• What Happened: The House Oversight Committee released a damning report today titled "The Cost of Doing Nothing," concluding that Gov. Tim Walz and AG Keith Ellison knew about massive fraud in Minnesota's welfare programs as early as 2019, lied about it, and retaliated against whistleblowers, as both men testified under oath.
  • Why It Matters: Federal prosecutors estimate criminals stole up to $9 billion in taxpayer money meant to feed children, house the disabled, and fund healthcare, with much of the fraud concentrated in Minnesota's Somali immigrant community, including funds allegedly diverted to terrorist networks overseas.
  • Bottom Line: When asked about program funding that exploded from hundreds of thousands to hundreds of millions on his watch, Walz's repeated answer to Congress was "not specifically."

Tim Walz and Keith Ellison sat before Congress today. The report waiting for them was titled "The Cost of Doing Nothing."

The House Oversight Committee released its explosive interim staff report Wednesday morning, just hours before Minnesota's governor and attorney general were sworn in to testify. Based on transcribed interviews with nine current and former Minnesota state officials, the report concluded that Walz and Ellison were aware of widespread fraud in federally funded welfare programs as early as 2019, possessed the legal authority to stop payments, and chose not to. Instead, they retaliated against the whistleblowers who raised the alarm.

"Testimony obtained by the Committee reveals that Gov. Tim Walz and Attorney General Keith Ellison were aware of widespread fraud in social service programs, lied about their knowledge of the fraud, and retaliated against employees who dared to raise concerns," said Oversight Committee Chairman James Comer. "Instead of protecting vulnerable Americans, they handed over billions in taxpayer dollars to fraudsters and threw their own state employees under the bus."

The numbers are staggering. Federal prosecutors estimate criminals stole up to $9 billion in taxpayer funds intended to feed children, support autistic children, house the disabled, and fund Medicaid. Much of the fraud was concentrated within Minnesota's Somali immigrant community, with some funds allegedly diverted to terrorist networks overseas.

The hearing exposed how spectacularly these programs exploded under Walz's watch. Rep. Byron Donalds walked the governor through the numbers one by one. Feeding Our Future grew from $307,000 in 2018 to $199 million in 2021. Autism centers grew from $24 million to $342 million. Housing Stabilization Services grew from $27 million to $105 million. Walz's answer each time: "Not specifically, but I know it increased."

Rep. Tom Emmer confronted Attorney General Ellison over a taped conversation between Ellison and future defendants in the Feeding Our Future fraud case, accusing him of engaging in a "quid pro quo" in exchange for campaign donations and actively obstructing the investigation. "If these concerns are proven to be true, you should be disbarred, and you should go to jail," Emmer said.

The committee also revealed that when Minnesota's Department of Education found Feeding Our Future in "serious deficiency" in March 2021 and moved to cut off funding, it reversed course within weeks because the nonprofit's founder, Aimee Bock, threatened a racial discrimination lawsuit. Officials approved four additional program sites for the organization even after fraud concerns had been raised. Bock was later charged and convicted in the fraud scheme.

MDE Assistant Commissioner Daron Korte testified that Walz's office would have been informed of fraud concerns by April 2020, and that Ellison's office received notice as well.

Walz told the committee he wouldn't stop payments "that feed children" without proof. Comer told him directly that he allowed payments to continue "because you didn't want to rock the boat."

American taxpayers are still waiting for a different answer.