Minnesota Governor Tim Walz faces a political crisis after state employees publicly accused him of covering up a billion-dollar pandemic fraud scheme, retaliating against whistleblowers, and weakening oversight as investigations continue.
A New York Times investigation revealed over $1 billion in pandemic-era fraud in Minnesota, involving shell companies exploiting child-feeding and family-assistance programs, with U.S. Attorney Joseph Thompson warning, “We’re losing our way of life in Minnesota in a very real way,” and the Inspector General adding that “Fraud is the business model.”
Regulators hesitated to act amid post-George Floyd racial-tension fears, while Governor Tim Walz acknowledged prioritizing speed and “generosity” over strict oversight, allowing the schemes to expand. The scandal intensified when state Human Services employees seized the official account, declaring, “Tim Walz is 100% responsible for the massive fraud in Minnesota,” accusing his appointees of “monitoring, threats, and retaliation,” blocking audits, and weakening the Legislative Auditor. With over 22 million views and calls for Walz to resign, Republicans have made the crisis central to the 2026 race. Investigations continue as Minnesota confronts severe institutional damage and a collapse of public trust.