The Minnesota fraud scandal just keeps getting worse.
Federal investigators are uncovering more corruption every single day.
And a Congressional probe just exposed one corrupt secret about Tim Walz's Minnesota.
Democrat Governor Tim Walz spent years presiding over what federal prosecutors now call the largest pandemic relief fraud in American history.
The Feeding Our Future nonprofit scam alone ripped off $250 million in taxpayer money meant to feed children, with 78 defendants charged.
But federal prosecutors announced last week the total fraud could hit $9 billion across 14 different Minnesota state programs.
Now Congress wants answers about how this happened on Walz's watch.
Congress demands answers on pandemic fraud scheme
House Small Business Committee Chairman Roger Williams sent a letter to Small Business Administration chief Kelly Loeffler this week demanding records on federal pandemic loans to Minnesota entities caught up in the fraud scandal.
The Texas Republican wants to know how hundreds of millions in PPP and EIDL loans flowed to fraudsters while Walz's administration looked the other way.
"The SBA's COVID lending programs were created to keep small businesses afloat during an unprecedented crisis, not to subsidize fraud," Williams told Fox News Digital.
The Feeding Our Future scandal revealed how easy it was to game the system under Walz.
The nonprofit claimed it served 91 million meals to children during COVID, but federal prosecutors proved most of those meals never existed.
Fraudsters used the stolen money to buy luxury cars, lakefront property, and vacation homes in the Maldives.
"Under the Biden-Harris administration, weak oversight and reckless decision-making allowed bad actors to exploit these programs and steal hundreds of millions in taxpayer dollars," Williams stated.
Williams specifically cited how Aimee Bock – the Feeding Our Future founder convicted of running the scheme – wielded accusations of racism to silence state regulators.
Minnesota Department of Education officials backed down when Bock accused them of racial discrimination for scrutinizing her claims.
A judge even ordered the state to keep payments flowing during Bock's lawsuit.
That ruling let the fraud explode to unprecedented levels.
Fraud network infiltrated multiple federal programs
Loeffler's investigation already uncovered that Feeding Our Future defendants also received $2.5 million in PPP and EIDL loans on top of their meal program scam.
The Small Business Administration is now investigating every individual and organization indicted in Minnesota's fraud scandals.
Williams wants to know what communications happened between the SBA and Walz's office during this time.
Did state officials warn the feds about suspicious activity?
Or did Walz's administration help keep federal dollars flowing to criminals?
The House committee requested detailed records on loan amounts, disbursement dates, forgiveness decisions, and internal SBA communications.
They also want all documents between the SBA and Minnesota state agencies during the Biden-Harris years.
The fraud went far beyond Feeding Our Future.
Federal prosecutors charged defendants in a $104 million housing stabilization fraud where criminals claimed they were helping homeless people find housing but just collected government checks for services never provided.
Another scheme involved autism treatment centers that recruited children from Minneapolis's Somali community, falsely certified kids for autism treatment, and paid parents kickbacks, with one provider allegedly stealing $14 million.
Federal prosecutors now believe criminals stole at least half the money from certain Medicaid programs.
Assistant U.S. Attorney Joe Thompson called Minnesota a magnet for "fraud tourism" where criminals travel from other states to exploit weak oversight.
Two Philadelphia men heard Minnesota's Housing Stabilization Services program was "easy money."
They flew to Minnesota, enrolled their companies, flew back to Philadelphia, and submitted $3.5 million in fraudulent claims.
Trump administration cracks down on welfare state failures
Loeffler already halted more than $5.5 million in annual SBA support to Minnesota resource partners.
She told Walz his state made Minnesota the "epicenter" of pandemic fraud through "socialist policies deliberately designed to pump out welfare funding without oversight or accountability."
The Centers for Medicare & Medicaid Services threatened to cut off all Minnesota funding unless officials comply with corrective action requirements.
The Treasury Department and IRS launched probes into allegations that stolen welfare money got transferred to Somalia where al-Shabaab terrorists allegedly took a cut.
Treasury Secretary Scott Bessent imposed new restrictions on money transfers from the United States to Somalia.
Walz tried spinning the investigations as proof he's cracking down on fraud.
But hundreds of Minnesota Department of Human Services employees accused Walz of being "100% responsible" for the fraud.
Whistleblowers said state officials punished them for raising alarms about suspicious activity.
House Oversight Committee Chairman James Comer is investigating whether Walz's administration destroyed evidence and retaliated against whistleblowers.
Congressional Republicans want documents showing exactly what Walz knew and when he knew it.
The deadline for those documents passed weeks ago.
Williams gave Loeffler until January 12 to provide records his committee requested.
Minnesota's fraud scandal proves what happens when Democrats prioritize political correctness over protecting taxpayer dollars.
¹ Andrew Mark Miller, "Lawmakers probe SBA loans linked to Minnesota's $9B fraud scandal: 'Reckless decision making,'" Fox News, December 23, 2025.
² Ibid.
³ Ibid.
⁴ Ibid.
⁵ Ernesto Londoño, "How Fraud Swamped Minnesota's Social Services System on Tim Walz's Watch," The New York Times, November 30, 2025.
⁶ Alyssa Chen and Michelle Griffith, "U.S. Attorney: Fraud likely exceeds $9 billion in Minnesota-run Medicaid services," Minnesota Reformer, December 18, 2025.
⁷ Ibid.
⁸ Miller, Fox News.
⁹ Kelly Loeffler, Letter to Governor Tim Walz, U.S. Small Business Administration, December 17, 2025.
¹⁰ Chen and Griffith, Minnesota Reformer.
