Minnesota Governor Tim Walz is under intense scrutiny over a $250 million COVID-19 fraud scandal that has rocked his administration.
Critics argue that the massive loss of funds, originally intended to feed hungry children through the state’s Feeding Our Future program, directly reflects the governor’s leadership, especially as he steps onto the national stage as Kamala Harris’s running mate on the 2024 Democratic ticket.
Between 2022 and 2024, the scandal saw 70 individuals charged in connection with siphoning off a quarter-billion dollars from the Minnesota Department of Education’s (MDE) meal assistance program. The program, federally funded, was designed to provide free meals to children and adults in need, but instead, it became a target for fraudsters who diverted the money towards luxury goods, real estate abroad, and other lavish purchases.
Billy Glahn, an adjunct policy fellow with the Minnesota-based Center of the American Experiment, didn’t mince words when discussing the situation. “At least a quarter billion dollars was stolen by fraudsters,” Glahn stated, pointing to the MDE’s oversight failures as the root of the problem. The question that lingers: How did such a significant amount of money slip through the cracks under the state’s watch?
A report by the Minnesota Office of the Legislative Auditor (OLA) titled “Minnesota Department of Education: Oversight of Feeding Our Future,” released in June, aimed to answer this. Legislative auditor Judy Randall found that, while MDE officials claimed they quickly identified and halted the fraud, the OLA’s investigation suggested that much more could have been done to prevent the massive loss. The report highlighted warning signs that MDE allegedly ignored, indicating that the department was ill-prepared to manage the program effectively.
“MDE officials told us that the department began to have concerns about Feeding Our Future only after the start of the COVID-19 pandemic,” the report notes. However, the OLA believes that these concerns should have been addressed long before the pandemic and before the fraud began.
The criticism doesn’t stop with MDE. Many are pointing fingers directly at Governor Walz, arguing that, as the state’s chief executive, the responsibility ultimately falls on him. “The buck has to stop somewhere,” Glahn emphasized. He pointed out that the officials at MDE, who failed to prevent the fraud, were all appointed by Walz. “These are the folks whom the legislative auditor has documented failed to do their job. So where does the buck stop?”
Glahn expressed a cynical view of the situation, suggesting that the once well-oiled machine of Minnesota’s government has deteriorated under Walz’s leadership. He noted that many of those indicted, along with their spouses and business partners, have made significant campaign contributions to Democrats. This, according to Glahn, raises questions about whether political connections played a role in the MDE’s failure to act decisively against the nonprofits involved in the fraud.
The fraud scheme is a stark reminder of the dangers of a government that prioritizes disbursing funds over ensuring proper oversight. Glahn argues that the focus should have been on policing and regulatory measures to ensure that the funds were used for their intended purpose.
The fallout from the scandal has been severe, with fraud suspects spending the stolen money on everything from residential property to luxury vehicles, jewelry, cryptocurrency, and more. Yet, despite the gravity of the situation, Walz’s office has been slow to respond publicly. In a statement to the Star Tribune, a spokesperson for the governor said, “We appreciate the OLA’s work and often agree with them,” noting that state agencies have implemented many of the OLA’s suggestions. However, the spokesperson also pointed out that some of the recommendations were outdated or irrelevant to the current situation.
Republican voices, including Joe Teirab, a candidate for Minnesota’s 2nd Congressional District, have been vocal in their criticism of Walz. Teirab took to social media to highlight the broader issue of fraud under Walz’s administration, claiming that over half a billion dollars had been lost to fraud across various programs, including child care, unemployment benefits, and Medicaid.
Teirab’s comments echo a growing sentiment among critics that the Feeding Our Future scandal is not an isolated incident but part of a larger pattern of mismanagement. The fact that no state employees have been held accountable for the fraud only adds fuel to the fire.
Adding to the controversy is Walz’s handling of a recent $18 billion budget surplus. Originally intended to be returned to taxpayers, the funds were instead allocated to other state initiatives, leading to accusations of fiscal irresponsibility. House Minority Leader Lisa Demuth criticized the decision, arguing that Minnesota’s government has grown in an unsustainable way under Walz’s leadership.
As the 2024 election approaches, Walz’s record on managing taxpayer funds is likely to be a key issue. With the Feeding Our Future scandal continuing to unfold, the governor’s ability to navigate this crisis will be closely watched by voters and political observers alike.
