Koznick Connection: A Message on Fraud

Friends and neighbors,

Today I want to speak plainly with you, because what’s happening in Minnesota right now should enrage every taxpayer—no matter your political beliefs. I am personally extremely frustrated, just like Chad, who called my office yesterday, and many others I’ve spoken with across our community.

You may have seen a video circulating online over the past couple weeks from an investigative journalist, Nick Shirley. It exposes something many of us have been warning about for years: nonprofit organizations pocketing millions in taxpayer dollars while delivering little to no real services—particularly in daycare and healthcare programs.

The fraud documented in the video predates the infamous Feeding Our Future scandal that stole over $250 million from taxpayers and led to nearly 90 indictments. We were assured that something like this would never happen again.

Now, the U.S. Attorney’s Office estimates there has likely been $9 billion stolen in fraud—money all Minnesotans could have used to better afford their own lives!

What House Republicans Have Done and WILL DO to Fight Fraud:

For years, House Republicans have been sounding the alarm and pushing real solutions—often in the face of resistance.

Republicans spearheaded the creation of the Fraud Prevention and State Oversight Committee. Our teams have done an incredible amount of investigation and research—years of work that has enabled much of the media coverage you’re now seeing locally and nationally.

House Republicans have introduced various measures just this last session to combat the fraud epidemic and will pass given a Republican majority this fall.

Establish an independent Office of Inspector General to investigate fraud and misuse across state government.
Strengthen fraud reporting requirements, expand state employee obligations to report suspected fraud, and authorized site visits to verify compliance in grant-funded programs.
Focus on agency accountability—ensuring state agencies actually implement internal control recommendations from the Office of the Legislative Auditor (OLA) instead of ignoring them.
Expand whistleblower protections, ensuring public employees can come forward without fear of retaliation.

Republicans also successfully worked to strengthen the Office of the Legislative Auditor, expanding its authority to conduct special reviews and audits—giving legislators better tools to catch problems early.

In addition, we supported payment withholding authority, which is now being used to identify and stop improper payments before more taxpayer dollars are lost.

We advanced bipartisan language to reinforce the Medicaid Fraud Unit, a program area with historically high fraud risk. And we worked across the aisle to give the Secretary of State new authority and funding to investigate fraudulent business filings.

Nearly 400 state employees have since come forward as whistleblowers. Many are expected to testify before the U.S. Congress this month, where Minnesotans will finally see the full depth of fraud—and how state leaders knew about these problems and allowed them to continue.

I also support any future subpoenas issued by the federal government, including those compelling Governor Walz and others to testify.

Standing Up For You, Fighting Fraud

Click the photo above to hear my House floor remarks on combating fraud.

I personally have introduced many bills and floor amendments that would address fraud, frustratingly, most were shut down by Democrats.

One amendment I offered, as far back as 2021, simply required a state employee who suspects fraud to report it to the Attorney General or their agency commissioner.

Only one Democrat voted with us, but we won't give up. You can watch the short floor debate [here].

Federal Action—Because the Walz Administration Failed to Act

In October, we wrote the White House regarding the fraud occurring in Minnesota. In response, we learned that additional federal investigation and enforcement resources have been deployed to Minnesota. Because of our work, decisive action is finally being taken.

Federal agencies have launched full-scale investigations into Minnesota programs. In addition, federal officials have temporarily forced the Walz Administration to pause or cut off certain programs that spend federal dollars.

These steps are necessary to protect taxpayer dollars and those who need and qualify for services.

While I prefer not to be hyper-partisan, the truth is that if Democrats had taken this fraud seriously instead of dismissing concerns, ignoring ideas, and allowing massive overruns, the budget and deficit would be far smaller than it is today.

A Call to Action

This moment is a reminder of why balanced government, oversight, transparency, and accountability are so critical.

If you are aware of fraud or suspicious activity that should be investigated, speak up. You may share information directly with the U.S. Attorney’s Office, or you can contact me by email. Every credible tip helps protect taxpayer dollars and restore trust.

I will continue fighting for you and that your taxes are used for essential functions and as intended.

Sincerely,

Representative Jon Koznick