(The Epoch Times)—Two of Minnesota’s top officials—Gov. Tim Walz and Attorney General Keith Ellison—testified before Congress for more than four hours on March 4 about their state’s multibillion-dollar fraud controversies.
During the latest hearing on Capitol Hill, Republicans tried to pin down when the two Democratic leaders were alerted to the fraud, why payments continued afterward, and what role politics may have played.
Rep. James Comer (R-Ky.) summed up the scandal this way: “While whistleblowers were silenced, fraudsters got rich.” Comer chairs the House Committee on Oversight and Government Reform, which has now held two hearings on Minnesota fraud cases this year.
While Democrat members of the committee agreed with Republicans’ demand to hold fraudsters accountable, some Democrats pivoted away from the issue of fraud. They said the committee ought to instead focus on U.S. Immigration and Customs Enforcement (ICE) actions in Minnesota, where confrontations turned deadly twice in January.
Here are four takeaways.
Payments ‘Kept Flowing’ After Fraud Alarms
While Walz has said that his administration acted quickly, Comer said “that claim does not hold up to the facts.”
Even after fraud was “known, documented, and repeatedly brought to the attention of state leadership,” state employees “kept payments flowing,” Comer said.
Rep. Byron Donalds (R-Fla.) said the committee’s investigation found that state agency leaders directly notified Walz’s chief of staff by May 2020 about concerns regarding Feeding Our Future, a nonprofit organization that was paid to provide meals to children.
Its payments skyrocketed from $307,000 in 2018, a year before Walz took office, to nearly $200 million by 2021, Donalds said—despite the fraud alarms.
Authorities alleged that the organization stole nearly $300 million; dozens of people, mostly Somalis, have faced related federal charges since 2022.
Several Republicans noted that Somalis overwhelmingly vote for Democrats and accused Democrats in Minnesota of turning a blind eye to retain that political support. Walz denied that accusation.
Rep. Jim Jordan (R-Ohio) confronted Walz for publicly stating that payments to Feeding Our Future restarted under a court order.
Ramsey County District Court Judge John H. Guthmann said he never issued any such order, according to a 2022 statement from the judge.
Jordan asked Walz, “Why didn’t you tell the truth?” The governor responded that “the agency believed that the court had required them to make those payments.”
Republicans also cited significant Walz-era increases in funding for other programs where fraud was uncovered: autism therapy, child care, and a housing-affordability program.
Walz conceded he was aware of systemic fraud allegations before he took office, and said he took steps to address them. However, “We’re not going to shut down programs” that are otherwise worth it, Walz said.
Repeatedly, the governor denounced fraud, saying, “one dollar is too much.”
Whistleblower Retaliation Alleged and Denied
Rep. Tim Burchett (R-Tenn.) told Walz, “Almost 30 whistleblowers accused you and your administration of retaliation.”
Walz responded, “I can tell you it didn’t happen. … There’s a zero tolerance for whistleblower retaliation in Minnesota.”
Rep. Brandon Gill (R-Texas) pointed to the case of a state employee—a lifelong Democrat—who “was called ‘racist’ and her work responsibilities were diminished” after she blew the whistle on fraud. Many whistleblowers have reported being called “racist” or “Islamophobic” for pointing out fraud allegations against Somalis, who are predominantly black Muslims.
In response, Walz said that Minnesota offers “very strong whistleblower protections.” He also said it is illegal to retaliate against whistleblowers or intimidate them.
Gill replied, “Your administration has treated whistleblowers like absolute dirt, and that’s a big reason why we’ve seen so much of our hard-earned tax dollars defrauded.”
Burchett also named some specific organizations that were never prosecuted.
“Every dad-gum one of you all ought to step down,” Burchett said. Other Republicans also called for resignations from Walz and Ellison.
‘Compassion Over Compliance’
Rep. William Timmons (R-S.C.) raised concerns about former and current Minnesota welfare agency employees stating they were told to emphasize “compassion over compliance” when dealing with recipients of government aid.
Documents back up statements showing that employees were told that they should behave based on a “mindset” of 70 percent compassion, 30 percent compliance, Timmons said.
“After acknowledging how widespread and pervasive fraud is in Minnesota, how should your state employees prioritize program compliance? What is your message to people now relative to this compassion–compliance ratio?” Timmons asked.
Walz said he agreed with Timmons.
“It’s not an either-or, and it’s not a percentage,” the governor said.
“We’re not going to stop these programs … [but] we need to have fraud prevention and program integrity.”
Walz, Ellison Defend Record
Walz, in a written statement, vowed: “In Minnesota, if you defraud public programs, if you steal taxpayer money, we will find you, we will prosecute you, we will convict you, and we will throw you in jail.”
He acknowledged that the governor has an important role in fighting fraud and that “the buck ultimately stops with me.”
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