Vice President JD Vance has referred allegations involving Minnesota Gov. Tim Walz’s administration to the Justice Department after a House Oversight Committee report accused state officials of allowing billions of dollars in fraud to occur within taxpayer-funded programs.
Vance announced Monday night that he had asked the Justice Department’s newly created National Fraud Enforcement Division to investigate claims that Minnesota officials failed to stop widespread fraud and retaliated against whistleblowers who attempted to expose problems within the system.
“I’ve referred these allegations to DOJ’s new Fraud Division for criminal investigation,” Vance wrote on X. “Minnesota state officials are not above the law, and if they facilitated fraud, lied under oath about what they knew, or harassed and intimidated whistleblowers, they must face justice.”
The referral follows the release of a roughly 200-page report by the House Oversight Committee that alleges Minnesota’s Democratic leadership ignored warnings about vulnerabilities in state programs dating back to 2019.
According to the report, the Walz administration’s failure to address those concerns contributed to the loss of approximately $300 million in federal child nutrition funding and placed as much as $9 billion in Medicaid-related funding at risk.
The committee also accused Walz and Minnesota Attorney General Keith Ellison of failing to take corrective action after learning about the alleged problems and instead targeting individuals who raised concerns.
“If state officials in Minnesota or anywhere else in the country facilitated fraud or looked the other way while this theft was happening, if they actively prevented state and federal officials from stopping fraud and bringing fraudsters to justice, or if they intimidated and harassed whistleblowers who courageously tried to shine a light on the problem, they must be held accountable,” Vance wrote in his referral letter.
The investigation request was directed to Assistant Attorney General Colin McDonald, who leads the Justice Department’s National Fraud Enforcement Division.
The Trump administration has made combating fraud a major priority and has increasingly focused attention on Minnesota.
Earlier this year, federal officials suspended certain assistance payments to the state after videos published by independent journalist Nick Shirley appeared to show widespread abuse involving facilities operating as daycare centers.
Administration officials have argued that stronger oversight is needed to prevent taxpayer funds from being diverted through fraudulent schemes.
The White House has also expanded its anti-fraud efforts beyond Minnesota. Federal officials are reviewing allegations involving the administration of home healthcare funding in Ohio and examining other programs where officials believe taxpayer dollars may have been improperly spent.
Neither Walz nor Ellison immediately responded to Vance’s referral Monday night.
The allegations remain under investigation, and no criminal charges have been announced. However, the referral marks a significant escalation in the administration’s effort to pursue potential fraud involving government-funded programs and could place renewed scrutiny on Minnesota’s handling of billions of dollars in public assistance funds.
The post Vance Refers Walz Administration To DOJ Over Alleged $9 Billion Fraud Scandal appeared first on Real News Now.
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