The House Oversight and Accountability Committee, chaired by Rep. James Comer (R-KY), has opened a wide-ranging investigation into what it describes as a massive fraud operation involving federal funds in Minnesota’s social services system. The probe will officially begin on January 7, 2026, with a hearing that includes testimony from Minnesota state lawmakers who claim they were repeatedly ignored when raising concerns about financial misconduct.
The investigation focuses on what Chairman Comer has called a “heist” of taxpayer money under the leadership of Democrat Governor Tim Walz and Attorney General Keith Ellison. Comer has invited both officials to testify before Congress on February 10, accusing them of either being negligent or knowingly complicit in the loss of billions in federal funds.
To support the inquiry, the Oversight Committee has requested Suspicious Activity Reports (SARs) from the U.S. Treasury Department and will conduct transcribed interviews with various state officials.
The congressional investigation comes as the Trump administration intensifies its own crackdown on fraud in Minnesota. Small Business Administration Administrator Kelly Loeffler announced the suspension of nearly 7,000 Minnesota borrowers tied to around $400 million in potentially fraudulent pandemic loans. Meanwhile, the Department of Health and Human Services has frozen all federal childcare payments to the state amid a widening probe into daycare center scams.
Federal investigators are also zeroing in on fraudulent diagnoses of autism used to exploit benefits and a high-profile case involving the “Feeding Our Future” program, which allegedly funneled money meant to feed children into personal accounts.
House Majority Whip Tom Emmer (R-MN) has sharply criticized state leaders, accusing them of suppressing investigations to maintain political ties with certain immigrant communities. Reports suggest that up to $9 billion in taxpayer funds may have been lost to fraud in Minnesota since 2018.
While Governor Walz has dismissed the investigation as politically motivated, Comer insists that Congress has an obligation to hold public officials accountable and to prevent future abuses.
“This Committee is determined to expose the failures that allowed criminal actors to plunder federal programs and to ensure these funds are protected going forward,” Comer said.
The post House Oversight Launches Investigation Into Multibillion-Dollar Minnesota Fraud appeared first on Real News Now.
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