Minnesota Governor Tim Walz is responding to growing scrutiny following a recent FBI raid targeting the state’s Housing Stabilization Services program, which was designed to support vulnerable populations—including older adults and those with disabilities, substance use disorders, and mental illness—in securing housing. Federal agents executed search warrants at eight locations across the Twin Cities, uncovering evidence of fraudulent billing practices by five providers who allegedly charged for services they never delivered. In a statement, Walz affirmed his commitment to accountability, stating, “If you’re going to commit these crimes in Minnesota, you are going to get caught.”
Governor Walz acknowledged the system’s vulnerability to abuse but emphasized recent steps taken by his administration to improve oversight and detection of Medicaid fraud. “You’re always gonna find people trying to cheat the system,” he told WCCO, noting that the latest legislative session equipped the state with new oversight tools and appointed a new Inspector General. However, Walz also expressed frustration that additional resources, particularly AI-driven tools, were not approved, which he believes could further bolster fraud prevention efforts.
Acting U.S. Attorney Joe Thompson echoed the seriousness of the situation, stating Minnesota faces a “serious fraud problem.” He pointed out that the state’s generosity in social programs, such as housing and food assistance, makes it more susceptible to exploitation without strong oversight mechanisms. The targeted locations in St. Paul, Roseville, Blaine, Little Canada, and Woodbury were flagged in warrants describing the housing program as “extremely vulnerable to fraud,” amplifying long-standing concerns about systemic weaknesses in program administration.
Republican lawmakers, already critical of the Walz administration following the massive Feeding Our Future fraud case, seized on the new investigation as further evidence of mismanagement. Rep. Kristin Robbins (R-Maple Grove), chair of the House Fraud and State Agency Oversight Committee, labeled the case an “enormous failure,” accusing the administration of expanding Medicaid services without implementing proper safeguards. “Fraudsters jump in to exploit lax oversight by DHS to steal millions from taxpayers and the poor,” Robbins said, calling for a comprehensive overhaul of fraud prevention within state-run programs.
Separately, in a moment of unity following the tragic school shooting at Annunciation Catholic School in Minneapolis, Walz publicly thanked former President Donald Trump for offering federal support. Speaking at a press conference, Walz described the heartbreaking scene at the school and the grief shared by the community. He acknowledged a personal call from Trump, who, along with his leadership team, expressed condolences and pledged assistance. Walz’s remarks, notably gracious toward the former president despite their political differences, reflected a moment of bipartisan solidarity in the face of tragedy that left two children and the shooter dead, and 17 others injured.
