The House Oversight Committee has launched an investigation into Minnesota Gov. Tim Walz’s oversight of a large pandemic relief program that federal prosecutors say turned into the biggest COVID-19 fraud scheme in the United States.
“Minnesota Governor Tim Walz was warned about massive fraud in a pandemic food-aid program for children, yet he failed to act,” Chairman James Comer, R-Ky., said in a statement obtained by Fox News Digital.
“Instead, whistleblowers who raised concerns faced retaliation,” Comer continued. “Because of Governor Walz’s negligence, criminals — including Somali terrorists — stole nearly $1 billion from the program while children suffered. The House Oversight Committee will conduct a thorough investigation into Governor Walz’s failure to safeguard taxpayer dollars.”
Comer’s move comes as the Treasury Department has also opened its own inquiry into the scandal, examining whether Minnesota tax dollars were diverted to the terrorist organization al-Shabaab.
The Justice Department has alleged that roughly $300 million in taxpayer funds intended to provide meals to low-income children during the pandemic was siphoned off through a nonprofit called Feeding Our Future, in what has grown to include at least 78 defendants. The U.S. Attorney’s Office in Minnesota has described it as the largest pandemic-relief fraud scheme charged so far in the country.
Some of the organizations implicated in the fraud were operated by Somali Minnesotans, according to federal prosecutors.
Minnesota education officials say Feeding Our Future and its affiliates submitted more than $500 million in claims, and Comer has argued that the total losses may have neared $1 billion.
Walz is facing mounting criticism after nearly 500 employees at the Minnesota Department of Human Services accused his administration of ignoring early warnings of widespread fraud and retaliating against internal whistleblowers.
As chair of the GOP-led committee, Comer has the authority to subpoena documents and witnesses, and to refer any potential criminal conduct to the Department of Justice.
A report from the Manhattan Institute’s City Journal, citing unnamed federal counterterrorism sources, claimed that some of the stolen money was routed overseas to Somalia and may have reached al-Shabaab. However, none of the federal indictments to date 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.”
“We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud but no, we got the opposite response,” they wrote.
“Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports,” the group alleged. “In addition to retaliating against whistleblowers, Tim Walz disempowered the Office of the Legislative Auditor, allowing agencies to disregard their audit findings and guidance.”
The launch of Comer’s investigation was first reported by the New York Post.
Fox News Digital contacted Walz’s office for comment but did not immediately receive a response.
Treasury Secretary Scott Bessent on Monday announced a separate federal probe into accusations that Minnesota tax dollars were funneled to al-Shabaab during the Biden administration and under Walz’s leadership — an allegation he said warrants urgent examination.
“At my direction, @USTreasury is investigating allegations that under the feckless mismanagement of the Biden Administration and Governor Tim Walz, hardworking Minnesotans’ tax dollars may have been diverted to the terrorist organization al-Shabaab,” Bessent posted on X.
“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.
According to reporting by The New York Times, what many Minnesotans initially saw as a one-off case of pandemic-era fraud has expanded into a broader concern for state and federal officials. Over the last five years, law enforcement authorities say, multiple fraud schemes have emerged in parts of Minnesota’s Somali community, with individuals allegedly creating companies that billed state agencies for millions of dollars in social services that were never provided.
Walz addressed the allegations at a press conference last week, saying the fraud “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.
He was pressed on the matter Sunday on NBC’s “Meet the Press,” where host Kristen Welker asked whether he accepts responsibility for not stopping the fraud sooner.
“Well, certainly, I take responsibility for putting people in jail,” the governor replied. “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.
