Rep. Byron Donalds, R-Fla., who serves on the House Committee on Oversight and Government Reform, said Minnesota Gov. Tim Walz and Attorney General Keith Ellison “absolutely knew what was going on” regarding large-scale fraud tied to federally funded social service programs in Minnesota, but failed to take action.
Donalds, made the remarks Wednesday on Newsmax following the committee hearing that examined allegations of widespread abuse involving federal taxpayer funds flowing through several state-administered programs in Minnesota.
“They absolutely knew what was going on. They watched it happen,” Donalds said. “Tim Walz and Keith Ellison came into committee not prepared to answer questions about what they knew, when they were notified, and what the corrective measures were.”
The Florida congressman said testimony presented to lawmakers suggested Walz had been informed about issues earlier than publicly acknowledged.
“It’s pretty clear from all the testimony we received from officials in the state of Minnesota before today’s hearing that Tim Walz fully knew what was going on,” he said. “He was briefed on what was going on. His former chief of staff was fully briefed on it, and they dithered and did nothing.”
“The only logical conclusion is that they were colluding to make sure that the fraud continued,” Donalds added.
Walz has previously said Minnesota officials are cooperating with federal investigators probing potential fraud and claimed his administration has taken steps to curb abuse, including suspending payments to providers suspected of wrongdoing and ordering audits of programs considered vulnerable.
During the hearing, lawmakers focused on allegations that billions of federal dollars tied to Minnesota social service programs were used for fraudulent activity. Programs discussed included Medicaid-funded initiatives such as Housing Stabilization Services, Early Intensive Developmental and Behavioral Intervention for Autism, and Integrated Community Supports.
Federal prosecutors and investigators have described the suspected schemes as widespread and operating on an “industrial-scale,” with some warning that the total amount lost could reach into the billions.
Housing Stabilization Services alone expanded rapidly, growing from an estimated $2.6 million initiative to more than $100 million in annual claims within just a few years. Investigators said similar surges in other programs created conditions that made them susceptible to fraud.
Donalds also stated testimony revealed that officials were alerted to potential problems but did not intervene and that whistleblowers faced pressure.
“In my questioning, we established the fact that whistleblowers were intimidated, that the lieutenant governor, Peggy Flanagan, she was intimidating whistleblowers,” Donalds said. “They did not want to get to the bottom of this.”
According to Donalds, Walz only acted once public attention to the issue grew online.
“It was only until social media exploded about this fraud that Tim Walz decided he was going to act. That was six years too late,” Donalds said. “Millions and billions of dollars were stolen.”