democrats on the oversight committee released a counter-report arguing that Republicans were “once again relitigating a fraud scheme that is being aggressively investigated and prosecuted by federal and state authorities.” They said the Republican effort amounted to using fraud as a political pretext to target Minnesota and its leadership.
House Republicans had brought Walz and Ellison in for questioning earlier in the year and released a preliminary version of the full report in March.
