House Oversight and Accountability Committee Chairman James Comer is now reportedly opening a sweeping congressional investigation into what Republicans describe as systemic fraud and widespread misuse of federal taxpayer dollars in Minnesota’s social services programs, setting the stage for a major accountability showdown early next year.
The investigation is scheduled to formally begin on Jan. 7, 2026, with an initial hearing featuring testimony from Minnesota state lawmakers who say their warnings were repeatedly ignored. Republican Reps. Kristin Robbins, Walter Hudson and Marion Rarick are expected to testify that they raised red flags about fiscal misconduct long before the alleged losses ballooned, only to be brushed aside by state leadership.
At the center of the probe are the administrations of Democratic Gov. Tim Walz and Attorney General Keith Ellison. Comer has accused top Minnesota officials of either being “asleep at the wheel or complicit” as billions of dollars in public funds allegedly vanished on their watch. Both Walz and Ellison have been formally invited to testify before the committee on Feb. 10, 2026.
To support the investigation, the Oversight Committee has requested Suspicious Activity Reports from the U.S. Department of the Treasury and scheduled transcribed interviews with a range of current and former state officials. Comer has framed the inquiry as a necessary step to uncover how what he has called a massive “heist” of taxpayer money was allowed to occur.
The congressional probe coincides with a broader federal crackdown spearheaded by the Trump administration. Small Business Administration Administrator Kelly Loeffler recently announced the suspension of 6,900 Minnesota borrowers connected to roughly $400 million in potentially fraudulent pandemic-era loans. In another major move, the Department of Health and Human Services froze all childcare payments to Minnesota following allegations of widespread fraud at daycare centers across the state.
Federal investigators are also examining other high-profile cases, including alleged schemes involving fraudulent autism diagnoses and the now-infamous Feeding Our Future program, which prosecutors say diverted money meant to feed hungry children into improper hands. Together, the cases paint a picture Republicans say reflects a breakdown in oversight and accountability at the state level.
Critics of Minnesota’s leadership, including House Majority Whip Tom Emmer, allege that state officials deliberately slowed or blocked investigations to preserve political alliances, particularly within certain immigrant communities. According to reports cited by Republicans, Minnesota’s social services programs may have lost as much as $9 billion to fraud since 2018.
Gov. Walz has pushed back, defending his administration’s record and dismissing the investigations as politically motivated efforts designed to justify cuts to federal funding. Comer, however, has rejected that argument, saying Congress has an obligation to follow the money and protect taxpayers.
The Oversight Committee says its goal is not only to expose how alleged criminal actors exploited taxpayer-funded programs, but also to identify the systemic failures that made such abuse possible. Comer has vowed the investigation will lead to concrete reforms and stronger safeguards to prevent future theft, arguing that accountability is non-negotiable when billions in public funds are at stake.
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