By The House Oversight and Government Reform Committee will open its first hearing next week into a sweeping fraud scheme involving Minnesota social services programs, Chairman James Comer (R-Ky.) announced Wednesday.
The January 7 hearing, titled “Oversight of Fraud and Misuse of Federal Funds in Minnesota: Part I,” will examine allegations that more than $358 million in federal funds meant for child nutrition, housing stabilization, and autism treatment were stolen or misused.
The inquiry gained national attention after reporting by Fox News, amplified online by political commentator Stephen L. Miller, outlined claims that the fraud involved networks tied largely to Minnesota’s Somali community. Authorities allege that some of the money was diverted overseas, with investigators examining potential links to terrorist organizations including Al-Shabaab and ISIS.
Federal officials say concerns about the programs date back years. State authorities were alerted as early as 2019, according to investigators, but large-scale prosecutions accelerated only recently. FBI Director Kash Patel has confirmed that additional federal resources were sent to Minnesota as the scope of the scheme became clear. The Justice Department is now pursuing multiple criminal cases tied to the alleged fraud.
🚨 We're bringing in Tim Walz to answer for the massive fraud in Minnesota.
Two hearings. Answers. Accountability.
Jan 7 → MN State Reps
Feb 10 → Tim Walz and AG Keith EllisonWe will expose failures and identify solutions so we can legislate so this DOES NOT happen again. pic.twitter.com/zJqnMYFoSP
— Oversight Committee (@GOPoversight) December 31, 2025
The probe has expanded under the leadership of the FBI. Republican leaders, including Rep. Tom Emmer of Minnesota and Vice President JD Vance, have publicly demanded accountability, arguing that warning signs were ignored while losses mounted.
Central to the committee’s scrutiny is Democratic Gov. Tim Walz, who served as his party’s vice presidential nominee in the 2024 election. Critics contend that Walz’s administration failed to intervene decisively despite repeated red flags. Republicans have also pointed to recordings in which Walz voiced support for nonprofits later implicated in the investigation, some of which had connections to political donors.
Comer said Congress has an obligation to press for answers alongside ongoing criminal cases. “The U.S. Department of Justice is actively investigating, prosecuting, and charging fraudsters who have stolen billions from taxpayers,” he said. “Congress has a duty to conduct rigorous oversight.”
As part of the inquiry, the committee has requested Suspicious Activity Reports from the Treasury Department and scheduled transcribed interviews with Minnesota state officials to assess oversight failures.
Pressure on Walz has intensified in recent days, with Newsweek reporting calls for his resignation from political figures and criticism from within Minnesota’s Department of Human Services. The governor has defended his record, saying he has “worked for years to crack down on fraud,” though his office has not yet detailed its response to the latest allegations.
Beyond state politics, the case has raised national security concerns. Federal officials say evidence of funds flowing overseas has prompted coordination with U.S. Africa Command and Somali authorities to disrupt financial networks linked to extremist groups.
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