House Committee Targets Walz, Ellison Over Somali Fraud

The House Oversight Committee is moving quickly to probe alleged fraud in Minnesota’s social services programs, with hearings set for January 7 and February 10 that put Governor Tim Walz and Attorney General Keith Ellison squarely in the spotlight. Republican investigators say the scandal involves billions siphoned through sham businesses and ghost daycares, and they intend to press state leaders for answers and tougher safeguards. Federal agencies have already begun field actions in Minneapolis, and Washington plans to use the hearings to force accountability. Expect a sharp, partisan push from Republicans aimed at exposing failures and protecting taxpayer dollars.

Republican House Oversight Committee Chairman James Comer announced this probe and scheduled the first hearing for January 7, featuring Minnesota GOP lawmakers who say their warnings were ignored. The committee has invited Governor Tim Walz and Attorney General Keith Ellison to testify at a second hearing on February 10, raising the stakes for state officials. Comer argued there is a pattern of inaction that allowed a wide-ranging fraud to grow, and Republicans are framing the hearings as necessary oversight. This is being presented not as politics as usual but as a duty to taxpayers.

Comer wrote that Walz and Ellison “have either been asleep at the wheel or complicit in a massive fraud involving taxpayer dollars in Minnesota’s social services programs,” and he pledged vigorous action. That wording captures the blunt tone Republicans are using to describe alleged misconduct and administrative failures. The committee says evidence points to systemic problems in monitoring funds, licensing, and program oversight that allowed fake providers to collect public money. Lawmakers on the right want public hearings to shine light on how this went on for years without being stopped.

NEW: House Oversight Committee Chairman @RepJamesComer announces the committee’s first hearing into the MN Somali fraud scandal will be on January 7th & will feature MN state lawmakers who sounded the alarm on the fraud & were allegedly ignored. MN Gov. Tim Walz & AG Keith Ellison are being invited to testify before the committee in a second hearing on February 10th. 

“Minnesota Governor Tim Walz and Attorney General Keith Ellison have either been asleep at the wheel or complicit in a massive fraud involving taxpayer dollars in Minnesota’s social services programs,” Comer writes. “Next week, we will hear from Minnesota state lawmakers who sounded the alarm on this fraud—and whose warnings were ignored by the Walz administration. This misconduct cannot be swept aside, and Congress will not stop until taxpayers get the answers and accountability they deserve.”

Reports now estimate the fraud could top nine billion dollars, money allegedly funneled into sham Minnesota businesses, many tied to the Somali community. That figure, if accurate, represents a massive breach of public trust and a catastrophic failure of oversight at multiple levels. Independent video reporting that showed empty daycares collecting public funds intensified pressure on state leaders and helped spark federal attention. Republicans see those viral images as evidence that routine audits and common-sense checks were never enforced.

Federal agencies moved quickly once the scandal drew national attention, with Department of Homeland Security teams conducting door-to-door checks in Minneapolis to identify purported “ghost” daycares. DHS Secretary actions signaled a tougher enforcement posture and the start of operational countermeasures designed to stop ongoing fraud. At the same time, other federal authorities have paused some payments to Minnesota pending investigations, a step aimed at preventing further losses while audits proceed. Republicans will highlight these moves to argue Congress must tighten controls and close loopholes.

U.S. Department of Health and Human Services Deputy Secretary Jim O’Neill said it plainly in a video statement: “We believe the state of Minnesota has allowed scammers and fake daycares to siphon millions of taxpayer dollars over the past decade.” That assertion underpins the GOP case that state systems were either negligent or compromised. The hearings are meant to extract testimony about what state officials knew and when they knew it, and to document any gaps in licensing, monitoring, and funding safeguards. Lawmakers will press for records and sworn statements that can be used to craft new protections.

Comer has vowed a sustained oversight effort and made clear that Congress will not back down, writing, “Congress has a duty to conduct rigorous oversight of this heist and enact stronger safeguards to prevent fraud in taxpayer-funded programs, as well as strong sanctions to hold offenders accountable.” Republicans will push legislative fixes that emphasize accountability, verification, and penalties for those who exploit public programs. Expect proposals aimed at tighter eligibility checks, more aggressive audits, and stiffer criminal penalties for organized fraud.

State leaders now face a stark choice: cooperate with investigators and provide full transparency, or resist and risk a prolonged series of hearings and subpoenas. For Republicans, the hearings are both a fact-finding mission and a campaign to restore trust in how taxpayer dollars are managed. The GOP message will be blunt: when billions disappear from programs intended to help vulnerable people, oversight is not optional. These hearings will be a test of whether state officials can explain what went wrong and how they will prevent it from happening again.