HHS probes Minnesota's use of billions in federal social service funds amid fraud concerns: report

The Department of Health and Human Services launches review of Minnesota's use of $8.6 billion in federal social service funding under Gov. Tim Walz's administration.

Minnesota Gov. Tim Walz has said, "Minnesota is a prosperous state, a well-run state." (AP Photo/Meg Kinnard)

The Post reported that Minnesota received more than $8.6 billion in ACF funding between fiscal years 2019 and 2025 through more than 1,000 federal grants. In fiscal year 2025 alone, the state received over $690 million for safety-net programs under President Biden, according to federal spending records reviewed by the Post.

In the letters, Adams requested what the Post described as a "comprehensive list" of all state entities that received ACF funding during that period, along with detailed administrative data. The information sought includes recipient names, addresses, dates of birth and, where applicable, Social Security numbers and immigration A-numbers, the Post reported.

Adams told the Post that HHS has "legitimate reason to think that they’ve been using taxpayer dollars incorrectly," citing recent fraud investigations and allegations involving Minnesota’s Department of Human Services. According to the Post, the letters referenced public statements from hundreds of DHS employees alleging warnings of fraud were disregarded and whistleblowers faced retaliation.

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Men take part in a weekly Friday Jum’ah prayer session at Abubakar As-Saddique Islamic Center amid a reported ongoing federal immigration operation targeting the Somali community in Minneapolis, Minnesota, U.S. Dec. 5, 2025.   (Tim Evans/Reuters)

According to the Post, the ACF review includes several major federal programs, including the Community Services Block Grant, Social Services Block Grant, Low-Income Home Energy Assistance Program, Title IV-E Foster Care, Refugee Cash and Medical Assistance, the Child Care and Development Fund, and Parents in Community Action, a Head Start grantee.

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"The Trump Administration has made clear its commitment to rooting out fraud, protecting taxpayer dollars, and ensuring program integrity across all federal benefit programs," Adams wrote in the letters, according to the Post. "This information is necessary for ACF to conduct a thorough review of program operations and to assess the extent of any irregularities that may have occurred."

Fox News Digital reached out to Gov. Walz, Mayor Jacob Frey and HHS for comment but did not receive an immediate response.

Jasmine Baehr is a Breaking News Writer for Fox News Digital, where she covers politics, the military, faith and culture.

https://www.foxnews.com/politics/hhs-probes-minnesotas-use-billions-federal-social-service-funds-fraud-concerns-report