Feds GIVE WALZ Deadline in Explosive Fraud Probe

A disability advocate’s explosive testimony at a Minnesota House hearing exposed how Governor Tim Walz’s administration failed 600,000 disabled residents while allowing millions in taxpayer dollars to be stolen through fraudulent social services schemes.

Story Highlights

Nathaniel Olson demanded Walz’s resignation during heated fraud prevention committee hearing
Over $240 million stolen through Feeding Our Future and related social services fraud schemes
Whistleblowers report retaliation from state inspector general under Walz administration
Federal investigators demand documents from Walz by December 17, 2025 deadline
600,000 disabled Minnesotans face service disruptions and evictions amid fraud crackdown

Advocate Unleashes on Walz Administration

Disability advocate Nathaniel Olson delivered a scathing rebuke of Governor Tim Walz during a recent Minnesota House Fraud Prevention Committee hearing. Olson accused the Democratic governor of abandoning vulnerable residents while social services fraud spiraled out of control. “We’re done with this fraud… hold our governor accountable,” Olson declared, speaking on behalf of 600,000 disabled Minnesotans who face service cuts and potential evictions. His testimony highlighted the human cost of administrative failures that allowed fraudsters to steal millions in taxpayer funds meant for the state’s most vulnerable citizens.

Committee Chair Kristin Robbins revealed that whistleblowers within state agencies are “terrified” of retaliation from Walz’s inspector general. The hearing exposed how the state continued making payments to indicted Feeding Our Future defendants even after federal prosecutors filed charges. Robbins announced that new evidence uncovered during the hearing would be referred to federal prosecutors, adding to the mounting pressure on Walz’s administration to provide accountability for the unprecedented fraud scandal.

Massive Fraud Schemes Target Vulnerable Populations

The fraud extends far beyond the infamous Feeding Our Future scandal, reaching into programs designed to help disabled individuals and homeless populations. Criminals exploited assisted living programs, autism treatment services, and housing stabilization funds, stealing an estimated $240 million in federal money. The schemes specifically targeted vulnerable communities, with fraudsters billing for nonexistent services while purchasing luxury items and real estate. These programs, administered under Walz’s oversight, became cash cows for criminals who exploited pandemic-era waivers and reduced oversight measures.

The Feeding Our Future nonprofit alone billed for nonexistent child meals, resulting in charges against 78 defendants with 55 already convicted. Additional schemes include $104 million in housing stabilization fraud and $14 million in autism treatment fraud that preyed on the Somali community through kickback arrangements. Despite red flags identified in audits, state agencies under Walz’s administration failed to take decisive action, citing fears of litigation and negative press coverage rather than protecting taxpayer funds and vulnerable populations.

Federal Pressure Mounts as Deadline Looms

House Oversight Chairman James Comer has launched a federal investigation into Minnesota’s social services fraud, demanding documents from both Walz and Attorney General Keith Ellison by December 17, 2025. Comer’s investigation focuses on whether state officials covered up the extent of fraud and retaliated against whistleblowers who attempted to expose the schemes. The federal probe represents a significant escalation in accountability efforts, as Republicans seek to expose what they characterize as negligent oversight and potential political corruption within Minnesota’s Democratic leadership.

The Department of Homeland Security has accused state agencies of deleting data and withholding records related to the fraud investigations. This obstruction has raised concerns about a systematic cover-up designed to protect Walz’s political future and shield the administration from responsibility. Federal prosecutors continue pursuing active cases, with new charges filed as recently as September 2025 in autism fraud schemes, demonstrating the ongoing scope of criminal activity that flourished under inadequate state oversight.

Walz’s response has been to pause 14 high-risk Medicaid programs and outsource audits to private companies, claiming his administration has recovered $50 million with 1,300 cases under investigation. However, critics argue these reactive measures come too late and fail to address the systemic failures that allowed fraudsters to operate with impunity for years. The program pauses have disrupted essential services for disabled residents, creating the very crisis Olson warned about during his passionate testimony calling for genuine accountability and leadership change.