Walz Administration Claims $217M in Fraud After Prosecutor Pointed to Billions

Minnesota Gov. Tim Walz has released a website that claims there isn’t widespread taxpayer fraud in the state. 

The website cites a Star Tribune report, a newspaper whose publisher and CEO is Steve Grove, a former Walz appointee. 

That report claimed criminals had committed only $217 million in social services fraud since Sept. 2022, while a federal prosecutor put the figure at around $9 billion across 14 social programs, according to U.S. Assistant Attorney Joe Thompson.

The Star Tribune is one of the many media companies in Minnesota that tried to ignore up to billions of dollars in fraud exposed by Nick Shirley, a journalist in his 20s with a camera crew, who broke what may be the biggest story of 2025. 

The website says: “Fraud is a nationwide challenge and is not unique to Minnesota. Higher visibility does not equal higher fraud. Targeted misinformation thrust Minnesota into the spotlight, but we are committed to leading the nation in Medicaid program integrity and fighting fraud.”

That website claimed that criminals had committed only $217 million in social services fraud since 2022, while a federal prosecutor estimates the fraud at around $9 billion. Criminals allegedly stole from programs meant to feed hungry kids, help kids with autism, and help people fund housing. 

This week, two Pennsylvania men pleaded guilty to defrauding Minnesota’s Housing Stabilization Services program of about $3.5 million. 

They allegedly traveled from Pennsylvania to Minneapolis to defraud a housing program of $3.5 million by using artificial intelligence to create fake records, Townhall reported. 

State Senate Republican Leader Mark Johnson, R-East Grand Forks, slammed Walz for obfuscating fraud rather than detailing it. 

“Governor Walz can try to deny the fraud, call it ‘make believe,’ or minimize it as no different than other states all he wants,” Johnson said in a statement to reporters. “Minnesotans are seeing with their own eyes the reality that vulnerable people are being taken advantage of while fraudsters line their own pockets with taxpayers’ money. The consequences of fraud are not just expensive and wasteful; they are heartbreaking.

 “Every individual and family getting services should have full confidence that the government is stopping bad actors, rooting out fake billing and scam companies, and prosecuting fraudsters to the full extent of the law. Democrats have proven they are simply not interested in using their power to hold their leaders accountable. Senate Republicans will hold Walz and his administration responsible for these failures.”

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Minnesota Gov. Tim Walz has released a website that claims there isn’t widespread taxpayer fraud in the state. 

The website cites a Star Tribune report, a newspaper whose publisher and CEO is Steve Grove, a former Walz appointee. 

That report claimed criminals had committed only $217 million in social services fraud since Sept. 2022, while a federal prosecutor put the figure at around $9 billion across 14 social programs, according to U.S. Assistant Attorney Joe Thompson.

The Star Tribune is one of the many media companies in Minnesota that tried to ignore up to billions of dollars in fraud exposed by Nick Shirley, a journalist in his 20s with a camera crew, who broke what may be the biggest story of 2025. 

The website says: “Fraud is a nationwide challenge and is not unique to Minnesota. Higher visibility does not equal higher fraud. Targeted misinformation thrust Minnesota into the spotlight, but we are committed to leading the nation in Medicaid program integrity and fighting fraud.”

That website claimed that criminals had committed only $217 million in social services fraud since 2022, while a federal prosecutor estimates the fraud at around $9 billion. Criminals allegedly stole from programs meant to feed hungry kids, help kids with autism, and help people fund housing. 

This week, two Pennsylvania men pleaded guilty to defrauding Minnesota’s Housing Stabilization Services program of about $3.5 million. 

They allegedly traveled from Pennsylvania to Minneapolis to defraud a housing program of $3.5 million by using artificial intelligence to create fake records, Townhall reported. 

State Senate Republican Leader Mark Johnson, R-East Grand Forks, slammed Walz for obfuscating fraud rather than detailing it. 

“Governor Walz can try to deny the fraud, call it ‘make believe,’ or minimize it as no different than other states all he wants,” Johnson said in a statement to reporters. “Minnesotans are seeing with their own eyes the reality that vulnerable people are being taken advantage of while fraudsters line their own pockets with taxpayers’ money. The consequences of fraud are not just expensive and wasteful; they are heartbreaking.

 “Every individual and family getting services should have full confidence that the government is stopping bad actors, rooting out fake billing and scam companies, and prosecuting fraudsters to the full extent of the law. Democrats have proven they are simply not interested in using their power to hold their leaders accountable. Senate Republicans will hold Walz and his administration responsible for these failures.”

Editor’s Note: Do you enjoy Townhall’s conservative reporting that takes on the radical left and woke media? Support our work so that we can continue to bring you the truth.

Join Townhall VIP and use promo code FIGHT to receive 60% off your membership.