Subject: Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I
Date: January 7, 2026
Time: 10:00 am
Place: HVC-210
Full Committee on Oversight and Government Reform
Witnesses and testimonies:
Kristin Robbins, Minnesota House of Representatives
Walter Hudson, Minnesota House of Representatives
Marion Rarick, Minnesota House of Representatives
Brendan Ballou, Former Federal Prosecutor
Committee on Oversight and Government Reform
Chairman Comer Opens Hearing on Massive Fraud in Minnesota’s Social Programs
“Governor Tim Walz, Attorney General Keith Ellison, and Minnesota’s Democratic leadership have either been asleep at the wheel or complicit in these crimes.”
WASHINGTON—House Committee on Oversight and Government Reform Chairman James Comer (R-Ky.) delivered opening remarks at today’s hearing on “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I.” In his opening statement, Chairman Comer emphasized that criminals in Minnesota have stolen an estimated $9 billion dollars—taxpayer funds intended to feed children, provide services to autistic children, house low-income and disabled Americans, and provide healthcare to vulnerable Medicaid recipients. He pointed out how Americans’ tax dollars were stolen by fraudsters to buy luxury homes, flashy cars, extravagant vacations, and, reportedly, even funneled to terrorist networks overseas. While Minnesota Governor Tim Walz, Attorney General Keith Ellison, and state Democrats failed to act despite repeated warnings, Chairman Comer stressed that the American people demand accountability—including jail time for those responsible—and insisted that Congress must evaluate legislative solutions to ensure this never happens again.
Below are Chairman Comer’s remarks as prepared for delivery.
Today, the House Oversight Committee is holding its first hearing on the massive fraud in Minnesota’s social services programs.
Minnesota’s social services – which are funded by YOU, the American taxpayer – are being ripped off.
The most vulnerable are suffering as a result.
Federal prosecutors estimate these criminals have stolen at least $9 billion.
The fraudsters – many of whom are from Minnesota’s Somali community – have stolen from programs meant to feed needy kids, provide services to autistic children, house low-income and disabled Americans, and provide healthcare to vulnerable Medicaid recipients.
Fraudsters like these take millions to enrich themselves while providing nothing, overstating, or outright faking the services.
How many children have gone hungry because fraudsters stole money that was intended to provide them with food?
How many autistic children were denied services because fraudsters instead sent this money overseas?
How many low-income seniors, people with disabilities, or those with mental illnesses were denied access to housing because fraudsters drained resources and pocketed the money for themselves?
The breadth and depth of this fraud is breathtaking. And I fear it is just the tip of the iceberg.
The U.S. Department of Justice is already investigating another Minnesota service program after a disabled man battling drug addiction – under the care of a fraudulent full-time provider – died because of neglect.
Governor Tim Walz, Attorney General Keith Ellison, and Minnesota’s Democratic leadership have either been asleep at the wheel or complicit in these crimes.
How could they allow this massive fraud to go on for years?
This is why we are here. We must expose this theft of taxpayer dollars and hold everybody accountable who let it happen.
Today, we’re joined by witnesses from the Minnesota State House of Representatives who have been fighting this fight for years.
These legislators are on the front lines, uncovering fraud in Minnesota’s social services programs day in and day out and trying to get their state agencies to fix it.
Thank you for all that you are doing to uncover the truth.
This isn’t just Minnesota’s problem – it’s a problem for taxpayers across the United States. About 35 percent of Minnesota’s budget comes from federal grants.
Hardworking Americans pay those taxes, and that money is being funneled to fraudsters – funding luxury homes, fancy cars, and vacations abroad.
Some of it is even allegedly going overseas to support terrorists.
And yet, Governor Walz, Attorney General Ellison, and Minnesota Democrats failed to act despite warnings.
They failed Minnesotans and all Americans, handing millions of taxpayers’ money to fraudsters.
They failed children and others in Minnesota.
They failed their own state employees, some of whom have come forward as whistleblowers.
These whistleblowers have told us that the Walz Administration retaliated against employees who warned and alerted the administration to the fraud occurring within these social services programs.
Again, Governor Walz accused employees who were simply doing their jobs of racism, Islamophobia, and threatened surveillance to silence them.
President Trump and his administration are taking a whole-of-government approach and prosecuting these fraudsters.
To date, the U.S. Department of Justice has charged 98 defendants in Minnesota fraud-related cases – 85 of whom are of Somali descent. Sixty-four have already been convicted.
The U.S. Department of Homeland Security is on the ground conducting investigations of suspected fraud sites in Minnesota.
The U.S. Department of Health and Human Services has frozen childcare payments and started requiring documentation to prove entities are indeed providing childcare.
Other federal agencies are halting grant programs, investigating public housing fraud, and strengthening program eligibility requirements.
The American people demand jail time for those who stole their hard-earned money and accountability for officials who sat by as resources were drained.
Congress must ensure there is change and accountability so this doesn’t happen again.
I look forward to hearing from our witnesses today. Americans thank you for your dedication to exposing this critical issue.
