The state has increasingly drawn public anger over allegations of fraud related to government services, particularly from the White House and Republicans in Congress.
HHS freezes Minnesota child care funds after fraud allegations
The federal Department of Health and Human Services has frozen all child care payments to the state of Minnesota, citing “blatant fraud” at the state’s child care centers.
Congressional Republicans have invited Tim Walz, Minnesota’s Democratic governor and former vice presidential candidate for Kamala Harris in the 2024 presidential election, to testify before lawmakers about the fraud scandal rocking the state.
Rep. James Comer (R-Ky.), chairman of the House Oversight and Government Reform Committee, scheduled a hearing featuring the governor for Feb. 10. The announcement comes days after influencer Nick Shirley posted a video on social media alleging fraud at multiple child care centers in Minnesota.
In a statement, Comer accused Walz of being “drowsy at the wheel” while federal prosecutors siphoned hundreds of millions of dollars in taxpayer money from child nutrition programs. The Justice Department is calling it “the nation’s largest COVID-19 fraud scheme.”
Allegations of fraud in Minnesota’s social welfare program are increasing the anger of the White House and Republicans in Congress. On Dec. 30, the federal Department of Health and Human Services announced it would suspend child care payments to states amid the controversy.
Walz, who is facing calls for his resignation from Republicans, criticized the Trump administration for politicizing what he called a “serious problem” and highlighted the president’s own pardons for people convicted of fraud.
In a statement to USA TODAY, Walz’s office said that while the governor is “happy to work with the Legislature,” the House Oversight Committee “has a track record of holding circus hearings that have nothing to do with the issue at hand.” His office has not confirmed whether Walz has accepted the invitation to testify.
The first hearing on the matter is scheduled for 9 a.m. January 7, according to the House Oversight Committee. Minnesota State Representatives Kristin Robbins, Walter Hudson, and Marion Rarick are named as witnesses. All three are Republicans, and more are expected to join.
In early December, Assistant U.S. Attorney Joe Thompson said at least half of the $18 billion paid through Minnesota’s 14 Medicaid waiver programs since 2018 may also be fraudulent.
Zachary Schermele is a Congressional reporter for USA TODAY. You can email us at zschermele@usatoday.com. Follow him on X at @ZachSchermele and on Bluesky at @zachschermele.bsky.social..
Corey Schmidt covers politics and public safety for the St. Cloud Times. He can be reached at cschmidt@gannett.com.
