The fraud reckoning

The truth about fraud in Minnesota public programs has finally reached social media and national news. Viral videos by an independent investigator revealed that Minnesota has squandered state and U.S. tax dollars on nonexistent children’s food and care, paying for services never rendered on a scale unprecedented anywhere.

What could have prevented this? And what could the legislature have done?

Many people tried to prevent daycare benefit fraud and other abuses of the system. For decades, the Office of the Legislative Auditor has produced report after report detailing the failings of the administrative state around public welfare programs. After these reports came out, some legislators have been spurred to act by passing bills intended to “fix” the problems.

Why didn’t they succeed? Because these efforts were stymied by other legislators who supported Governor Walz’s view that the legislature had no business trying to manage his administration, even when it had repeatedly failed to address fraud. They were complicit in keeping the fraud in place and shirking one of the legislature's primary functions: oversight of the executive branch.

So, when you read about fraud and the failure to stop it, remember that there were people who tried to sound the alarm, but there were also those who did everything they could to keep the money flowing to the fraudsters. If you don’t believe me, take a look at this debate on childcare fraud legislation from the Minnesota House in 2019. In it, House Democrats had a weak bill to address the fraud by allowing the fraudsters time to come up with the “corrections” they needed to keep getting funded. House Republicans, including me, disputed that this bill would do anything to prevent the fraud from continuing and offered amendments to implement basic anti-fraud reviews and audits of the program. These were all rejected. We were called racists and haters for our efforts.

Audits can prevent ongoing fraud, but they only catch it after it starts. To prevent it, we need to adjust Minnesota's system of checks and balances. The legislature must regain some of its authority over the executive branch in overseeing its programs. Additionally, we should reduce the number and complexity of programs to make them less vulnerable to exploitation by criminals.

I was part of the group that worked on a bill last year that would create an Office of the Inspector General. It was blocked in the House by Governor Walz and his Democrat supporters. The OIG would be an independent office, like the OLA, but with investigative and law enforcement power. It would not have to wait for the legislature to act, and it would not be caught up in partisan debate.

Many people have asked, Why do we need a new agency? Why can’t we give those powers to the Legislative Auditor? I don’t like the idea of creating more government. But we cannot create an unconstitutional usurpation of power by the legislature that could be challenged in court. Many states have created Inspector General Offices and similar institutions and have found them to be valuable tools in combating fraud.

An OIG is not the only tool at our disposal. We must strengthen our whistleblower laws to protect honest people who come forward with information. They have been our best allies in stopping fraud. Currently, their only protection under the law is the right to sue for wrongful termination or to prove retaliation. That isn’t much of an incentive to come forward. We can create a better pathway for investigation without exposing them to risk.

There will be much more news about this in the coming days. The guilty must be caught and punished, which is a job for law enforcement and the courts. The Trump administration is doing what it can to get the resources to the U.S. Attorney who will be prosecuting most of these cases because federal tax dollars were abused. At the legislature, our focus will be on what we can do to ensure this can’t happen again. And it must start with overhauling our oversight role.

New laws in 2026

As is usual, Minnesota has a significant number of laws taking effect January 1, 2026. This year, there are new laws that affect workers, outdoor recreation, and protections for vulnerable adults.

Paid family and medical leave

A new state-run Paid Family and Medical Leave program starts, allowing most Minnesota workers to take up to 12 weeks of medical leave and 12 weeks of family leave per benefit year, with a combined cap of 20 weeks of paid benefits. Benefits are funded by a 0.88% payroll tax shared between employers and employees, and the program operates similarly to unemployment insurance with job protection for covered leave. (See my last newsletter for a write-up on this vast and probably unsustainable expansion of government into the employer-employee benefits area.)

Meal and rest break changes

Employers must provide a paid rest break of at least 15 minutes for every four consecutive hours worked, and this time must be counted as hours worked.

Employers must also provide at least a 30‑minute meal break for every 6 consecutive hours worked, tightening the previous “sufficient time to eat” standard.

Outdoor and natural resources changes

The “shotgun zone” for taking deer during the regular firearms deer hunting season in southern Minnesota is repealed. Hunters statewide may use any legal firearm for deer unless a county enacts its own restriction, after a public hearing and passage of a county ordinance. County sheriffs would enforce such an ordinance, not the State Department of Natural Resources, as was the case with the “shotgun zone.”

Watercraft fee increases

The annual invasive‑species watercraft surcharge increases from $10.60 to a tiered range of $14 to $62, depending on boat size, type, and use. Specific water‑use permit fees are also increasing. I fought these increases and will continue to try to roll back the rising cost of enjoying our outdoors.

Protections for vulnerable adults

People can now petition a district court for an order for protection against financial exploitation of a vulnerable adult, with a hearing required within 14 days. Courts may grant relief such as prohibiting contact and freezing assets or credit lines if the vulnerable adult is in imminent danger of exploitation or irreparable financial harm.

Elections

Absentee ballot applications will require both a Minnesota driver’s license/state ID number and the last four digits of a Social Security Number unless the applicant certifies they lack these.

Third-party (groups or political party) Mailings with absentee ballot applications or sample ballots must include disclaimers clarifying they are not official government communications.

Other changes include the inclusion of phonetic name spellings for candidates on candidate filing documents, faster public information list processing, restrictions on campaign contributions for inaugural/transition expenses, and immediate reporting of self-contributions exceeding limits.

The fraud reckoning

New laws in 2026

Speciality crop grants available from the Department of Agriculture