Vice President Vance escalated the Trump administration’s anti-fraud campaign late Monday by referring Minnesota Governor Tim Walz and state Attorney General Keith Ellison to the Justice Department for a criminal fraud investigation. The move follows a House Oversight Committee report alleging the two Democrats were aware of systemic fraud that led to the loss or endangerment of hundreds of millions of dollars in federal funds.
The report, released earlier this year, claims that Walz and Ellison knew about widespread mismanagement in Minnesota’s social service programs, which resulted in an estimated $300 million in federal child nutrition funds being lost or placed at serious risk. It also warned that up to $9 billion in Medicaid-related funds could be compromised. The findings have fueled accusations of negligence and complicity at the highest levels of state government.
In a letter to Vance—whom President Trump tapped as a so-called “fraud czar” to lead the White House Task Force to Eliminate Fraud—House Oversight Committee Chair James Comer (R-Ky.) urged the administration to investigate Minnesota’s programs. Comer’s request dovetails with a broader federal push to crack down on fraud, including a recent probe into Ohio Medicaid fraud that led to 14 charges.
“I’ve referred these allegations to DOJ’s new Fraud Division for criminal investigation,” Vance wrote on the social platform X. “Minnesota state officials are not above the law, and if they facilitated fraud, lied under oath about what they knew, or harassed and intimidated whistleblowers, they must face justice.”
Neither Walz’s office nor Ellison’s office responded to requests for comment. However, earlier this year, Walz dismissed the fraud investigations as politically motivated, calling the administration’s focus on the issue “absolutely not serious.” Walz, who served as the Democratic vice-presidential nominee in 2024, announced in January that he would not seek reelection, a decision that came amid mounting reports of fraud in state programs.
The Trump administration has taken aggressive steps to address the alleged mismanagement. In February, it paused $259.5 million in Medicaid funds to Minnesota, a move that prompted Walz to propose a legislative package stiffening penalties for fraud and extending the statute of limitations for certain fraud-related crimes to seven years. The state’s response has done little to satisfy federal investigators, who continue to scrutinize the scale of the losses.
The referral adds to a growing list of fraud-related actions by the administration, which has also targeted voter fraud claims in California and other states. Vance’s involvement signals a high-level commitment to holding state officials accountable, even as critics argue the investigations are partisan retribution. The DOJ’s new Fraud Division is expected to take the lead on the Minnesota case, which could set a precedent for how the federal government handles large-scale fraud in state-administered programs.
Political analysts note that the case carries significant implications for both Walz and Ellison, two prominent Democrats in a state that has been a battleground for fraud allegations. The investigation could also reshape the national conversation around accountability in federal funding, with potential fallout for other states facing similar scrutiny. As the probe unfolds, all eyes will be on the DOJ’s next steps and whether the allegations lead to formal charges.
