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Walz and Ellison Testify as House Report Alleges Years of Inaction on Minnesota Fraud

Minnesota is suing to reverse a federal pause on roughly $243 to $260 million in Medicaid payments tied to fraud concerns.

Overview

  • Hours before the hearing, Oversight Republicans released an interim report claiming Gov. Tim Walz and AG Keith Ellison knew of credible fraud warnings since 2019–2020 and retaliated against whistleblowers.
  • Walz and Ellison rejected the allegations, citing hundreds of Medicaid fraud convictions and recoveries while arguing a federal immigration enforcement surge in Minnesota has hampered fraud prosecutions.
  • The Trump administration last week temporarily halted about $243–$260 million in Medicaid funding to Minnesota, and the state has filed suit seeking a court order to restore the payments.
  • Federal prosecutors have charged at least 92 people, including in the $250 million Feeding Our Future case, while overall loss estimates remain disputed from hundreds of millions to as high as $9 billion.
  • Republicans pressed Walz on continued payments to Feeding Our Future and on whistleblower claims, as Democrats focused on the impact of the enforcement surge and the politics surrounding the probe.