Walz Claims Trump Immigration Actions Hindered Minnesota Fraud Investigations

Minnesota’s top officials appeared before a U.S. House committee Wednesday to address accusations that they have failed to adequately combat fraud, with Governor Tim Walz arguing that federal immigration enforcement operations have disrupted their investigative capabilities.

During the House Oversight Committee hearing, Republican lawmakers criticized Gov. Walz and Attorney General Keith Ellison for what they characterized as insufficient action against government program fraud, claiming the officials prioritized political considerations over stopping financial abuse rather than halting questionable payments.

Committee Chair James Comer, a Kentucky Republican, directly challenged the Minnesota officials’ stewardship of public funds. “You have not been good stewards of the taxpayer dollars,” Comer stated. “And the Democratic position is keep the money flowing. The American taxpayers have had enough.”

Walz expressed willingness to collaborate with federal authorities on fraud investigations but emphasized that immigration enforcement activities were creating obstacles to those efforts. “The people of Minnesota have been singled out and targeted for political retribution at an unparalleled scale,” Walz testified. “We’re going to prosecute, as we have, every single person that’s involved in fraud, but we can’t do it alone.”

Both Minnesota officials justified their anti-fraud work while attempting to redirect the hearing’s attention to the deployment of 3,000 federal agents to Minnesota that commenced in December. The Trump administration has pointed to fraud concerns as one reason for the enforcement operation. Homeland Security Secretary Kristi Noem revealed Tuesday that approximately 650 investigators continue working in Minnesota as part of an expanded fraud investigation.

Attorney General Ellison criticized the federal operation’s effectiveness in addressing fraud. “Operation Metro Surge did nothing to address fraud in our state,” Ellison testified. “It harmed our economy and it scarred our people and it dealt a devastating blow to fraud enforcement in Minnesota.”

Ellison highlighted staffing problems at the U.S. Attorney’s Office in Minnesota, where multiple lawyers have resigned, leaving remaining staff “drowning in immigration-related petitions” instead of pursuing fraud prosecutions. The U.S. attorney for Minnesota faced a contempt hearing Tuesday regarding Immigration and Customs Enforcement’s failure to return detainees’ personal belongings.

The attorney general defended his office’s record, stating it has “punched above our weight” by securing 300 Medicaid fraud convictions and recovering over $80 million for taxpayers.

Louisiana Republican Rep. Clay Higgins demanded Ellison’s resignation, alleging he has failed to lead investigations into criminal fraud activity.

The hearing occurred after Vice President JD Vance announced last week that the Trump administration would “temporarily halt” $243 million in Minnesota Medicaid funding due to fraud concerns, describing it as part of an intensive campaign against public fund misuse. Minnesota filed a lawsuit Monday to prevent the funding freeze, cautioning that healthcare services for low-income families might face cuts if the money is withheld.

Comer accused Walz Wednesday of continuing Medicaid payments despite being aware of fraud because he “didn’t want to rock the boat.”

Republican committee members challenged Walz about his knowledge of fraud in the $250 million Feeding Our Future scandal, accusing him of delaying action to shield the Somali American community. Ohio Republican Rep. Jim Jordan questioned Walz about the ethnicity of those indicted in the case.

“Their ethnicity is not my concern,” Walz responded.

According to the U.S. Attorney’s Office for Minnesota, Somali Americans represent 82 of the 92 defendants charged in the Feeding Our Future case.

California Democratic Rep. Robert Garcia attempted to shift focus back to immigration enforcement by displaying photographs of children detained by federal officers and the bloodied car seat of Renee Good, who was fatally shot by an officer. Federal agents also killed Minnesota resident Alex Pretti, who had been recording enforcement activities.

“This violence does not make us safer,” Garcia declared. “It does not address fraud, waste and abuse.”