Congress grills Walz, Ellison over Minnesota fraud as whistleblower intimidation claims surface

"There are 30 whistleblowers who have given letters to this committee on the record saying they have been subject to intimidation by your administration because they were trying to stop the fraud in Minnesota," Rep. Byron Donalds said.

Gov. Tim Walz and Minnesota Attorney General Keith Ellison testify before the House Oversight Committee Wednesday. (Oversight GOP/YouTube)

Gov. Tim Walz and Attorney General Keith Ellison faced blistering questions from the House Oversight Committee on Wednesday during a congressional hearing examining massive fraud tied to federally funded programs in Minnesota.

But while Republicans focused on the fraud itself, Democrats repeatedly used their time to pivot to Operation Metro Surge and immigration enforcement.

Rep. Jim Jordan, R-Ohio, opened the questioning by zeroing in on Walz’s past claim that a Ramsey County judge forced the Minnesota Department of Education to resume payments to Feeding Our Future despite red flags.

“That is false. Judge Guthmann never ordered the Department of Education to resume payments to Feeding Our Future in April 2021, or at any other time,” Jordan said. “So either you’re lying or the court’s lying. I’m just asking you — which one is it?”

Walz responded that the state’s attorneys interpreted the judge’s ruling differently.

“To the best of my knowledge, the attorneys at the Department of Education interpreted that differently,” Walz said.

Whistleblower intimidation allegations

Jordan also cited comments from fraud investigator Kayseh Magan, a Somali American who previously worked in the Minnesota Attorney General’s Office.

“There was a perception that forcefully tackling this issue might cause political backlash among the Somali community, which is a core voting bloc,” Jordan said.

Walz denied that political considerations played any role in pursuing fraud claims.

Rep. Byron Donalds, R-Fla., also raised allegations that whistleblowers who attempted to expose fraud in Minnesota faced intimidation. Donalds cited claims that Lt. Gov. Peggy Flanagan publicly criticized whistleblowers during an April 2024 event, allegedly referring to them as “losers in their mothers’ basements.”

“There are 30 whistleblowers who have given letters to this committee on the record saying they have been subject to intimidation by your administration because they were trying to stop the fraud in Minnesota,” Donalds said.

Walz responded by encouraging the whistleblowers to bring their reports to the Office of the Legislative Auditor.

Rep. Brandon Gill, R-Texas, also challenged Walz over allegations that state employees were discouraged from raising fraud concerns out of fear they would be labeled racist or Islamophobic.

“Would you agree that calling someone a racist is a serious accusation?” Gill asked.

After a pause, Walz replied, “I think it’s just an observation of reality.”

“Is it racist for a government official to identify fraud?” Gill asked.

“No,” Walz responded.

“Is it Islamophobic?” Gill continued.

“To identify fraud?” Walz asked. “No, I don’t believe it would be.”

“How come multiple whistleblowers have said that your administration told them not to say anything about widespread fraud across multiple agencies because doing so would be considered Islamophobic or racist?” Gill asked.

“I can’t speak to it because that isn’t anything I would say,” Walz replied.

“Well, that’s what your administration has said and has told whistleblowers,” said Gill.

For his part, Ellison praised Minnesota’s Somali community during the hearing, saying: “They’ve gotten professional degrees. They are great neighbors who volunteer and help their neighbors. They have been a benefit to our state.”

Emmer questions Ellison’s meeting with fraudsters: ‘You should go to jail’

Rep. Tom Emmer, R-Minn., accused Ellison of downplaying the seriousness of the fraud and questioned his interactions with people later charged in the case.

Emmer cited a December 2021 meeting between Ellison and individuals connected to Feeding Our Future.

“There’s a 54-minute audio recording of your meeting with these criminals,” Emmer said. “During your meeting they complained to you about increased scrutiny of their nonprofits and you told them, ‘Of course, I’m here to help.’”

Emmer also pointed to statements Ellison made during that meeting criticizing the Minnesota Department of Education.

According to Emmer, Ellison said the department treated the nonprofits in “very disgusting ways” and described the scrutiny as “racist, xenophobic and Islamophobic.”

“My concern is that you actively obstructed this investigation in exchange for campaign donations — a quid pro quo,” Emmer said. “If these concerns are proven to be true, you should be disbarred and you should go to jail.”

Comer presses officials on why payments continued

House Oversight Committee Chairman James Comer, R-Ky., pressed Walz and Ellison on why payments continued across several programs despite repeated fraud warnings.

“Despite those warnings, you did not order a broad stop-payment or suspension of payment in any program at that time, correct?” Comer asked Walz.

“We’re not going to stop payments to feed children until we have proof that things happened,” Walz said.

Comer then asked Ellison whether his office ever directed agencies to halt payments while fraud allegations were investigated.

“My office doesn’t have the authority to do a stop payment,” Ellison said. “I prosecute criminals when they’re presented to us by the agencies.”

Comer responded that prosecutions alone were insufficient.

Republicans describe Minnesota fraud as national ‘wow’ moment

Rep. Clay Higgins, R-La., described the scale of fraud uncovered in Minnesota as shocking to investigators across the country.

“When we started looking into waste, fraud, abuse and theft across the country, Minnesota surfaced as a ‘wow’ moment,” Higgins said. “There were billions and billions and billions of dollars being stolen.”

Walz disputed that characterization.

“I’ll keep saying this, one dollar is too many,” Walz said. “But that number gets thrown around. There’s nothing behind it.”

Higgins concluded his questioning by stating: “I’m going to say, Mr. Chairman, that the attorney general of the state of Minnesota should resign.”

Mace confronts Walz over spending increases of ‘34,200%’

Rep. Nancy Mace, R-S.C., accused Walz and Ellison of presiding over “one of the worst government fraud scandals in American history.”

“This was money intended to feed hungry children, help kids with autism, provide food and shelter and health care to the needy,” Mace said. “You both allowed billions in these American taxpayer dollars to be pillaged and plundered.”

The exchange escalated when Mace asked Walz, “What is a woman?”

Walz declined to answer directly, saying: “I’m the governor of Minnesota. I’m not here to be your prop for your obsession.”

“If you can’t define what a woman is, you certainly can’t define what fraud is,” Mace said.

Mace also questioned Walz about autism services spending, citing an increase from about $1 million in 2017 to roughly $343 million in 2024 — which she described as a “34,200% increase.”

Walz said he did not have the specific figures available during the hearing.

 

Jenna Gloeb

Jenna Gloeb is an Edward R. Murrow Award-winning journalist, media producer, public speaker, and screenwriter. Most recently, she worked as a reporter and on-air host for CCX Media. Jenna is a Minnesota native and resides in the Twin Cities with her husband, son, daughter, and two dogs.