Minnesota is set to become the first state targeted in what House Energy & Commerce Committee Chairman Brett Guthrie described as a sweeping congressional investigation into alleged systemic fraud, waste and abuse across government-funded social services programs, Fox News Digital reported.
In an exclusive interview, Guthrie told Fox News Digital his committee is preparing a broad review focused on whether state officials ignored warning signs or allowed misconduct to spread—while coordinating with a major sub-agency within the U.S. Department of Health and Human Services (HHS) to examine potential misuse of taxpayer funds.
Guthrie’s committee is demanding audits, provider records, fraud referrals and internal communications dating back several years, signaling an aggressive push to uncover how Minnesota’s state-administered programs—especially Medicaid-related initiatives—have been overseen and policed.
“The extensive fraud schemes being perpetrated in Minnesota have wreaked havoc on government-funded health programs,” the committee told Fox News Digital in a joint statement from Guthrie and Reps. John Joyce of Pennsylvania and Morgan Griffith of Virginia.
“We have an obligation to ensure finite taxpayer dollars are being used responsibly, and that the most vulnerable Americans are not being exploited to the benefit of fraudsters and foreign actors,” the lawmakers added.
They called the request for documents and answers “the next step” in a broader effort, arguing the committee intends to “root out fraud and restore program integrity” across federal health programs nationwide.
A source familiar with the investigation said Minnesota is likely just the start of what the committee described as “industrial-scale” fraud concerns inside state-run Medicaid programs.
“Minnesota is just the beginning,” the source said.
Committee staff, the source added, have recently attended briefings with the Centers for Medicare and Medicaid Services (CMS) and the Justice Department.
Record demands to Walz and Minnesota DHS
In a letter addressed to Minnesota Gov. Tim Walz and Minnesota Human Services Temporary Commissioner Shireen Gandhi, the committee said Minnesota is also under investigation by CMS on multiple fronts—an inquiry it said is being led by Administrator Mehmet Oz.
As CMS conducts its own review, Guthrie is requesting that Walz provide extensive records and written responses about how Minnesota is currently ensuring the integrity of federally funded programs, and what steps are being taken to stop millions in allegedly fraudulent payments from leaving the state.
By the end of the month, Walz is expected to explain what measures have been implemented since 2019 to detect fraud, waste and abuse—and what “enhancements” have been made over the past year as the issue drew increased scrutiny.
The committee also asked what types of audits Medicaid-related programs are undergoing, how criminal referrals are made when fraud is suspected, what the Department of Human Services is doing to sanction or disenroll providers accused of wrongdoing, and how Medicaid service providers are vetted for compliance with federal law.
“Is DHS [the Minnesota Department of Human Services] revalidating all Medicaid providers amid recent state and federal indictments and prosecutions of fraud? If so, please provide details and any relevant documentation regarding this process and the status of those efforts? Does DHS collect data on Medicaid programs with abnormal or statistically significant increases in provider enrollment or claims over time, including programs which greatly exceed their estimated cost upon enactment?” the letter asked.
Focus on 14 programs flagged as “high-risk”
The committee is also seeking to compel Walz to turn over all audits connected to 14 social services programs Minnesota previously identified as involving “high-risk provider types”—a designation critics argue can make certain programs especially attractive targets for fraudulent providers.
Programs named in the request include adult companion services, mental health and rehabilitation services, “community-first” services, night supervision services and recuperative care.
Guthrie, Joyce and Griffith also requested all communications involving Walz, his staff and state Medicaid Commissioner John Connolly.
In his letter, Guthrie said the criminal schemes alleged in Minnesota include overbilling, false records, identity theft and “phantom claims” within Medicaid social service and health programs serving the elderly and disabled, people dealing with addiction, and individuals experiencing homelessness.
The committee also claimed whistleblowers were “willfully ignored” or had their concerns “suppressed” by the Walz administration, and alleged that some people who attempted to report fraud faced retaliation.
Guthrie said the 14 high-risk social services programs cost Minnesota nearly $4 billion in combined state and federal tax dollars.
“Ensuring Medicaid program integrity is critical to preserving access to vital health care services for those that need it most,” the letter stated.
“Every dollar stolen from the Medicaid program by fraudsters is taken from children, pregnant women, the elderly, and people with disabilities.”
