Overview
- The House Energy & Commerce Committee launched a broad investigation of alleged fraud in Minnesota’s social services and Medicaid-related programs and requested audits, provider records, fraud referrals, and internal communications from Gov. Tim Walz and state officials.
- Committee members cited Centers for Medicare & Medicaid Services findings that Minnesota violated federal oversight rules and warned that CMS could withhold Medicaid funds until the state implements a corrective action plan.
- Committee staff took part in recent briefings with CMS and the Justice Department as part of the inquiry, signaling coordination between congressional oversight and federal agencies.
- The Justice Department issued grand jury subpoenas to Walz, Minneapolis Mayor Jacob Frey, Attorney General Keith Ellison, and others in a separate probe into whether officials impeded federal immigration enforcement; those leaders denounced the move as political.
- Federal scrutiny intensified after investigator Nick Shirley’s viral videos alleging vacant or fake providers; he is scheduled to testify before a House Judiciary subcommittee, and HHS has already paused federal daycare subsidy payments to Minnesota.