Minnesota Gov. Tim Walz and Attorney General Keith Ellison are testifying Wednesday morning at a House Oversight Committee hearing on fraud and the “misuse” of federal funds in the state.

Lawmakers will also hear from a clergy member about the impact of Operation Metro Surge.

The hearing comes after Republicans launched an investigation into how Minnesota handled taxpayer dollars. Committee Chairman James Comer, R-Kentucky, says testimony and documents obtained by the committee show Walz and Ellison “lied about their knowledge of the fraud, and retaliated against employees who dared to raise concerns.” 

The report claims both Walz and Ellison’s offices were aware of “credible fraud concerns” in the state’s social services programs as early as 2019, but “meaningful corrective action was delayed or avoided.” 

It also alleges whistleblowers experienced retaliation for reporting fraud, and accuses Walz of hiring private investigators or law firms to “silence staff.”

Regarding the $250 million Feeding Our Future scheme, the report alleges that the Minnesota Department of Education continued payments voluntarily despite “identifying serious program deficiencies.” The committee also alleges the court never directed state officials to continue payments to Feeding Our Future or any other “fraudulent providers,” as the governor has previously claimed.

Former U.S. Assistant U.S. Attorney Joe Thompson in December said the total amount of fraud in Minnesota’s Medicaid programs could be $9 billion or more. Walz called Thompson’s statement “sensationalism” and said that it doesn’t “help” the state tackle the problem that he vowed to fix.  

GOP Minnesota House Majority Leader Harry Niska says he wants to hear accountability from Walz and Ellison.

“If the governor respects Congress, I hope he is going to be forthcoming tomorrow,” Niska said. 

Walz defended his administration, accusing President Trump of “politicizing the issue to defund programs that help Minnesotans.”

When asked about Wednesday’s hearing, a spokesperson for Walz’s office said, “The Governor takes Congress seriously, and his hope is that Congress will take Congress seriously.”

Ellison’s office says “he [Ellison] will encourage members of the committee to set partisan politics aside and work across party lines to fight fraud and protect Medicaid.”

Lawmakers will also hear from Rev. Mariah Tollgaard, called on by Democrats as a witness. She will focus on the impacts of Operation Metro Surge. 

“Fraud is being used as a pretext to scapegoat the most vulnerable among us and justification for the violent and cruel actions of Operation Metro Surge,” she said. 

She was one of many faith leaders arrested while protesting. She said that she felt it was her religious duty as a Christian to stand up for her neighbors amidst what she described as a federal occupation of her state.

Walz, Ellison offer opening statements

Walz, in his opening statement to the committee, touted Minnesota as one of the best states for families and best to live in overall. 

“Under my leadership, Minnesota has dedicated its resources to ensuring that all Minnesotans can live dignified and full lives with access to top-notch public schools, quality health care, good jobs,” Walz said.

He then turned his attention to the issue at hand, though denied the state has ignored or covered up fraud.

“Although Minnesota’s programs have overwhelmingly achieved their intended purpose, they’re not immune from fraud. I’ll be the first to acknowledge that,” he said. “But let me be clear: In Minnesota, if you defraud public programs, if you steal taxpayer money, we’ll find you, we’ll prosecute you, we’ll convict you and we’ll throw you in jail.”

Ellison said he has “worked every day as attorney general to hold fraudsters accountable” and is “proud” of his record, boasting about 300 Medicaid fraud convictions and $80 million recovered for taxpayers.

Both Walz and Ellison spoke out against Operation Metro Surge in their opening statements. Walz called it “political retribution at an unparalleled scale.”

“Operation Metro Surge did nothing to address fraud in our state,” Ellison said. “It harmed our economy, it scarred our people and it dealt a devastating blow to fraud enforcement in Minnesota.”

House Majority Whip Tom Emmer demands “direct and truthful answers”

Rep. Tom Emmer, the House majority whip from Minnesota, spent most of his time at the hearing peppering Ellison with questions. He asked Ellison about an alleged meeting between the attorney general and “Somali fraudsters” in December 2021 and whether there is “an organized crime ring operating in Minnesota.”

Emmer left little room for Ellison to answer, repeatedly reclaiming his time as Ellison attempted to speak.

“We are left with two questions,” Emmer said as he wrapped his time. “One, what did Gov. Walz and Keith Ellison know about the fraud, and two, when did they actually know it? I would suggest that if they do not give direct and truthful answers to both these questions at this hearing, then they both need to be put under oath in a deposition.”