Congressional Hearing on Minnesota Fraud: Walz and Ellison Testify Amid Competing Narratives

FOX 9 Minneapolis-St. Paul covered a House Oversight and Government Reform Committee hearing examining alleged fraud in Minnesota’s social service programs and the Trump administration’s Operation Metro Surge enforcement actions.

According to the committee’s opening statements, federal prosecutors estimate that as much as $9 billion may have been stolen from 14 Medicaid programs administered by Minnesota since 2018, representing potentially half or more of the $18 billion spent on those programs. FOX 9 Minneapolis-St. Paul’s coverage highlighted the committee chair’s allegation that state leadership, including Governor Tim Walz and Attorney General Keith Ellison, failed repeatedly to intervene despite warnings from auditors, whistleblowers, and state employees.

FOX 9 Minneapolis-St. Paul reports that several programs experienced dramatic cost increases under scrutiny at the hearing: the child care assistance program allegedly saw providers accumulate dozens or more than 100 violations while still collecting millions; housing stabilization services allegedly exploded from an expected $2.6 million annually to over $100 million yearly; and the behavioral intervention program allegedly grew from $3 million to $400 million in five years. In the video, FOX 9 Minneapolis-St. Paul notes that the “Feeding Our Future” case alone allegedly involved nearly $300 million stolen from programs meant to feed children during the pandemic.

Regarding the Feeding Our Future program specifically, FOX 9 Minneapolis-St. Paul documents a contentious exchange where committee members alleged that Governor Walz claimed a court ordered the state to restart payments to the program in April 2021, but that judges subsequently issued a statement contradicting this. FOX 9 Minneapolis-St. Paul reports the court stated: “Governor Tim Walz told the media…Judge Gussman ordered payments to continue in April 2021. That is false.”

According to FOX 9 Minneapolis-St. Paul’s coverage, the governor defended his administration’s actions, stating his attorneys interpreted court orders differently and that Minnesota programs have “overwhelmingly achieved their intended purposes” while emphasizing that anyone defrauding public programs in Minnesota “will find you, we’ll prosecute you, we’ll convict you, and we’ll throw you in jail.”

FOX 9 Minneapolis-St. Paul also covered Attorney General Keith Ellison’s testimony, in which he reportedly claimed his office has won 300 Medicaid fraud convictions—more than any other state of similar size—and recovered over $80 million for Minnesota taxpayers. However, FOX 9 Minneapolis-St. Paul notes committee members alleged that Ellison met with individuals later charged in the Feeding Our Future fraud case in December 2021 and told them, “Of course, I’m here to help,” raising questions about the timing of his office’s involvement.

A significant portion of the hearing, as documented by FOX 9 Minneapolis-St. Paul, focused on Operation Metro Surge, the Trump administration’s immigration enforcement operation deploying thousands of federal agents to Minnesota. FOX 9 Minneapolis-St. Paul reports that witnesses, including Reverend Mariah Tollgard, testified about the operation’s impacts on Minnesota communities, including fear among families, school closures, and economic disruption. According to FOX 9 Minneapolis-St. Paul, Ranking Member Garcia alleged that Operation Metro Surge has resulted in two deaths of US citizens by federal agents—identified as Renee Good and Alex Pretty—and that six high-ranking federal prosecutors resigned from the US Attorney’s Office related to the operation.

FOX 9 Minneapolis-St. Paul documents that committee members disputed whether Operation Metro Surge actually addressed fraud concerns. According to the video, Governor Walz allegedly stated that the operation “didn’t do anything” to prevent fraud and that Operation Metro Surge has “decimated” the FBI and US Attorney’s Office, hampering fraud investigations.

The hearing underscores a deep partisan divide, as FOX 9 Minneapolis-St. Paul’s coverage shows. Republican committee members focused on alleged failures by state leadership to stop payments despite fraud warnings, while Democratic members and witnesses emphasized the harms of Operation Metro Surge, questioning whether enforcement actions justified the reported violence, community disruption, and harm to legal residents and US citizens.

In FOX 9 Minneapolis-St. Paul’s Own Words

“Federal prosecutors estimate that as much as nine billion dollars may have been stolen from just 14 Medicaid programs administered by the state of Minnesota.”

“Governor Tim Walz told the media that the Minnesota Department of Education attempted end payments to FOAF because of possible fraud, but that Judge Gussman ordered payments to continue in April 2021. That is false.”

“Those lead investigators and basically that whole team has left that office. The US Attorney himself was in front of a federal judge yesterday on contempt issues of that office not working together.”

This hearing matters because it represents a high-stakes examination of both alleged long-term failures by Minnesota state officials to prevent fraud in social service programs and the Trump administration’s aggressive enforcement response, with profound implications for how federal and state authorities balance fraud prevention against constitutional protections and community safety.