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If you'd like to contact Rep. Dippel, please do NOT reply to this email. Rep. Dippel can be reached at [email protected]
Hello from the State Capitol,
Minnesota has a fraud problem. For years, the Walz administration and Democrats tried to ignore the problem or deflect that they had any responsibility. With nearly $2 billion – that we know about - lost to people who have scammed the system and 3 federal investigations opened in the last week that are now centered on Minnesota fraud, pretending the problem exists is no longer acceptable.
Fraud of this magnitude just doesn’t pop up out of nowhere. It takes a system that tolerates negligence. It takes leaders who overlook warnings, and fear being called out for allowing the fraud to happen more than taking action to stop it.
The nonpartisan Office of the Legislative Auditor (OLA) has repeatedly documented these failures. Reports have highlighted missing documentation, inadequate oversight, and a lack of follow-through in the very agencies responsible for enforcing compliance. Even the Governor’s Office was recently cited for multiple violations of state policy. Because OLA findings are recommendations rather than requirements, agencies can ignore them, which is why the same failures keep reappearing year after year.
Read a StarTribune commentary from former legislative auditor James Nobles titled: “Is the Walz administration finally awake about fraud?” to learn more. The most damning passage references the late House Speaker Melissa Hortman, who Nobles said “knew the fraud OLA was addressing was real and needed to be investigated. She did, however, acknowledge that House committee chairs had been instructed not to give OLA reports about fraud any public hearings.” Fears from House Democrat committee chairs that human service programs would face too much criticism, particularly programs administered by Somali community organizations, apparently took precedence over acting on the OLA reports.
The Feeding Our Future debacle opened the floodgates. More than $250 million meant to feed children was stolen. The Housing Stabilization Services program was designed to help Minnesotans with disabilities and those facing homelessness. Investigators uncovered widespread falsification of records and claims for services that never happened. Medicaid, Supplemental Nutrition Assistance Program (SNAP), autism centers, childcare assistance programs, and unemployment benefits were also ripped off. The fraud list in this state literally grows by the week.
During the week of December 1, we learned this as it related to fraud in our state:
- A group of whistleblower state employees made a lengthy post on X saying, “Tim Walz is 100% responsible for massive fraud in Minnesota.”
- The New York Times penned a story titled "How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch."
- 1/3 of commercial driver’s licenses (CDLs) were issued invalidly in Minnesota, putting $30.4 million in federal highway funding at risk.
- U.S. Treasury Secretary Scott Bessent called for an investigation into whether Minnesota tax dollars were used to help fund al-Qaida-linked Islamic terror group Al-Shabaab.
- The federal Small Business Administration is investigating a network of Somali groups in Minnesota that it says is tied to a massive COVID fraud scandal highlighting alleged systemic failures by Gov. Tim Walz’s team to properly audit public funds.
- The House Committee on Oversight and Government Reform Committee Chairman James Comer announced an investigation has been launched into “widespread fraud in Minnesota’s social programs under Governor Tim Walz’s watch.”
- The Trump administration announced it will withhold some SNAP funding because Minnesota refuses to turn over SNAP data. Federal records show SNAP payouts in Minnesota increased 174% between 2020 and 2021, with payouts increasing from about $725 million in 2020 to nearly $2 billion the following year.
That’s just one week!
I fear all these fraud reports are just the tip of the iceberg. Many of these fraudulent acts have been brewing for years while the Walz administration either ignored or deflected any criticism or, worse, facts.
Our state is in the news for all the wrong reasons these days, and when it comes to fraud, nearly every bit of it was preventable had people in leadership done their jobs and been willing to act.
If you suspect misuse of taxpayer funds or unethical behavior in a state-funded program, you can report it confidentially through the Whistleblower Portal at MNFraud.com. I fear this fraud problem isn’t going away, and if you your gut tells you something isn’t right, please share your information.
Talk to you soon,
Tom
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