Gov. Tim Walz has come under fire after nearly 500 employees of the Minnesota Department of Human Services accused his administration of failing to act on early warnings of widespread fraud and retaliating against whistleblowers. (Al Drago/Bloomberg via Getty Images)
The Justice Department said approximately $300 million in taxpayer funds intended to feed low-income children during the pandemic was diverted through a nonprofit called Feeding Our Future in a sprawling case that has now grown to at least 78 defendants. The U.S. Attorney's Office in Minnesota said it was the largest pandemic-relief fraud scheme charged to date in the U.S.
Some of the organizations tied to the fraud were run by Somali Minnesotans, federal prosecutors say.
Minnesota education officials say Feeding Our Future and its partner organizations submitted more than $500 million in claims — and Comer has alleged the total losses may have approached $1 billion.
Walz has come under fire after nearly 500 employees of the Minnesota Department of Human Services accused his administration of failing to act on early warnings of widespread fraud and retaliating against internal whistleblowers.
As chairman of the GOP-led committee, Comer is empowered to subpoena records and witnesses and to refer potential wrongdoing to the Department of Justice.
A report by the Manhattan Institute’s City Journal, citing unnamed federal counterterrorism sources, alleged that some of the stolen funds were transferred overseas to Somalia and may have ended up with al-Shabaab — though none of the federal indictments include terrorism charges and the Justice Department has not confirmed any such link.
Employees of the Minnesota Department of Human Services wrote on X on Saturday that Walz is "100% responsible for massive fraud in Minnesota."
Rep. James Comer, R-Ky., chairman of the House Oversight and Accountability Committee, during a hearing in Washington, D.C., on Wednesday, March 20, 2024. (Al Drago/Bloomberg via Getty Images)
"Thanks to the leadership of @POTUS @realDonaldTrump, we are acting fast to ensure Americans’ taxes are not funding acts of global terror. We will share our findings as our investigation continues," he added.
The New York Times reported that what initially appeared to many Minnesotans as an isolated case of pandemic-era fraud has broadened into a much wider concern for state and federal officials. Over the past five years, law enforcement authorities say, several fraud schemes proliferated in parts of Minnesota’s Somali community, with individuals allegedly creating companies that billed state agencies for millions of dollars’ worth of social services that were never delivered.
Walz addressed the alleged fraud at a press conference last week, saying it "undermines trust in government," and "undermines programs that are absolutely critical in improving quality of life."
"If you’re committing fraud, no matter where you come from, what you look like, what you believe, you are going to go to jail," Walz said.
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He faced a question about the situation on NBC’s "Meet the Press" on Sunday, when host Kristen Welker asked if he takes responsibility for failing to stop the fraud in his state.
"Well, certainly, I take responsibility for putting people in jail," the governor responded. "I will note, it’s not just Somalis. Minnesota is a generous state. Minnesota is a prosperous state, a well-run state. We’re AAA-bond rated. But that attracts criminals. Those people are going to jail. We’re doing everything we can. But to demonize an entire community on the actions of a few — it’s lazy," he said.
Fox News’ Greg Wehner and Ashley Carnahan contributed to this report.
Michael Dorgan is a writer for Fox News Digital and Fox Business.
You can send tips to michael.dorgan@fox.com and follow him on Twitter @M_Dorgan.
https://www.foxnews.com/politics/comer-targets-walz-new-house-investigation-citing-nearly-1b-alleged-minnesota-fraud