Minnesota Governor Tim Walz is once again at the center of a massive fraud scandal—and this time, federal agents are involved. Already under fire for allowing hundreds of millions of taxpayer dollars to be stolen in the infamous Feeding Our Future COVID-era program, Walz is now facing fresh scrutiny after the FBI launched a new investigation into corruption inside the state’s Housing Stabilization Services program.
The program, created in 2020 under Walz’s watch, was supposed to help Minnesota’s most vulnerable citizens—seniors, the disabled, and those struggling with addiction—find stable housing. Instead, according to federal search warrants, it became a gold mine for fraudsters who billed Medicaid for services that were either substandard or outright nonexistent. In some cases, multiple providers billed for the same client on the same day without the client even knowing they had been enrolled.
By mid-July, the FBI and U.S. Attorney’s office executed eight separate search warrants across the state, seeking evidence of the wide-ranging scheme. The scale of the abuse was so staggering that the Minnesota Department of Human Services (DHS) admitted in early August it had no choice but to shut down the entire program.
Republicans in Minnesota say this is no isolated incident—it’s part of a disturbing pattern of incompetence and corruption under Walz’s leadership. Rep. Kristin Robbins (R-Maple Grove), Chair of the House Fraud and State Agency Oversight Committee, didn’t mince words.
“The FBI raids involving the Housing Stabilization Services program demonstrate yet another enormous failure by the Walz Administration to protect taxpayers and ensure that vulnerable Minnesotans get the services they need,” Robbins said.
She went on to point out that this mirrors the exact same failures that plagued Feeding Our Future, where fraudsters stole more than $250 million meant to feed hungry children during the pandemic.
“This follows the same pattern we’ve been warning about for months,” Robbins continued. “Minnesota expands unregulated Medicaid services, and fraudsters exploit the lax oversight to steal millions from taxpayers and the poor.”
What began as a modest program expected to cost $2.6 million annually ballooned into a bloated \$100 million bureaucracy riddled with fraud. Robbins noted that DHS’s decision to shutter the program outright was a “stunning admission” of its complete failure.
“This is the latest in a growing list of fraud schemes uncovered under the Walz Administration, which has lost hundreds of millions to fraud to date. Unfortunately, this is probably just the tip of the iceberg,” she warned.
A Minnesota Housing Program has been caught stealing more than $100 million dollars and is being shut down
“The FBI says those companies claim to be helping vulnerable Minnesotans find homes, but in reality, clients received little or no actual services or assistance and the… pic.twitter.com/EYPhfcOMCE
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Walz has yet to offer a serious explanation for how his administration allowed not one but two massive fraud scandals to run wild under his watch. Instead, the responsibility seems to keep shifting, while taxpayers are left holding the bag.
The pattern is undeniable: every time government grows under Walz, so does the waste, corruption, and incompetence. Programs designed to help Minnesota’s most vulnerable are instead enriching fraudsters, and Democrats in charge look the other way until it’s too late.
For Minnesotans, the message is clear—Gov. Walz can’t manage taxpayer money, can’t secure basic oversight, and can’t be trusted to keep public programs free from corruption.
And as Rep. Robbins put it bluntly: “Minnesotans deserve better.”
