In addition to facing continual scrutiny over the massive, hundreds of millions of dollars’ worth of fraud that his administration seemingly allowed to happen with the “Feeding Our Future” program, Minnesota Governor Tim Walz is facing more scrutiny as a new Federal Bureau of Investigation investigation into yet more state-level fraud is kicking into gear.

As background, Gov. Walz got caught in a massive Covid-era fraud scandal in September of 2024, when he was hammered with a subpoena regarding the “Feeding Our Future” program that was pilfered of hundreds of millions of dollars by state-level fraudsters. That issue has remained a persistent problem well into 2025.

Now, Gov. Walz is also facing scrutiny over the since-shut-down Minnesota Housing Stabilization Services program, a beacon of corruption so vast that the Minnesota Department of Human Services announced in early August that it would be totally shutting it down.

At the time the FBI investigation began and raids to find evidence occurred alongside it, back in mid-July, Rep. Kristin Robbins (R-Maple Grove), Chair of the House Fraud and State Agency Oversight Committee, released a statement commenting on the massive alleged fraud within Minnesota’s Housing Stabilization Services program, tying the matter to Gov. Walz.

Beginning, the state representative highlighted the Walz administration’s failure to deal with massive corruption, saying, “The eight search warrants carried out by the FBI and the US Attorney’s office involving the Housing Stabilization Services program demonstrates yet another enormous failure by the Walz Administration to protect taxpayers and ensure that vulnerable Minnesotans get the services they need.”

Continuing, she argued that the Walz Administration let fraudsters steal from the program, saying, “This follows the same pattern the Fraud Committee has been highlighting for months: Minnesota expands unregulated Medicaid services and fraudsters jump in to exploit lax oversight by DHS to steal millions from taxpayers and the poor.”

Describing the massive level of fraud that occurred here, she then said, “Minnesota’s Housing Stabilization Services is a relatively new Medicaid expansion program created in 2020 to help senior citizens and people with disabilities, including mental illness and substance use disorder, find stable housing. As alleged in the search warrants, five different providers were fraudulently billing Medicaid for sub-standard or non-existent services. In some cases, different providers were billing for the same clients on the same days, without the clients’ knowledge that they were enrolled in the program.”

Then, tying things back to the Walz Administration, she said, “This is the latest in a growing list of fraud schemes uncovered in Minnesota under the Walz Administration, which has lost hundreds of millions of dollars to fraud to date. Unfortunately, this is probably still the tip of the iceberg. Minnesotans deserve better.”

In a later statement that came in office, the state representative commented on the program’s shutdown over the fraud within it. She said, “The Department of Human Services’ decision to terminate the Housing Stabilization Services program is a stunning admission of just how deeply broken this program has become under the Walz administration’s watch. This was a program initially expected to cost taxpayers just $2.6 million a year, yet it ballooned to over $100 million, with fraud so rampant that the agency now admits it cannot guarantee basic program integrity.”

Continuing and hammering the state-level bureaucracy for its failures, she said, “Since the Fraud Committee started hearings last winter, I’ve raised serious concerns about DHS’s lack of internal controls and its repeated failure to provide basic due diligence and oversight. This decision only strengthens the need for a federal audit of DHS. We sounded the alarm early, and sadly, those warnings were not heeded until millions had already been stolen. The shutdown of this program confirms what we feared all along: this fraud goes far deeper than the few raids and arrests made public so far. DHS has failed in its duty to protect taxpayers and vulnerable Minnesotans, and there must be full accountability for the mismanagement that allowed this to happen.”

Watch local media comment on the massive scale of the fraud, an ongoing issue that has lasted into mid-August, here: