Governor Tim Walz’s two terms in office have been overshadowed by a series of crises that critics say were worsened by his inaction or mismanagement. These include the 2020 riots—dubbed the “Summer of Love”—during which large sections of Minneapolis were left to burn before he finally called in the National Guard. His administration also pushed controversial gender-policy legislation, including measures involving school facilities and parental rights, policies critics argue destabilized families and communities.
Amid this backdrop, Minnesota also faced a tragic and politically charged incident: a trans-identifying male opened fire inside Annunciation Catholic Church, killing two people and injuring 17. At the same time, accusations of widespread Somali community fraud continued to surface, only to be dismissed for years as exaggerated or politically motivated. Yet conservative warnings persisted, alleging that Walz’s administration either failed to act or actively punished those who tried to expose the corruption.
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The New York Times has now confirmed what many Minnesota conservatives have claimed for years. In a major report titled How Fraud Swamped Minnesota’s Social Services System on Tim Walz’s Watch, the paper laid out how systemic abuse of state and federal programs flourished unchecked. The Times concluded that Walz did not merely overlook warning signs—he sidelined or shut down whistleblowers and protected the political networks that benefited from the fraud.
Walz, for his part, has defended himself by claiming his administration may have erred on the side of “generosity” during the pandemic in an effort to keep Minnesotans housed and fed. He argued that programs designed to help people inevitably attract criminals who exploit loopholes. He also rejected the idea that concerns over racism hindered enforcement efforts, insisting decisions were driven by compassion, not political pressure.
Still, the governor has now taken a different tack. With a third-term bid approaching, he has announced a new anti-fraud task force, expanded information-sharing between agencies, and unveiled plans to use artificial intelligence to detect suspicious billing practices. Walz insists that Minnesota is sending a clear message: anyone who steals public money will face prison.
But these assurances may not be enough to salvage Walz’s political future. With his vice-presidential ambitions over, the governor’s mansion remains his last major foothold. The fraud scandal threatens that position, especially now that the FBI has launched an investigation. Republican challenger Lisa Demuth has seized on the issue, accusing Walz of raising taxes while allowing fraud to “run wild.”
In the wake of the allegations, Walz’s administration has begun shutting down the state’s housing program entirely, acknowledging it had become saturated with abuse. The state has also hired an independent auditor to examine 14 additional Medicaid-funded programs now considered at high risk for fraud. These moves, critics argue, only came after national media began scrutinizing the scandal.
Inside Minnesota’s Department of Human Services, employees—operating under the name DHS-E—are publicly challenging Walz’s narrative. In a series of posts on X, they thanked The New York Times for finally exposing what local media ignored, but also detailed what they describe as years of retaliation, intimidation, and silencing under Walz’s leadership. According to DHS-E, whistleblowers were monitored, reassigned, threatened, and smeared for attempting to report wrongdoing.
The group further alleges that Walz weakened the Office of the Legislative Auditor, enabling agencies to ignore audit findings. They claim DFL lawmakers deflected all attempts to address fraud, while outlets like WCCO and MPR refused to cover the story out of political loyalty. Meanwhile, unqualified leadership—appointed through political connections rather than merit—ran dysfunctional agencies that created an environment ripe for corruption.
According to DHS-E, employees personally witnessed extensive fraud but were ordered to stay quiet, sometimes under threat. Leadership allegedly refused to act because they feared appearing discriminatory toward certain communities involved in the schemes. The department claims no agency head—Shireen Gandhi, Jess Geil, Jodi Harpstead, Natasha Merz, Eric Grumdahl, or others—has been held accountable. They conclude that Walz himself built and maintained a system of agencies, media allies, and political networks that tolerated and enabled fraud in exchange for political protection and institutional power.
