Comer targets Walz in new House investigation, citing nearly $1B in alleged Minnesota fraud

The House Oversight Committee has opened a probe into Gov. Tim Walz's handling of a massive relief program in Minnesota that federal prosecutors say devolved into the largest COVID-19 fraud scheme in the country.

"Minnesota Governor Tim Walz was warned about massive fraud in a pandemic food-aid program for children, yet he failed to act," Chairman James Comer, R-Ky., said in a statement obtained by Fox News Digital. 

"Instead, whistleblowers who raised concerns faced retaliation," Comer added. "Because of Governor Walz's negligence, criminals - including Somali terrorists - stole nearly $1 billion from the program while children suffered. The House Oversight Committee will conduct a thorough investigation into Governor Walz's failure to safeguard taxpayer dollars."

Comer's decision comes as the Treasury Department announced that it too is investigating the scandal and looking into whether Minnesota tax dollars were diverted to the terrorist organization al-Shabaab. 

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The Justice Department said approximately $300 million in taxpayer funds intended to feed low-income children during the pandemic was diverted through a nonprofit called Feeding Our Future in a sprawling case that has now grown to at least 78 defendants. The U.S. Attorney's Office in Minnesota said it was the largest pandemic-relief fraud scheme charged to date in the U.S.

Some of the organizations tied to the fraud were run by Somali Minnesotans, federal prosecutors say. 

Minnesota education officials say Feeding Our Future and its partner organizations submitted more than $500 million in claims - and Comer has alleged the total losses may have approached $1 billion.

Walz has come under fire after nearly 500 employees of the Minnesota Department of Human Services accused his administration of failing to act on early warnings of widespread fraud and retaliating against internal whistleblowers.

As chairman of the GOP-led committee, Comer is empowered to subpoena records and witnesses and to refer potential wrongdoing to the Department of Justice.

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A report by the Manhattan Institute's City Journal, citing unnamed federal counterterrorism sources, alleged that some of the stolen funds were transferred overseas to Somalia and may have ended up with al-Shabaab - though none of the federal indictments include terrorism charges and the Justice Department has not confirmed any such link.

Employees of the Minnesota Department of Human Services wrote on X on Saturday that Walz is "100% responsible for massive fraud in Minnesota."

"We let Tim Walz know of fraud early on, hoping for a partnership in stopping fraud but no, we got the opposite response," they wrote.

"Tim Walz systematically retaliated against whistleblowers using monitoring, threats, repression, and did his best to discredit fraud reports," the group claimed. "In addition to retaliating against whistleblowers, Tim Walz disempowered the Office of the Legislative Auditor, allowing agencies to disregard their audit findings and guidance."

The news of Comer's probe was first reported by the New York Post.

Fox News Digital reached out to Walz's office but did not immediately receive a response.

Treasury Secretary Scott Bessent on Monday launched a federal probe into claims that Minnesota tax dollars were siphoned to the terrorist group al-Shabaab under the Biden administration and Walz's leadership - an allegation he said demands urgent scrutiny.

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"At my direction, @USTreasury is investigating allegations that under the feckless mismanagement of the Biden Administration and Governor Tim Walz, hardworking Minnesotans' tax dollars may have been diverted to the terrorist organization al-Shabaab," Bessent posted on X.

"Thanks to the leadership of @POTUS @realDonaldTrump, we are acting fast to ensure Americans' taxes are not funding acts of global terror. We will share our findings as our investigation continues," he added.

The New York Times reported that what initially appeared to many Minnesotans as an isolated case of pandemic-era fraud has broadened into a much wider concern for state and federal officials. Over the past five years, law enforcement authorities say, several fraud schemes proliferated in parts of Minnesota's Somali community, with individuals allegedly creating companies that billed state agencies for millions of dollars' worth of social services that were never delivered.

Walz addressed the alleged fraud at a press conference last week, saying it "undermines trust in government," and "undermines programs that are absolutely critical in improving quality of life."

"If you're committing fraud, no matter where you come from, what you look like, what you believe, you are going to go to jail," Walz said.

He faced a question about the situation on NBC's "Meet the Press" on Sunday, when host Kristen Welker asked if he takes responsibility for failing to stop the fraud in his state.

"Well, certainly, I take responsibility for putting people in jail," the governor responded. "I will note, it's not just Somalis. Minnesota is a generous state. Minnesota is a prosperous state, a well-run state. We're AAA-bond rated. But that attracts criminals. Those people are going to jail. We're doing everything we can. But to demonize an entire community on the actions of a few - it's lazy," he said.

Fox News' Greg Wehner and Ashley Carnahan contributed to this report.